News

After the honeymoon......working with Chinese investors, directors and executives

Once a potential acquisition or investment, is courted, wined and dined (extensively), legalled (is there such a term?) and closed, it is important to recognize that different business cultures can make the ongoing relationship fraught with misunderstandings.  The charming CEO to whom mutual pledges of brotherhood have been made, normally after much baijiu is consumed, now doesn't return messages or respond to email.  Or requests for an update on activity recieves the terse reply........"things are going fine."  Frustrating, to be sure.

There are ways to overcome the business culture abyss.  But, there is no quick fix.  It is important during the due diligence process to consider this aspect before an investment is made, and to play close attention to the nature of communication afterward. 

This Economist article nicely discusses what it is like to have a Chinese HO:  Being Eaten by the Dragon

Joint Ventures can be an effective way to enter the market.  This article by leading law firm Dezan Shira & Associates  (  Dezan Shira & Associates’ ) points out some of the intangibles.  China Joint Ventures: Understanding the Intangibles