Business studies Asian flavor – Kommersant FM

Mangas about financiers, industrial history of China and Confucius on business. It seems that new bestsellers will soon appear in the segment of Russian business literature. In any case, publishers are already betting on books about the practices of Asian entrepreneurs. The first company to announce this was Mann, Ivanov and Ferber (MYF), one of the industry leaders. They expect that readers’ interest in non-fiction about Chinese, Japanese and Korean markets will grow as the domestic economy turns to the East. How will studying such literature help in business? And how to do business with new partners? “Kommersant FM” discussed this with entrepreneurs who have been cooperating with colleagues from China for a long time. With details – Ivan Khorushevsky.

Literature about business and Asia last year, judging by publishers’ estimates, was the best-selling book in Russia. However, these two segments existed primarily separately, so the idea of ​​combining them seems not only logical, but expected. Market conditions are quite favorable: throughout the year, officials and banks have stated that they are seeing an increased interest of Russian entrepreneurs in cooperation with, first of all, their Chinese colleagues. And without first immersing yourself in local business etiquette and culture, it is unlikely that you will be able to establish business connections, believes the owner of a trading house in China, Anna Fomicheva:

“As businessmen, the Chinese do what benefits them. Friendship is friendship, but money is separate. This can be expressed by a tougher bargaining position. After communicating with Chinese businessmen, the concept of signing agreements or contracts “on the wing” was born.

Negotiations are ongoing until the last minute, and when the representative is already leaving for the airport to return to Russia, a call comes from the Chinese that he is ready to sign the agreement. But when an agreement is reached, they are very friendly, sociable and not only fulfill their obligations, but at the same time some kind of human contact is felt. It’s a pleasure to work with them when it’s profitable for them, and they are reliable as partners.”

So far, both sides seem to be trying to understand each other, Kommersant FM’s interlocutors note. According to them, although the trade turnover between China and Russia reached a record $218 billion, and domestic entrepreneurs have been working in Asian markets for more than 20 years, business ties between the countries could be stronger. However, it is primarily Chinese businessmen who are approaching rapprochement with caution. They maintain friendly, but not exactly friendly, relations with Russians, says Sergei Klimov, co-founder of the Dolavto auto center:

“By not checking a Chinese company for integrity, you are at risk. Even if you paid 30%, the goods are ready, you must carry out an inspection – come and check the quality. If you don’t check, there will be 50% defective, and maybe 100%.

There is no point in suing them. Judicial practice is such that we even win, we write to the courts in Moscow, but, unfortunately, then it is very difficult to recover all this from the Chinese counterparty. Therefore, here I advise you to work through a trading house, that is, open your own legal entity in China and enter into a contract with it, then you will conduct legal proceedings in China.”

However, this does not mean that Russian businessmen have no right to count on a warm welcome in China. During the visit, they may well be taken to the main attractions, treated to traditional roast duck and dumplings, presented with local porcelain and treated to a tea ceremony. But the progress of the negotiations will most likely be just as unhurried as its pace, says Sergei Dzhan Sha, CEO of the tour operator China Tour & Business Travel:

“This does not mean that you need to beat your forehead and strictly follow Chinese traditions. You just need to follow some generally accepted norms. Even if you didn’t like something, you can’t separate black and white. Sometimes our businessmen do not have enough patience, perseverance, and wisdom to bring the job to the end.

I remember one of the stories when Chery cars just started being imported into Russia. I accompanied the owner of a large Russian holding company that sold cars. We went to the Chinese factory in Wuhu, and he always wanted results. He said, let’s sign the contract.

The Chinese side offered to talk and have lunch first, but the owner of the holding responded that he did not have time. And, unfortunately, the negotiations have reached a dead end. Then I had to somehow agree, apologize, stay for another three days, but follow the program that they outlined.”

According to Kommersant FM’s interlocutors, a personal meeting with partners is preferred in China to any online negotiations. Perhaps the only thing that can confuse Russian guests during live negotiations with colleagues from China is the language barrier: it seems to be there, but at the same time it is there, warns Associate Professor at the Higher School of Translation of Moscow State University. M. V. Lomonosov, author of the book “China for Business” Konstantin Batanov:

“Chinese under 40, if they are engaged in foreign trade, speak English quite confidently. A Chinese partner can speak Russian quite well. But this is not taken as seriously as if they spoke their native languages. Therefore, often, when the parties want to sign some final document, it immediately emerges that they did not agree and perceive the problems differently. Although, it would seem that when oral negotiations were held, everything was in order.”

But no matter how the negotiations go, in order to become a strategic partner of a Chinese businessman, you need to turn into “guanxi” for him. Translated into Russian it means “trusted friend.” And friendship in the PRC is customary to be tested over decades, as, apparently, is the strength of the Russian economy.

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