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This book is full of great information about China and how to understand the Chinese mindset. It will help with negotiations because of the better understanding of Chinese business practices. Well worth the time to read it.
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N. Mark Lam and John L. Graham offer an interesting, informed overview of doing business in China. The authors did some of their research on Wikipedia (a source they honestly credit), and some in popular business magazines and books, but the source that comes through is their experience. They do a good job of pulling all their material together. They begin with a summary of history, followed by advice on negotiating with background material on American and Chinese attitudes. This guidance is useful, though much of it has become familiar elsewhere. Other sections cover intellectual-property protection (or the lack thereof) and the intriguing nature of competitive factions in "Greater China." Some of the opinions here may be chancy (i.e. the notion that if the U.S. imposed trade sanctions, China would sell its U.S. Treasury holdings), however, getAbstract sees the factual material as a useful background for doing business in China.
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This is an interesting book well worth reading, especially if you are doing business in China or plan to do so.
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The book is a page turner. China joined the WTO in 2001. With the upcoming Beijing Olympic Games in 2008 and Shanghai World Expo in 2010, China provided fantastic opportunities for multinational enterprises.
The comparisons on negotiation style between Japanese, Korean, Taiwanese, Hong Kong and Chinese managers, were covered in details. It is the best part of the book. This is a must read for all American CEOs.
With the new leadership, Mr. Hu Jintao as president and thousands of revised laws, China is moving out of the corrupt-country list eventually.
In Northeast of China, 4,000 Japanese companies set up shops in Dalian, Harbin is the little Moscow, and Shenyang got investments from South Korean firms. In 2006 Putin approved the oil pipeline from Siberia to Daqing (an old oil field in China), costing $11 to $16 billion USD. Again, opportunities are everywhere!
A good example was given on GreenTree Inn in Shanghai, a hotel chain established by a Californian Chinese. He suffered much on his dealings with the Chinese government red tapes. But at the end, he prevailed. The three keys to his success are: guanxi, patience and persistence.
US and China needed each other. China is no longer just an export country like Germany. China is quickly becoming a vast market for American and global brand-name products. In China, the 300 million middle-class population, is the ultimate consumer power. This number is increasing every year.
The book provided too much history on the Asian countries and it will be better if more real life success stories are covered.
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Every time I visit Shanghai, I become more convinced that this is the Chinese Century, much as the last century was dominated by America and the 19th Century by Britain. I picked up a copy of this book at Hongqiao Airport en route to Beijing and finished it within days.
The authors clearly know their stuff, and despite repeating themselves throughout the text, present a compelling case for respecting Chinese culture and learning how to conduct business differently than the typical American practices. I found their comments on intellectual property rights to be particularly insightful and convincing. Their argument that China (or any other country) will not be motivated to respect other countries' IP rights until they themselves have IP they want to protect is supported by the history of Taiwan, Japan and the US.
Anyone who wants to do business in China will benefit by reading this book. Since China is quickly becoming our biggest trading partner and will someday soon have an economy larger than the US, learning some Mandarin wouldn't hurt either.
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