DOING BUSINESS IN CHINA: Travel Abroad: Becoming a Seasoned Travel Veteran Can Expand Your Reach Globally

Doing Business In China with Dan Paulson

When planning travel abroad, follow these steps to make your trip more enjoyable and successful.

The world is becoming a much smaller place these days. The opportunities to expand your business are endless. Though many of us don’t see ourselves as road warriors, it will be important to make those trips overseas if you wish to expand your business internationally.

Travel is about more than hopping on a plane to get to where you need to go these days. There are passports, visas, and cultural issues that you need to be prepared for when the meeting takes place in another country. Often there are misconceptions about foreign travel. What was true years ago may not be so today.

We have all heard the travel horror stories. I was recently speaking with someone about travel to China. He shared his experience of his trip in the early 90’s to a city in the southern part of the country. By the sounds of it nothing went right. The airline had lost his luggage, he got sick from the food, couldn’t drink the water, the hotel was a flea trap, etc. This has been nothing like my experience.

China, as well as many other countries, has changed in recent years. Old hotels, poor water quality, and a general concern for safety has diminished significantly in recent years. During my last visit, I navigated my way between Beijing and Tianjin with only a few cards telling the drivers where to take me. Even for large cities, I felt safe. And trust me, a Midwestern boy in the middle of China sticks out like a sore thumb. I found the food was great, the water was fine, and the hospitality of the people was wonderful. That should not discount the fact that traveling to ANY new environment requires taking certain precautions.

The rules of seasoned travelers:

Visas and Passports – Today any travel abroad requires a passport. The need for a visa depends on the country, length of stay, and nature of the trip. For China, a visa is required for entry. In fact, you will not be allowed to board the airliner without first letting the flight attendants make sure your visa is current. Trust me, you don’t want to fly on a plane for thirteen hours only to have to immediately fly back. Whenever you have questions about international travel, defer to your government. In the US, travel.state.gov is the site to visit.

Be informed – The US has the Smart Traveler Enrollment Program (STEP) which will help you with your trip. This can help you stay connected with the consulars and embassies in the country you are traveling to. They will also notify you of any warnings or alerts.

Flying – Airlines are notorious for losing luggage. About 25 million items of luggage are lost each year. This equates to about a one in a hundred chance that you will lose an item each time you fly. (Source: Airport Transport Industry (ATI) baggage report) Make sure your bags are labeled well and any old destination tags are removed. You will want to keep any essentials with you to get you by should something happen. Also, there is less of a chance to lose your luggage if you have fewer transfer flights. It’s always best to take the most direct flight possible. Finally, if you are taking a short trip, pack a carry on.

Know the region – Traveling to the interior of China is much different than traveling to a large city such as Beijing. Know where you will be staying and what’s around you. During my last trip, I stayed in downtown Tianjin. The hotel I stayed at was inexpensive and clean. The amenities weren’t the same as a four star hotel, but they served my purpose. There were several quality restaurants in the area as well as chains such as McDonalds and KFC. Though densely populated, the area was safe and modern. I walked the streets alone in the evening and encountered no problems.

Know your surroundings – This should be true whether you are in a city in the US or abroad. Dangers occur when people do not pay attention to what’s going on around them. Pay attention to who is around you and what is happening. Not only will this allow you to enjoy your environment more, it will help you avoid problems or dangers.

Food and water – Anytime you don’t prepare food yourself, you are entrusting another person to do it correctly to avoid food borne illness. While many of us have experienced poorly prepared food, we can take precautions to help minimize the chances of getting sick. First inspect as much of the area as you can. The smaller the food joint, the easier it is to see how they prepare their food. When in doubt, trust your gut (yes, pun intended here) and avoid eating at that establishment. Ask the locals where they recommend. Many times hotel staff, or business connections can make recommendations on where to go for a good meal. As for water, most newer hotels and restaurants have their own filtration. If you are unsure, use bottled water to be safe.

Culture – No matter what country you are from, not paying attention to local custom and culture will make you look like a poor traveler. Understand where you are going and who you are going to meet with. How do they like to be addressed, what are the customs for greeting? For example, in China, a handshake is customary in initial greetings where in other parts of Asia bowing is the norm. Learn enough of the local language to cover some basic needs like finding a bathroom, getting water, or getting food. Most importantly, know what’s offensive. Things we take for granted here can be highly offensive somewhere else. I find people are more than willing to help if you make an attempt to first communicate at their level.

Enjoy it! – Too few people take the opportunity to soak up a new cultural experience. Be open to the new world around you and seek out ways to make the trip enjoyable for you and for others. Experiencing the world on a global scale helps create understanding. Understanding breaks down misconceptions and stereotypes. Your appreciation of others can be a key to being successful as you conduct your business trip.

For more information, please visit Dan's TNNWC Bio.

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Capital, Traffic Building, International Customers and unique SERVICES.
The National Networker Publications™ produced by TNNWC Group, LLC
Resources for Business Planning, Development, Capital and Growth

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DOING BUSINESS IN CHINA: Travel Abroad: Becoming a Seasoned Travel Veteran Can Expand Your Reach Globally

DOING BUSINESS IN CHINA: China Trade: Becoming a Good Chess Player

Doing Business In China with Dan Paulson

In recent months, the US has sought to pressure China to re-value the Yuan. By strengthening China’s currency, the US hopes to lessen the imbalance of trade by making US goods more competitive. Over the past several months, this pressure has been increasing. Watching this play out is a good study on how business between the US and China often differs.

In the United States, we are very used to our way of business. We can be demanding, willing to pressure others for price and service, and set expectations for immediate returns. Things here move at a pretty fast pace. In China however, the pace can be much different. Relationships take longer to build and the quality of these relationships can vary significantly. Also important is one’s ability to save face. Things we take for granted in business discussions here, can potentially be deemed offensive by a business connection in China. This is why the strength of the relationships are so important and one should treat business relationships in China more like a Chess match.

If you consider the re-valuation of the Yuan, China has taken a slow and methodical approach. This doesn’t work well with our occasional “shoot from the hip” style. Our habits of wanting action now could potentially cause the China administration to retaliate creating a negative impact on trade in the years to come.

Doing business in China is more of a chess game. It requires strategy, patience and a willingness to approach business from a different perspective. Setting political differences aside, there are tremendous opportunities for businesses to grow in China if they apply certain tactics and observe some of the mistakes others make.

• Relationships first – Weak relationships produce poor results. Much like us, the Chinese look for short-term gains. Less like us, they are not as concerned about the “sale after the sale”. Unfortunately, this is where many businesses get burned. Focus on strong relationships first.


• Saving Face – It’s hard for anyone to accept criticism. In some cultures it is even more difficult. So is true in China. Anything that could challenge or damage someone’s power (real or perceived) is frowned upon. This is where you may get commitments from business connections that cannot hold up.


• Give respect as well as receive it – This is part of relationship building and saving face. The more respect you give to your business contact, the greater respect you will receive in return. Playing games or trying to force your hand will damage your business relationship and could cost you. Make sure you show that you intend to work with your partner.


• Conduct face-to-face meetings. Again build relationships. Personal contact can make the difference. There is a lot that can be lost in translation (quite literally) by not getting together with the individuals you are trying to do business with. Especially if they are half way around the world. The money spend on travel could save you increased costs and headaches down the road.


• Understand what moves your international connection is looking to make – Depending on your relationship, be ready for them to tell you what you want to hear. Make sure they are able to deliver on what you are looking for. You may receive assurances that they can deliver when they really are unable to. Pay attention to body language. Get clear about what you need and what they are offering.

The differences in your relationships will make all the difference in your business. While we may not have control over the value of currency, when it comes to negotiations, we can definitely learn what works and what doesn’t.


For more information, please visit Dan's TNNWC Bio.

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Capital, Traffic Building, International Customers and unique SERVICES.
The National Networker Publications™ produced by TNNWC Group, LLC
Resources for Business Planning, Development, Capital and Growth

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DOING BUSINESS IN CHINA: China Trade: Becoming a Good Chess Player

DOING BUSINESS IN CHINA: Never Assume Anything, Part 2: When “Yes” Means Something Else…

Doing Business In China with Dan Paulson

I grew up and have lived in the Midwest my entire life. Often I hear from others how nice Midwesterners are. We are polite and courteous. We respect others and it’s still possible to get a wave from a total stranger when you are out and about. Even in the US, there are cultural differences when you compare the perceptions of people from the south, either coast or the heartland.

In some cases our nice guy reputation can get us in trouble. Throughout my travels and through my work with different businesses here, I found that one of our challenges is dealing with conflict. Here in the Midwest, we often try not to hurt anyone’s feelings. In some cases we may say yes when we really don’t mean it then disappear when the person we said yes to tries to contact us. Other times we may not commit and string the person along until they are frustrated with waiting. And there are still other times where we may nod our head and smile without having a single clue to what the other person is talking about. Anyone in sales would tell you this is extremely frustrating.

While I am sure many of you have run into similar circumstances throughout the country, it is often perceived as a cultural phenomenon of the Midwest. Internationally we can face similar challenges as well.

I know a company that was looking to source materials from China. They had a project coming up that required the product to be of a specific design and needed it within a few weeks. A company in China was contacted and the management told the management from this company that the products they needed would meet specifications and be delivered by the time required. After many promises and past deadlines, the products were shipped. The cost savings for manufacturing abroad were lost through expedited shipping costs, increased labor for checking products in the US, and a damaged reputation.

In China, it can be said that yes can also mean no. As a foreigner, knowing the difference can be difficult and failing to understand can be costly. We can take it for granted that what is said will be delivered but this isn’t always so. In some cases, you might get what you ask for. I heard a story of a company that wanted to produce a product similar to a brand name competitor. They took the product to an importer and asked them to make the same item. The importer delivered on its promise and produced the same item… exactly as what was given to them… logo and all! You can imagine the impact this mistake had on that company’s business.

The key to understanding when yes means no isn’t always easy, but there are a few steps you need to take to protect yourself if you wish to do business in China.

• Outrageous claims are a good warning: Unbelievable costs followed by incredible turn times should serve as a warning for you. If you are promised something at a marginal cost to the nearest competitor, it is an offer that is probably too good to be true. I would question the quality of the products you would receive. You might be setting yourself up for a future recall. If it’s outrageously cheap, there has to be a reason why.
• Room for interpretation: Multiple meanings can create multiple outcomes. Make sure the meaning you wanted is the same one that is interpreted. Approach communication from that of a thesaurus. Provide analogies relative to the culture and allow your contact to “visualize” your meaning.
• Saving face is important: Your new connection in China may want to build confidence with you. They wouldn’t want to jeopardize their relationship with you. A sign of a strong relationship is when your Chinese contact is willing to tell you no.
• Have a Chinese contact involved: Having a good Chinese contact that has a very good English vocabulary and knows what questions to ask YOU so the information can be accurately interpreted is very important. Spending a little money and time here can save you costly mistakes down the road.

A few simple steps goes a long way to preventing big mistakes. Whether you are exporting to (or sourcing goods from) China, you need to know that what is meant is understood. It is possible to grow your business successfully in China with the right understanding, the right relationships, and the right know how. Invest wisely in your time and your money and you will find success.


For more information, please visit Dan's TNNWC Bio.

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