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Personal Data

Country of Origin: USA
Location: Shanghai
Time in China: 4 Years

I took the time to study the language, the culture,and the Chinese market before I started doing business on a serious scale. You have to understand the Chinese way of thinking BEFORE you try to negotiate agreements and pitch deals. Don't think you can come in and do things on your own terms. It won't work. That's a guaranteed formula for failure. If you invest the time to learn the Chinese market, there is potential for massive success in this market.  



 

Company Data

Position: Managing Director
Industry: Chemicals/Recycling
Website: Apex Plastic Recycling

 
Apex plastic recycling limited trades and consumes large quantities of pet flake and bale on a monthly basis. We have a worldwide network and are active in many countries.
We also sell pet related machinery (grinding and washing line) to our customers worldwide. To produce top quality flake it is important that grinding and washing is conducted in a professional manner.

Don't take people's word for anything. All agreements must be in writing and signed by both parties to be effective. This is even truer in China than in the West. There are no “handshake” agreements or gentleman's understandings in China . Don't believe the hype that in China “no one uses contracts”. If an agreement isn't in writing, it means nothing. There have been many times when Chinese buyers have backed out of deals at the last minute without explanation or discussion. The Chinese tend to avoid conflict and confrontation, even to the point of avoiding sensitive negotiating points at meetings. You may leave a meeting thinking you have just reached an important agreement when in fact your Chinese counter party was merely being polite.



You really have to follow all the proper procedure when doing business here. People are always saying that the laws aren't followed or that “everyone does it” a certain way. This is simply not true. China 's regulations are there for a reason, and the government really does enforce them. It is sometimes difficult to be 100% clear on what the regulations really are, but that is part of the responsibility of doing business in China . Don't think you are above the law. Do your own due diligence.



It's easy to waste a lot of time dealing with the wrong people. In China it can be hard to figure out who the true decision-maker is. Everyone you meet will represent themselves as the one who makes the final call, but it really isn't so. Make sure you are talking to the person who has the power and ability to decide. The gatekeepers in China are much more indiscriminate than in the West. They see their main job as protecting the boss' time, even if it means losing an important opportunity.

I learned not to move too quickly and rush things. Don't make massive investments right off the bat. Don't try to close a deal as quickly as you would back home. Even when you think you are moving slowly, the Chinese person you are dealing with may think you are rushing into things. There is a lot to learn in China , and I think I have been successful because I took the time to become familiar with every aspect of the market and the people I work with.



I spent the time learning Chinese - and China. If you don't speak Chinese, you will spend all your time negotiating with secretaries. If you can't speak Chinese, make sure that someone in your company does – and make sure it is someone smart, responsible and reputable.

Take the time to develop a long-term relationship with your Chinese counter- party and partners. This isn't easy to do, but it really pays off in the long run. A trust-based business relationship is much more valuable in China than in the West.
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