Boyden: Five Things to Know When Negotiating Business Deals in China
Boyden's Insights page features this article that gives foreign companies five tips when negotiating with China:
- Make it personal. Play up any connections with individuals in the would-be partner company. For example, shared "dialect groups" can be a good gateway to partnership connections.
- Break China into pieces. Firms should analyze the country by segments, as spending habits vary. Otherwise they miss the market.
- Draw a boundary. If a mere toehold in China is what you're after, a short-term deal might work.
- Learn liabilities. A Western company that agrees to an acquisition by someone in China should know the buyer's past.
- Know the role of the government. If China and foreign governments consider each other strategic rivals, investment authorities on both sides will keep a close eye on any major tie-ups.
Thought leadership category