Топик: Особенности ведения бизнеса в Китае (The peculiarities of marketing strategy development in China)

During the negotiations they tend to be flexible and leave the matter half-settled whereas

the Western companys want the issues sharply defined make the mutual responsibles

clear.

During implementation of the contract there are the problems that may crop up .

For example,in one case where a Swedish firm entered a joint-venture agreement with Chinese there had been the case of misunderstanding for the Chinese refused to provide

a Swedish managing director with the Western-standart office.The Chinese in its turn just offered a common Chinese-standart residence equal to other Chinese executives .Western standart for the office was stipulated in the contract so the Chinese got out of the contract.

The conflict was so serious that the firm started to calculate the consequences of nonful-

fillment.

MANAGERIAL IMPLICATIONS

Priority In the late 70s and early 80s,when a number of Western firms were negotiating

with China due to newly spread „China fever“,many of them were greatly disappointed.

After negotiating for months or years,they realised that foreign was not available for firms.Even for the Chinese authorities it was a great problem as they were losing face

and credibility among the investors.As a result ,as long ago as in August 1985

the Chinese authorities announced four categories of priority projects to attract foreign

investors:Energy and mineral recources ,high technology,medical equipment and food-

processing,and construction projects.

During this spell of „China fever“-1993-1994 things improved in China.The decentralisation of decision making and the independence were given to provinces facili-

tated business activities and the process of negotiating.

Basically the Chinese government selects the projects carefully and the priorities change

from time to time.But the culture of standing by agreement leaves much to be desired.

Even the authorities are enable create obstacles such as unnecessary delays.

On the other hand,if the project goes with the categories mentioned above the firms are

in the better position in negotiation and implementation.As a rule the foreign exchanges

are approved by financial authorities.It is also important to gather information of

Chinese negotiators .

Time and patience is the most important assets of foreign firms exercising negotiating

process in China.Many potential investors get frustated since the Chinese ,sometime,are slow in signing of a contract even if the everything has been settled.The Westerners

get impatient waiting for final agreement .Probably it is rather incommodious participating in many stages of negotiating processes for several months.

For swedish Ericsson it took more than two years to conclude an agreement a telecom-