A former Samsung negotiator with twenty years of experience in China shares his insights on Chinese culture as well as practical tips for doing business with the Chinese. Drawing on firsthand knowledge of the Chinese market, the author guides readers through the ins and outs of localization and negotiation. In China, he argues, a society deeply informed by a Sinocentric worldview, Western-defined global standards won’t get you very far; to succeed in doing business there, a correct understanding of Chinese national pride, among other things, is essential. The author is recognized as a China expert by the Chinese themselves, having even being invited to lecture at the Central Party School, where elite members of China’s Communist Party are trained. His vivid accounts of his own business dealings in China are interspersed with incisive commentary on the definitive elements of Chinese culture for a fascinating read.
Ryu Jaeyun was born in Seoul in 1962. He graduated from Seoul National University with a degree in Chinese Language and Literature. He earned an Executive MBA from Tsinghua University, becoming the first Korean to do so, and completed his doctoral studies at Peking University.
In 1989, he was hired at Samsung Display Devices (today Samsung SDI), and he spent the next 20 years playing an active role in the company’s business negotiations in China. In 1993, one year after the normalization of ties between South Korea and the People’s Republic of China, Ryu, acting in his capacity as assistant manager, conducted negotiations with high-level officials in the Chinese central and local governments and gained permission on behalf of Samsung for the construction of factories for Samsung Display Devices and Samsung Corning Advanced Glass. Ryu thus played a key role in enabling Samsung to set up its first major production base in China, and remained in the forefront in the process of bringing almost all of the other Samsung affiliates?Samsung Electronics, Samsung Electro-Mechanics, Samsung Heavy Industries, and the Hotel Shilla?into China.
In the face of opposition from the Chinese government regarding construction of a Samsung mobile phone factory in the country, Ryu utilized his negotiating skills and secured permission to establish a factory in Tianjin for domestic manufacturing and sales. This was instrumental to Samsung’s current prominence in the Chinese market. Such notable accomplishments helped Ryu rise through the ranks in record time, from assistant manager to managing director in 15 years.
Ryu has lived and worked in Beijing longer than any other employee of a Korean company. During this time, he has been active as a troubleshooter for problems great and small affecting Samsung, as well as for crises of Korea’s people-to-people diplomacy with China. His expertise has earned him the recognition of local Chinese, and he has been asked to speak not only at the Central Party School but also at the State Information Center, the Chinese Academy of Sciences, the People’s Daily, and countless Chinese companies.
Foreword 12
Preface 14
-CHAPTER ONE-
THE CHINESE PARADOX
There’s No China in China
TWO FACES: DRAGON AND PHOENIX
Dragon and phoenix: symbols of Chinese pragmatism 23
Handy strategies for facing the dragon and phoenix 27
CONFUCIAN ON THE OUTSIDE, TAOIST ON THE INSIDE
A philosophical reading of the Chinese mentality 31
The Way vanishes the moment it is expressed in words 34
PUBLIC IS PRIVATE, PRIVATE IS PUBLIC
Feelings come before reason, and reason comes before law 37
Sharing a drink is a chance to spend time together 39
SPOKEN AND UNSPOKEN: THE CONTRADICTORY RULES THAT RULE CHINA
Nuclear submarine: the power of unspoken rules 45
Unspoken rules take precedence over spoken rules 46
CHINESE TACT: WHY BAD NEWS IS NOT SHARED
The green hat taboo 51
Spiteful selfishness or well-intended tact? 53
Working on your cultural literacy 56
DEALING WITH CHINESE TACT
How Chinese tact can result in misleading reports 59
DOUBLE-CHECK AND REVIEW TO GAIN INSIGHT
Get a complete blow-by-blow 64
FREE TO BELIEVE, BUT NOT TO SHARE THOSE BELIEFS
Religion: strictly regulated by the state 69
The Three-Self Church: a unique Chinese institution 71
China’s two-pronged approach toward religion 74
-CHAPTER TWO-
THE CHINESE “US”
Winning the Hearts of the Chinese
WINNERS PLAY BY THE CHINESE RULES
The winners come and go, but the rules remain the same 79
It takes a long time to get to know the Chinese 81
CLIMBING MOUNT TAI AND CROSSING THE YELLOW RIVER
Guanxi: the difference between “us” and “them” 84
A society of people you know and people you don’t 87
FRIENDS: THE ONLY SOCIAL UNIT
The Chinese will do anything for a good friend 91
Friends come before laws and principles 94
It’s in your interest to help friends save face 96
UNEQUAL EXCHANGE: THE KEY TO FRIENDSHIP
Make sure your friends get their money’s worth 100
How to become part of “us” 102
THE FOUR WAYS TO BECOME “US”
The princelings: eighty years of loyalty 106
Complete trust: the best way to win hearts 109
TIPS FOR MAKING CHINESE FRIENDS
The better you know someone, the more you should watch your words 113
Make a network that is both broad and deep 114
-CHAPTER THREE-
THE CHINESE WALLET
Understanding Guanxi Brings China into View
GUANXI: WHAT EVERYONE TALKS ABOUT AND NO ONE UNDERSTANDS
Guanxi: the main guideline for every decision 121
Three confusing characteristics of guanxi 123
GUANXI IS A CURRENCY
Don’t try to mooch off others’ guanxi 128
There’s a toll at each turn 129
Gauging guanxi: learning the true power of your connections 131
GUANXI MULTIPLIES POWER
The wisdom of having a motley crew 135
Don’t get too hung up on rank 137
GIVE YOUR FRIENDS A REASON TO HELP YOU
Guanxi is the door, but rationale is the key 141
An unwritten rule about guanxi that’s easy to miss 143
DO YOU ONLY TURN TO THE BUDDHA WHEN YOU’RE IN TROUBLE?
Learning to recognize true friendship 148
THE BLURRY BOUNDARY BETWEEN A GIFT AND A BRIBE
Gifts are a form of courtesy 153
Give gifts when you meet, become friends, and say goodbye 155
Useful tips about gift giving 158
WHO’S IN CHARGE OF CHINA?
Do the Chinese elite speak English? 162
A brief history of Chinese people studying overseas 164
-CHAPTER FOUR-
THE CHINESE PERSPECTIVE
Effective Strategies for Localizing, Negotiating,and Managing in China
HOW TO BEFRIEND A HIPPOPOTAMUS
In like a lion, out like a lamb 173
If you’re going to play, play to win 174
A Confucian gentleman will wait ten years to take revenge 177
LOCALIZATION: LOST SOMEWHERE BETWEEN CHINA AND THE WORLD
The limits of localization 182
Paying attention to Chinese pride 185
IF YOU ONLY SEE WHAT YOU WANT TO SEE, YOU WON’T SEE CHINA
Who are the real China experts? 191
Building a cart behind closed doors 195
INFORMATION ASYMMETRY CONCEALS CONFLICTING VALUES
Foreigners are fooled by their own ignorance and don’t even try to learn 199
Loyalty means something else to the Chinese 202
PAY ATTENTION NOT TO WHAT IS SAID BUT WHAT IS LEFT UNSAID
Big talk from a local government official 205
Reading in context 207
EACH TIME YOU’RE TRICKED IS A LESSON LEARNED
Getting fooled is an asset, too 210
The Chinese prefer a laid-back negotiation style 211
BUKEQI! WE’RE FRIENDS, SO MAKE YOURSELF AT HOME
What bukeqi says about Chinese culture: in the end, friendship is
about sincerity 215
IT TAKES DEDICATION TO REACH THE FINISH LINE
Foreigners who don’t study 220
On a journey of a hundred leagues, ninety leagues is
just the halfway point 223
HARSH ADVICE FOR FOREIGN BUSINESSES
An eye for recognizing a good horse 227
-CHAPTER FIVE-
CHINESE TIME
The People Who Live in the Past, Present, and Future
CHINESE PATIENCE CAN MOVE MOUNTAINS
Chinese time is long 235
THE PEOPLE WHO LIVE IN THE FUTURE
Tomorrow will be a better day 240
DON’T MAKE GLASS CEILINGS
Don’t kick away the ladder 244
WHY THE CHINESE NEVER SAY THEY’RE SORRY
It’s easier to make someone resign than apologize 247
A historical explanation of the Chinese aversion to apologizing 249
ONE FINAL TIP FOR SUCCEEDING IN CHINA
Don’t assume that you know everything 252
Become a “long-term observer” 255
Conclusion 261
COPYRIGHT 2009 BY ㈜북큐브네트웍스 RIGHTS RESERVED. IF YOU HAVE ANY QUESTION OR COMMENTS.
