When I landed in Singapore at 5:30 in the morning on my first
business trip more than nine years ago, I didn’t
realize how the experience was to change my impression and understanding
of Asia.
If This Is Tuesday ...
Fast Facts about the Far East
CHINA
Population: 1.3 billion
GDP: $7.262 trillion (ranked 3rd in world)
JAPAN
Population: 127.4 million
GDP: $3.745 trillion (ranked 4th in world)
THAILAND
Population: 65.4 million
GDP: $524.8 billion (ranked 20th in world)
We, the managing director and I, were met by our local (Chinese) representative
and our first stop was the Red Star for an early morning meal of dim
sum (small
Chinese delicacies). At that point, I immediately understood
the role that food was to play in my new job as regional sales manager
for Asia Pacific for Hanita
Coatings.
Before making this
trip, which did not end in Singapore but took me to Thailand, Japan, and
mainland China, I thought Asia was a region where everyone looked and
acted the same. I quickly learned that each Asian country has it's own
language, history, culture, and way of doing business.
Here are some general
points from my experiences about some of the countries in the region.
Thailand
Upon arriving in Thailand, it wasn't long before I realized that I had arrived
in a most hospitable country. Doormen at the hotel all greeted me
with the traditional "hands
together" gesture. During business discussions, it
quickly became clear how patriotic and how kind the Thai people are. Even
when complaining about defective products, they apologized for complaining.
As such, they expect a similar manner and attitude from business
colleagues.
The blustery verbal style that is so common in Israel is not recommended
in Thailand. Showing some care and warmth will
earn a lot of respect in Thailand.
Japan
The Japanese are hard working and very loyal employees. Traditionally, the
Japanese do not change companies; they join a company and more than
likely remain there all their working life. Most businesses have a very
strong identity and might even have their own song or work decree that
would be recited by all employees at the start of each work day.
Negotiations with the Japanese usually take a long time. They
will not finalize any business deal without checking the company in
depth, and re-checking aspects of the product, the deal, and the contract.
In Japan, as opposed to most other Asian countries, price is less of a central
issue, but loyalty, reliability
and quality are the points that can clinch a deal. Once an agreement
is reached, the Japanese will remain loyal to that agreement under most
circumstances, and they expect the same from you.
People's Republic of China (PRC)
This brings me to the most populated nation of the world – China.
Places like Singapore, Taiwan, and Hong Kong have Chinese population, but are very
different from the PRC (mainland China). The PRC is still under communist rule and
has only recently been exposed to other cultures other than their own.
“First friends and then business.” This saying is often recited when doing business in this vast country. This is correct in most of Asia, but particularly so in China. Business will happen almost only once a relationship has been established and generally forms the basis for moving forward with any negotiation and business.
That is the reason that people say you need time and patience to do business in China (and the rest of Asia). Unlike in other countries, time
isn't money. The Chinese are quite happy to take the time to form relationships (eating, drinking, and entertaining in karaoke bars and dim sum restaurants) before looking at a meeting agenda, which brings me back to what I said at the beginning of this article. Many hours can be spent at meals, not just eating, by mainly discussing politics and other general issues. It is all part of the process.
Chinese often base their negotiations on bing fa, which are the traditional
strategies used during ancient Chinese warfare. The meal, too, can turn into
a strategic battle, where guests are offered some rather odd dishes to taste,
or "convinced" to drink excessively (which can actually build relationships),
or, more than likely, suddenly asked to review issues that were previously discussed
— and agreed upon — in earlier meetings.
After traveling on business in Asia for nine years, I can say that I have learned
something from every trip, and that I continue to learn with each landing in
Beijing, Tokyo, or Bangkok. There is a lot of truth in the statement "East
is east and West is west and never the twain shall meet," but new markets and
opportunities do cause us to meet. Just as we recognize the different business
cultures in "the West," we need to consider and respect the differences in
business culture and tradition of our business colleagues and potential partners
in the East.
China Q & A
From the editor: Leon answered some
general questions I had about traveling to the Far East. He explains that
some are specific to China but may apply
to other countries as well.
Do you need special visas? Leon Davids: Israelis need visas to China, Taiwan, and India
(also Australia). With a Chinese visa usually only one entry is issued, but you
can request two entries (valid for 3 months). If you get an official letter from
a Chinese company, you can get a multiple entry visa that is valid either for
6 months or sometimes 12 months.
Are there problems with the language? Is it helpful to
know the language? LD: Language is a big problem as a majority of Chinese do not
speak English. You will need a translator; if possible, one who understands
your business. It is worth spending money on a translator as an incorrect translation
can lead to possible misunderstandings and problems in the future.
It is not
always good to have a "Western" translator. The translator needs to know the
Chinese manner and has to be seen as a bridge (with a common bond) and not biased
to one side. The Chinese appreciate it if you can say a few basic words in Chinese
(hello, good morning, thank you). More than the basics can
be problematic if you don't know language and the correct tone and innotation.
How easy is it to get from place to place when going from meeting to meeting? LD: It is worthwhile having a local representative with you
all the time for communication purposes. Signs are usually only in Chinese with
hardly any English. Even taxi drivers can't really communicate in English. Have
your locations and addresses prepared in advance in Chinese characters.
Are there special considerations for bringing samples? LD: It depends on the product — the physical product is always
beter than a theoretical discussion. Products which are geared less to the technology
and more on the practical are better, both with regard
to product explanation and description. Whenever possible bring samples.
Is it more or less expensive than Israel? LD: China is a cheap market. Food, clothing, and transport are
all inexpensive, but rent is expensive especially for foreign companies or people.
What interests the Asian businessperson about Israel? LD: Interest in Israel is great! Israel is known as a country
with advanced high tech and military prowess. Asians respect the fact that we
have managed to survive in such a threatening surrounding. Israelis (Jews) are
perceived as good ("clever") businesspeople and are respected for this. Chinese
like to compare Israel and China as two nations with a very long history (6,000
years), persecution (the Holocaust and Japanese persecution of Chinese in World
War II), and the "gift" of
both peoples having good business minds.
Is it appropriate/acceptable to bring gifts (to the host company)? If
so, what have you brought? LD: Gifts are important in the region. Even small items like
a keyring with an Israeli/Jewish design are appreciated as are larger items such
as glossy photo books on Israel and Jewish artifacts.
About the author: Leon
Davids is the regional sales manager for Asia Pacific for Hanita Coatings. When he's not on the tennis courts, Leon can be found jetting his way between the Mideast and many different points in the Far East.
Upon arriving in Thailand, it wasn't long before I realized that I had arrived
in a most hospitable country. Doormen at the hotel all greeted me
with the traditional "hands
together" gesture. During business discussions, it
quickly became clear how patriotic and how kind the Thai people are. Even
when complaining about defective products, they apologized for complaining.
As such, they expect a similar manner and attitude from business
colleagues. 
Negotiations with the Japanese usually take a long time. They
will not finalize any business deal without checking the company in
depth, and re-checking aspects of the product, the deal, and the contract.
In Japan, as opposed to most other Asian countries, price is less of a central
issue, but loyalty, reliability
and quality are the points that can clinch a deal. Once an agreement
is reached, the Japanese will remain loyal to that agreement under most
circumstances, and they expect the same from you. 
This brings me to the most populated nation of the world – China.
Places like Singapore, Taiwan, and Hong Kong have Chinese population, but are very
different from the PRC (mainland China). The PRC is still under communist rule and
has only recently been exposed to other cultures other than their own.