Toast Your Foreign Hosts
Investor's Business Daily
Toast Your Foreign Hosts
Tuesday December 16, 5:53 pm ET
Gloria Lau
"There's nothing like the Chinese economy," Joseph Meuse, founder of Washington, Va.-based Belmont Partners, told IBD. "It's nothing like the world has ever seen."
Since 2003, Belmont has been helping Chinese firms get on U.S. stock exchanges via reverse mergers, in which private firms buy public ones to bypass the complex process of an IPO. Including Belmont, Meuse's closely held businesses bring in yearly sales of $10 million. Meuse and Richard Anslow, managing partner at law firm Anslow & Jaclin's New Jersey office, share tips.
Know the right folks. "It's extremely important to work with well-connected people," Anslow told IBD. "We deal with most of the major law firms and investment firms. I can make a phone call or send an e-mail and learn if that group is influential or not."
If someone claims he's related to a local official, ask around to confirm. Chinese society is tightknit.
Avoid arrogance. "Too many Americans bring their bold, brash ways and fail to understand why they turn off Chinese business owners." Meuse said. "Americans act condescending. They laugh under their breath at the Chinese way of doing business." You want their business? Show respect.
Earn their trust. Deals are done over drinks and elaborate meals. "If someone offers you alcohol, you drink," Meuse said. "If someone offers you a cigarette, you smoke."
Eat some of everything, even if it's ostrich intestines. Avoid forks. Use chopsticks. "It takes a few four-hour meals to accomplish a deal," Meuse said. "It makes sense. They're trying to learn who they're dealing with, not just whether you're competent. They're handing over their business to a stranger."
Avoid public clashes. If your bilingual staffer overhears something between the Chinese CEO and his translator that upsets you, don't confront the CEO in front of his colleagues. "We catch things, but we never embarrass the CEO," Meuse said. "We bring it up later, privately. Never lose your cool or demeanor."
Learn some Mandarin. "Shanghai and Beijing are very sophisticated and modern, so businesspeople (mistakenly) assume people speak English," Meuse said.
Master a few words in their language, carry a dictionary and hire a translator. Know where you need to go. "The basics of getting around in Beijing or Shanghai are harder than in other cities such as Paris, Hong Kong or Frankfurt where English is more commonly used," Meuse said.
Live there. Stay in a hotel in China for several months. Meet other Americans and Europeans. Learn from them and decide if it's right for you. Meuse sent two staffers there for five months before deciding when and where to open a Shanghai office.
Under-promise, over-deliver. "If you tell (a Chinese client) it'll take two to three months and it takes three and a half, they'll be disappointed," Anslow said. "Once that information gets around, it becomes hard for you to do a deal afterward."
Tuesday 16th of December 2008