Networking the Eastern way

By ANGELA McCARTHY

When in Rome, do as the Romans do, right? Yes and no, says Jin Lan Yang, senior lecturer in Chinese at Unitec.

"No matter where you live, knowing the differences between cultures can be a big help," says Yang, who has been in New Zealand for 15 years. Last year she helped run three seminars on communicating effectively with Chinese in personal and business contexts.

Auckland has approximately 100,000 Chinese immigrants, many of whom are setting up and running businesses or seeking jobs.

An understanding of the huge cultural differences in life and business is vital if Auckland is to reap the benefits of this new diversity, says Kenneth Wang, marketing director of Brandworks and an Auckland resident for the past 18 years.

According to Trade New Zealand North Asia services manager Jonathan Watt, the crucial point when dealing with Chinese businesses is to establish a relationship first. A great idea or product is not enough.

Business in China can't be separated from society, whereas in the west there is a tendency to treat business as a separate entity, says Yang.

"Interpersonal networks are still the cultural norm. Once a relationship is established, the maintenance of a good relationship is particularly important for the business to continue." Here are some pointers:

* Exchanging cards

Exchanging business cards is a standard greeting process but too many Kiwis still grab the business card and flick it into their pocket without acknowledging the card and its contents. The card should be accepted in two hands because that shows more respect, explains Yang.

A Chinese surname is very special, so it is important to try and say it correctly. If someone helps you pronounce their name, pay attention. Correct pronunciation will help in later dealings. Translating your brochures and business cards into Chinese is another way to go the extra mile, says Watt.

* Getting to know each other

Don't expect to do business in your first meeting, says Watt. "Initially, business people want to know about you and your character."

Research for a paper on business culture and language by Yang and fellow writer Raewyn Nevin found some companies invested a couple of years in developing healthy relationships before doing business.

"Any business needs to have trust, and Chinese people possibly put too much emphasis on relationships. In China everything is done through "guanxi", or relationships. My father knows your father, so a relationship is already there. Foreigners are well behind," says Yang.

If westerners want to do lasting business they need to make it into the circle consisting of the people they learn from and make money from, says Bill Watson, managing director of Access Asia, a consultancy on Asian business strategies and negotiation.

"To do that you have to build trust and that is done by making a small promise and keeping it," says Watson, who lectures in Asian strategies at Auckland University School of Business.

* Socialising

Socialising is essential in relationship building. During negotiations, Chinese business people will want to have a meal and sing karaoke, says Watt. But the negotiations continue over the food. People relax, especially if a bit of alcohol is involved, and many deals are signed at lunches.

Auckland-based accountant Melody Sun, who set up her own company, Sun and Associates, four months ago, says she spends a lot of time entertaining around business.

"Doing business is very personal," she says. "This works well in our community. We talk over the table and they start to trust you and like you. They want more than a business relationship as New Zealanders know it."

However, Yang points out, the Kiwi habit of splitting the bill after dinner is considered rude: "Whoever invites pays."

* Straight talking

Directness doesn't go down well with Chinese businesses.

"Kiwis are very straightforward about money, business and profit and Chinese clients don't necessarily like this," says Sun.

A strict charge-out on time by accountants and solicitors isn't appreciated, which is why Sun has changed her approach now she has set up her own practice. She gives a quote, depending on the work required.

"It feels more transparent to them," she explains. "Sometimes they'll then give you more because they think you deserve it."



* Saying no

The indirect approach is most evident when someone has to respond negatively during a deal.

"Chinese don't directly say no," explains Yang. "They will say: It might be quite difficult, it will take time, I'll think about it. They all mean no."

Diplomatic Kiwis who can also couch a refusal indirectly will get a much better response. It is a face issue, says Watson. No one should be made to feel hurt or humiliated.

Decisions are usually made before a meeting so there is a solid front of agreement at it. People don't want to argue in front of you, which shields decision-makers from too much praise - or damnation.

"If a statement is made that you disagree with, don't say so at that point," says Watson.

"Just make sure you don't close the negotiations, but move onto the next point. You come back to that point later with the negotiator. Don't cause him to lose face."

You're possibly not even talking to the main decision maker anyway - and knowing who that person is becomes a crucial point in negotiating, says Watt.

"You may be talking to the translator and the old man in the corner may be the key person. It is important to figure out who is pulling the strings."

* Giving and taking

The need to preserve face and position means that ultimatums won't work.

It is always about compromise, rather than win-win, says Watson. The problem with a win-win is that it can easily become a lose-lose.

Chinese businesses want to work on a basis of friendship and reciprocity. This means the ledger is never balanced, says Watson, so it's important to sustain friendships: "You have to look at the macro picture."

One businessman who regularly does business with Chinese in China and New Zealand, says he always leaves sufficient latitude in negotiations to allow his counterpart room to negotiate back.

It may feel like unnecessary bartering to westerners, but he says, it is an integral part of negotiations.

"We tend to see the big picture, rather than the small, which is why we often put up with little things in hope of taking bigger steps ahead later," explains Wang.