Make the right connections to get ahead in China

ANALYSIS: Engaging with Chinese culture and customs can be rewarding for firms

ANALYSIS:Engaging with Chinese culture and customs can be rewarding for firms

Doing business in China can be encapsulated in one word, Gerry McQuaid, commercial director of Cubic Telecom told a Sino-Irish business seminar in Dublin.

The word is guanxi, which, in business terms, translates as connections. The seminar, part of the Dublin Chinese new year festival, saw Irish business people share their experiences of working and living there.

They had plenty of advice including: engage with the culture; ensure your business cards are in Mandarin and English; be punctual and always honour your commitments.

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But each speaker’s contribution came back to the same thing, which McQuaid sums up as “respect”.

“It’s a personal relationship and a personal commitment,” he says, adding that these had to be more than just words.

The importance of having a genuine interest in the culture was also outlined by Breiffni Kennedy, of Bord Bia, who says his efforts to embrace the culture through reading English versions of Chinese books, learning some Mandarin and observing the customs, got a “hugely warm reaction”.

For Imelda Hurley, chief financial officer of the PCH Group, doing business in China can be encapsulated in five Cs, the first of which is culture. Showing an interest is very important, she says.

“China has a very long history and our Chinese colleagues really want to see people embracing that culture, not just coming in and trying to use China just as a factory or as a market.”

The next C on her list is “come to China”. Having joined PCH’s Cork operation, Hurley quickly recognised that in order to do the job well, she needed to be closer to the company’s Chinese base.

This in turn involved another of her five Cs: “There is a bit of courage needed but I do think if you push the boundaries out you’d be amazed what can be achieved,” she says.

She rounds off her list with communication and connections. “Your word is an important bond in China: relationships are one of the most important things,” Hurley says.

The importance of doing business face to face was underlined by Rory Williams of Treasury China Trust, a Singapore-listed company with substantial commercial property assets in China.

“You can’t do it by flying in and flying out. Chinese organisations don’t like dealing with people who may be there today but may not be there tomorrow,” he says.

“It’s important to develop deep personal relations and get to know your Chinese counterparts in order to succeed.

“You must respect Chinese culture, the Chinese way of doing things. You can’t impose your Western ways in what is a very rich and long-lasting civilisation.”