Boyden: Five Things to Know When Negotiating Business Deals in China

Boyden's Insights page features this article that gives foreign companies five tips when negotiating with China:

• Make it personal. Play up any connections with individuals in the would-be partner company. For example, shared "dialect groups" can be a good gateway to partnership connections.
• Break China into pieces. Firms should analyze the country by segments, as spending habits vary. Otherwise they miss the market.
• Draw a boundary. If a mere toehold in China is what you're after, a short-term deal might work.
• Learn liabilities. A Western company that agrees to an acquisition by someone in China should know the buyer's past.
• Know the role of the government. If China and foreign governments consider each other strategic rivals, investment authorities on both sides will keep a close eye on any major tie-ups.

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