China Expatriate Experience

PiSigma

"the engineer"
First bit of their blog post says they've already paid for a US$100k order and are flying over to spot check on the production. Not quite some random foreigner.

I've toured many factory facilities all over the world (incl. China), both as an existing customer as well as a potential customer and it's always with production ongoing. Not sure why I, as a customer, would want to sight/inspect a factory that is silent and shut down.

Also, while I haven't been gifted a short holiday while waiting on processes, the various bosses have certainly been very creative with their largesse to impress upon me that I am a "valued" customer. The more memorable ones include
- calling a friend who owns a go-kart track to open after hours (like 11pm+) to let our party have a private race with their sales staff.
- hooking me up with a close friend who happens to be a curator at the Beijing National Museum for a private behind the scenes tour of the museum.
- whilst we were in Shanghai, arranging for my wife who likes Chinese tea to visit his relatives in Hangzhou for a short stay in an actual tea farming village.

Doing biz in China is still very much about guanxi and building it.
Agree with this. I regularly visit fab shops and construction yards to gauge their work. It is always while they are working on a contract I already awarded or they are bidding on. And every time our team only visit while they are working, not in off hours. This is when you can see how they really treat safety, problem solving, organization.

Getting swag is not common in Canada, since anything over $20 is basically considered a bribe. But we do get some pretty big gift baskets for Christmas sent to our office to be shared before covid.
 

PiSigma

"the engineer"
This is it in a nutshell really.

There's a difference if you're a simply a process audit guy and if you're the owner/C-suite/Buyer in charge of pulling the trigger on contracts with lots of zeros.

There's a difference if your business with them is 0.1% of their turnover or 10% of their turnover. Even then, there's a difference if your business is in a strategic market for them or not.

The difference shows in whether they meet & greet you, whether they take care of your F&B, how they wine and dine you, who you eventually get to sit and meet with, etc. Even in a trade show, it's the difference between whether you get a table in the main area or a private meeting room away from all the distractions on the floor.


This pretty much sums up. If I give out a $100 million contract to some company, no matter how big, they will bend over backwards for me to meet every demand we ever have. But even small jobs that's only several million is often taken seriously by even big contractors because they know good performance could lead to those big $100mil -$1 bill jobs I'll award out a few years down the line. If they mess up, they get black listed in my books and lose millions in potential work.
 

Godzilla

Junior Member
Registered Member
This pretty much sums up. If I give out a $100 million contract to some company, no matter how big, they will bend over backwards for me to meet every demand we ever have. But even small jobs that's only several million is often taken seriously by even big contractors because they know good performance could lead to those big $100mil -$1 bill jobs I'll award out a few years down the line. If they mess up, they get black listed in my books and lose millions in potential work.
Most definitely agreed. The vendors will always weigh the potential rewards from each potential customer and deal with the delegation accordingly. The Chinese abacus definitely works.

Its kind of funny though, in my experience, the privately owned Chinese companies are usually the ones that go over the top with entertaining the clients, while the state owned guys are more limited by corporate governance, or a fear of getting into trouble, or not being reimbursed for expenses. In fact, the bigger State owned companies will tend to treat you like how fairandunbiased described. The guys at COOEC are definitely arseholes like that since they know they are the big dogs in the house, and sometimes you feel like they think they are the clients instead of contractors begging for work, even when I walk around with a couple 100 millions dollar contract and multiple others in the pipeline for bids. Their attitude kind of piss you off though, even if you are one that strictly operates between the lines.

The worst offenders in this are local arms of small to mid sized foreign companies setting up shop in China. They fully embrace the brown paper bag culture, are alot more liberal with cash and are not under strict corporate governance. You will get alot more than dinner on a trip to their factories.
 

AndrewS

Brigadier
Registered Member
This is it in a nutshell really.

There's a difference if you're a simply a process audit guy and if you're the owner/C-suite/Buyer in charge of pulling the trigger on contracts with lots of zeros.

@FairAndUnbiased

And how do one become management?

2 Key attributes :

1. To be able to look objectively at the business. Then acknowledge what is wrong or could be done better

2. To have sufficient judgement to make correct decisions, in anticipation of what the future will bring. But there is frequently no hard data, whether historical or current. There's only projections, estimates and what you can see in the market today.

And in the realm of technology, historical data is frequently useless because it doesn't reflect current reality.
 
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