In China, yes may mean maybe
By Jim Carbone, Executive Editor, Electronics, Purchasing Magazine -- Purchasing, 4/27/2006 6:00:00 AM
When does yes mean yes? When doing business in China, it’s hard to say, according to a new Purchasing survey.
The survey finds that when dealing with Chinese companies, “yes” does not always mean “yes.” Buyers and supply chain professionals doing in business in China warn that Chinese companies and suppliers may act in meetings as if they understand and agree with what is being discussed. In truth they may not, which can create major potholes down the road. For instance, nodding of the head does not, in fact, indicate that a Chinese supplier can provide the products or services you’re asking about, only that they are listening and following you. “Culturally, Chinese companies and workers do not like to say no,” says a buyer at U.S.-based manufacturer. And another says, “We spent months trying to get out of a supplier what we thought they agreed to in a meeting.” The solution, say most experienced buyers in China, is to get as much in writing as possible and structure meetings so there is a short review or “quiz” at the end of the meeting to confirm everything. Buyers should have some questions in mind to help determine if the supplier has, in fact, understood everything and has a firm grasp of what is needed and when. To read the full story on doing business in China, see the May 18 issue of Purchasing.
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