Tied Together Globally: Natural Events and Their Impact on Us | DOING BUSINESS IN CHINA

Doing Business In China with Dan Paulson

The earthquake and tsunami in Japan demonstrate how globally connected we are. In business, this presents risks and opportunities.

Our world is constantly changing and much of that is beyond our control. That became very apparent this March when a large earthquake followed shortly by a massive tsunami hit the coast of Japan. To our friends and colleagues, our hearts go out to you, and we wish only the best.

Besides the physical damage created and the tremendous number of lives lost, there is also an economic ripple that impacts virtually every country. Japan is a major supplier of semiconductors and automobiles. Early predictions are to expect cost increases and production delays at least for the short term. The bigger impacts may be felt in Japan’s economy for years to come.

Recently, China surpassed Japan to be the second largest economy in the world. The current situation presents both challenges for China and possible opportunities. One of the greatest challenges that China will face is importing. Japan is China’s largest import partner with 13% of products coming from there. The short-term impact is already being felt, as needed components are not shipping. The parts shortage will slow down China’s industrial engine that it has built so much of its economic growth on. While this is expected to be only an immediate problem, the long-term affects could strengthen China’s position as an economic superpower. Japan, which already had its own economic woes is not helped by the latest turn of events and while they will recover, one has to ask to what level.

For other countries, they too will experience short-term problems with the interruption to the supply chain. However, this may also be an opportunity for other countries to increase their import power to China. As a developing nation, China still has many needs to fill. With the current situation, China may choose to seek components from elsewhere in the world and some companies may want to take advantage of this.

Our role as a nation is to help Japan get back on its feet as quickly as possible because the biggest challenge globalization presents is the impact of one economy on another. Yet we also need to look at ways we can strengthen our business growth. Emerging companies could reap the greatest benefit from this. It just depends on what you are willing to do.

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Tied Together Globally: Natural Events and Their Impact on Us | DOING BUSINESS IN CHINA

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

DOING BUSINESS IN CHINA: Out for the Holidays

Doing Business In China with Dan Paulson

In the US, we may take it for granted that the holidays we celebrate are also celebrated elsewhere. In China this is not so and if you’re not careful, you may find yourself in a pinch.

With the holiday season upon us, I am reminded how different cultures can be when it comes to celebrating. Seasoned travelers understand that what we celebrate here often isn’t celebrated somewhere else or vice versa. You can imagine how things change around the holidays in the US. During this time of year, retailers are in full swing. There’s a reason why Black Friday is such an important day for this industry as most of the profits earned by retailers starts just after Thanksgiving. In some industries, trying to do business this time of year is virtually impossible as business-to-business transactions come to a screeching halt.

In China, the holidays there are considerably different than they are here. The Chinese have seven holidays (see table) that are recognized nationally. During these celebrations, work in China comes almost to a complete standstill. With the exception of New Year’s, no other holiday aligns with ours here in the states. If you are doing business with China, it will be important for you to remember these dates and understand their significance.

Festival	Date	Legal Holidays	Holidays of 2010	Holidays of 2011
New Year’s Day	Jan. 1	1 day	Jan. 1-3	Jan1-3
Spring Festival (Chinese New Year)	Based on Lunar calendar	3 days	Feb. 13-19	Feb. 2-8
Qingming Festival	Apr. 4 or 5	1 day	Apr. 3-5	April 3-5
May Day	May 1	1 day	May 1-3	May 1-3
Dragon Boat Festival	The fifth day of the fifth lunar month	1 day	June 14-16	June 4-6
Mid-Autumn Day	August 15 according to the lunar calendar	1 day	Sep. 22-24	Sep 10-12
National Day	October 1	3 days	Oct 1-7	Oct 1-7

In addition to the seven legal holidays, there are four other national festivals where workers may get time off, plus there could be numerous recognized local and regional events that could impact workflow.

Recently we were working with a company in the states that wanted to purchase products from China. This company is very client centered and deadline driven. While they were used to working with these tight deadlines, they had not done much business with China.

We were asked to assist them with finding a suitable manufacturer and making the contact for them. We began our process in early fall and shortly after starting work, were asked to place an order that had to be in the United States by early October. At the time the order was placed, it was approximately two weeks before National Day which is the equivalent of our Independence Day. Keep in mind the products had to be made, passed through customs, shipped, pass through customs in the U.S.A. and delivered in this time. What transpired in the coming weeks was enough to give anyone gray hair and I earned my share as different unexpected challenges popped up.

The shortened version of the story is the products, though they were made in time were tied up in shipping and customs, and ended up arriving late. Even our best efforts couldn’t control all the variables from what would be a normal workweek in China. The problems compounded themselves with the holidays. Here we have been spoiled in recent years. There was a time in our not too distant past when nothing would happen on a national holiday. You spent time with friends and family. If you needed to go to the store or get something done, too bad. In China, it is still much like that. Everybody stops to celebrate, and while early October might not be a big deal to us, it is very important to that culture.

So here’s wishing you a happy holiday season. If you are looking at expanding internationally, be sure to know that nation’s culture and what they celebrate as well. It could lead to profitable relationships for years to come!

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

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DOING BUSINESS IN CHINA: Out for the Holidays