Foreigners from Europe or from the US often have a hard time dealing with the way business is conducted in China. Understanding cultural differences is already difficult. Addressing them effectively is the most difficult.

I started thinking about it after reading a conversation on the China Law Blog Group, on LinkedIn.

(By the way, if you have a LinkedIn profile and you have a certain interest in China, go and subscribe to this group now. The discussions are all of the “what do you think of this” type. Nothing like the “who is looking for the service I sell” crap of other groups.)

So, here are a few extracts from a recent conversation:

Someone asked this question:

How do YOU cope with the Chinese way of doing business?

I’d like to know what y’all think, not get tips and advice… I just like to know, because I’m curious.

I read this question after an unpleasant discussion with a supplier of one of my clients, so here is the comment I wrote:

Stay calm whatever BS they tell me, be patient in re-explaining the requirements that I already sent them by email, and let their customer bang on their head if they deserve it. I got into a few ugly confrontations in the past that got personal (as everything tends to get here), and the most important is to ensure that it does not ever happen again because it’s the least effective solution.

I have to admit, other members of the group offered much more interesting insights. Here are a couple of good excepts, from two different commenters:

The Chinese way of doing business tries your patience if you think linear and get attached to the idea of things happening in a certain way. If you spend enough time in China – especially if you show up when you’re only 21, like I did – the way people do things “back home” starts to look rigid, fueled by premature ideas and prevailing, often artificial sense of urgency.

However, in my experience here in the United States, I’m often surprised by how similar things work in both cultures. Maybe you are from a different country, but in America, many westerners do not fit into the stereotypes we Chinese have about them. For example, it’s not uncommon for businessmen here in US to beat around the bush, not saying exactly what they think – not that they are insincere, but it’s a business strategy, especially when the trust is not there yet or there are conflicts of interest. Poor planning and execution are not rare. No offense – this happens everywhere. It’s also common in US for businessmen to take their clients or associates to dinners and pay for them.

If you are already logged into LinkedIn, click on this link to join the group…