China is believed to have surpassed the USA in terms of GDP based on purchasing power parity (PPP), becoming the largest in the world by this measure, according to a report by RT citing IMF estimates.
PPP is recognized as the best way to compare the size of economies rather than using volatile exchange rates, which rarely reflect the true cost of goods and services. Thus a trillion US dollars are worth a lot more in China than in the US.
With all these breathtaking Chinese economic developments it is important for us Africans to understand the right business approach/strategy when dealing with a Chinese man. Annie Mebaley, a Gabonese writer, highlighted in an article about all you need to be aware of when dealing with a Chinese businessman or woman (although they are always men).
Forget about compromises, he wants to win big
Chinese entrepreneurs in Africa will start business negotiations at an astronomical price, sometimes 10 times higher than what they are actually expecting to close the deal for, and if they can get away with it, they will. Chinese businessmen (they’re usually men) always seem to want the bigger part of the cake and will welcome a result that makes the other party involved – you – miserable. Forget about compromises and mutual benefits; look for the situation that profits you most, so that ultimately you always end up falling somewhere close. Because that’s what your adversary is doing.
Don’t send someone on your behalf
Keep in mind that his ability to understand better and faster the environments in which he operates has made the Chinese man and his international operations exceptionally successful. This is the reason it will always be safer for you to be physically present when the potential for profits and complementary benefits are discussed. Send a representative and your future Asian partner will regard this as a lack of consideration for the opportunity at hand, or as an incredible occasion to double his own interests using the cub you sent him. Delegate and your business will grow on his preferred terms rather than yours.
Keep the conversation simple
Topics such as Chinese politics, Taiwan, communism, government failures or human rights are usually not welcome in discussions. If you criticise the country, you criticise him and all the other nationals. In most cases, he will return the favour and avoid the panoply of possible subjects to engage about Africa’s own suspicious affairs.
No, you are not his ‘buddy’
The Chinese businessman is incontestably not in Africa to enjoy the taste of the local beers or have a good time with our single-and-hoping ladies, even if he happens to enjoy these while he’s here. Remarkably, the three main objectives he set himself when he first set foot on a new territory never leave his mind: profits, profits and profits. Therefore, when dealing with him, trying to become buddies, using inappropriate humour, getting personal or displaying gestures of affection will most likely result in you being awkwardly rejected or seen as a fool.
It’s all about the last man standing
Our consociates from Eastern Asia look forward to these additional hours of negotiation to make you weak, somnolent, slow and ready to sign anything. Don’t let that happen to you and begin with the end in mind: Coming out v-i-c-t-o-r-i-o-u-s. Get physically – coffee is your friend – and mentally ready for the war of the minds, and don’t give up until they do! Beware, this may take all night. Getting angry in front of a Chinese man means losing your credibility, and wielding your physical strength will only be perceived as weakness.
They look forward to these additional hours of negotiation to make you weak and ready to sign anything.
Translators are worth their fees
Establishing an effective communication plan during negotiations for the writing of legal documents is imperative, to avoid the ‘little mistakes’ that could change the substance of an entire proposal. Do not expect a translator suggested by your Chinese adversary to have your back. Find and hire one yourself.
Giving, keeping and losing face
Anytime you feel the urge to make negative remarks to a Chinese businessman, wait to be in private. You may lose a great strategic partner by exposing his flaws in front of other characters. This ranges from ordinarily inoffensive sarcasm to pointing a finger at a mistake he may have made. Remain appropriate.
Giving gifts
In an article by Andiamo, you must ensure that you give a gift that is deemed appropriate; giving a very expensive gift may be considered a bribe in China. Be aware that clocks, straw sandals and handkerchiefs all symbolise death (hey!) so obviously DO NOT give them as gifts! It is also customary to decline a gift three times before accepting it, so make sure you keep insisting and also mimic this if someone offers you a gift.
