Contracts? Just a start.. E-mail
(10 votes, average 5.00 out of 5)
City Life - Blogs & Columns
Written by David A. Dayton   
Tuesday, 01 December 2009 00:14
No matter how long I’m here, this will always be one of the things that I just can not stand. Maybe I am just too American. Maybe it is just that I hate negotiating the same thing over and over again, but I just hate this part of doing business in China.

Latest example is the landlord of one of our offices—she has decided that “everything in the office is hers since she rented the office to us at “such a low price.”Yea right. Never mind the fact that we have a contract that clearly states that the office was rented “empty” and that all “decorations and furnishings” are the tenant’s (my) responsibility. She wants to start negotiations from the point of “it’s all mine” and “I won’t give you your deposit back” unless we give her all the furnishings. I’m at a loss for words. It’s flat out extortion but it’s also business as usual in China.

So what to do?

Well, we hired a lawyer–Dan, I wish you guys were in Shenzhen. Then we completely stopped talking with her. Now she’s scared and giving us concessions like they were candy.

But I’m just amazed that she’s even got the guts to try to pull off something like this. She treats us, as do many factories, like we don’t know about contracts, legal proceedings and have no recourse buy to work with her on her terms—classic Chinese power play. Most threats are a show. The show is half the battle—if you can win the stage show you’ve got a great chance of getting what you want, or at least more than what you originally contracted for.

If you are ever in a situation where you are scared that you could lose what you’ve already contracted for, remember you have a contract (and it better be in English or you’re probably already dead) and China’s fledgling legal system does give you some rights and you can pursue those to their legal ends. It not too expensive to hire legal representation in China and if you have some representation chances are you will turn the tables on whomever is pressuring you—they’ll claim to have hired a lawyer, but probably have not.

In China most negotiations are never written down so it’s up to you to record everything. And I mean everything! *Side Note—Text messages can be used in court but faxes can’t.* Notes from meetings should be detailed, translated and sent to all parties—if you’re the instigator of these records then you’ve got the upper hand because you know that your Chinese antagonist will most likely not do it. Phone calls to your secretary, to the factory or whomever else, people that phone to tell you that they’ll be late or are changing something in the contract; these are the killer—you’ve got to keep track of all these changes. In addition to conversations, record that you’ve agreed to post-contract as well as what they’ve offered that you didn’t agree to. More often than not what they end up pushing in the end will turn out to be something they asked for but didn’t get in the beginning.

Make sure that you are following the law to the letter. Don’t cheat, lie or sneak you way into the country. Don’t double cross your Chinese partners and don’t play them for fools. If you expect the law to be on your side you had better be on the right side of the law yourself. It is the best feeling in the world to go into a negotiations session knowing that you have been completely honest and have the records to support your position. I’m sure its tons easier for your lawyer too.

NEVER NEVER NEVER change you contract—it’s like opening Pandora’s Box and once it’s open you’ll never get it closed again.

Lastly, wait out those putting pressure on you. Usually demands or changes are made when some party thinks they are in a position of power or thinks that you don’t have time to accommodate changes. If you are in a rush, you may be in trouble. If you are not in rush you can call their bluff.

David A. Dayton is the CEO of Silk Road International (SRI), an U.S.-owned and managed international procurement agency based in China. Click here to visit SRI's Website.

Quote this article on your site/blog! Click here for the embed code!


To create link towards this article on your website, copy and paste the text below in your page.



Preview :
Contracts? Just a start..
No matter how long I’m here, this will always be one of the things that I just can not stand. Maybe I am just too American. Maybe it is just that I hate negotiating the same thing over and over again, but I just hate this part of doing business in China. Latest...
Our valuable Editor David A. Dayton has been with us since Monday, 02 November 2009.

Show Other Articles Of This Author

Do you have a story to share? Do you want to be a ND Author? Send your own story, write about family, friends, life in Xi'an, business, real estate, education, travel, entertainment, write a review, suggest a column and more! In any language! Please include at least one picture about your story if possible, your name, email address, blog-/web-address, so we can give you credit. Go ahead, click here: Submit your Story now and we will publish it and list you as a ND contributor! Alternatively you can send us your story to: xianstories@newdynasty.com.cn

Comments  

 
0 #2 jack holmeson 2009-12-13 03:23
i met more shameless people like these in china than anywhere else.
i always got my right when going to the court in china. china has laws to protect contracts and one should use it. still, why this people like the landlord you described make so much unneccessary stress for their environment even though they KNOW they have no f.... right for/in what they demand!?
Quote
 
 
0 #1 Burberry James 2009-12-10 09:30
i couldn´t agree more david. the mentality of most people here is so incredible ridiculous and absurd! or concerning contracts or in other situations: i have had an encounter with a chinese car driver who almost killed me (i was riding my bike) with his f**** car. he did not respect the red light and almost got me that bas****. well he said, that foreigners in china have no right to drive a bicycle in china, only chinese can!!! therefore it was his right to break the law by not respecting the RED traffic light!! he was completely serious and insisted of being right right right, because he is a chinese and this is china and the whole crap. WTF! well right before my first angry p...towards his f..., the police came by...that saved him ;-) incredible.
Quote
 

Add comment


This Week's Top Stories

More Articles in this Category

Latest Articles in Blogs & Columns

NEW DYNASTY TV - Xi'an Reports, Interviews and Movies

ND TV - Premier Web TV Reports, Interviews, Movies about Expats and Locals in Xi'an/China! This is UNIQUE in Xi'an!

ND proudly presents: Xi'an Models Volume 1

Xi'an Models

Watch Great Movies Online - Right here on ND - For Free!

Watch Great Movies Online - Right here on ND - For Free!

Advertisement

PARTNERS RECOMMENDED
LVZHOU.net
XAENT.com

New Dynasty Comics


Featured

Hotels
Restaurants
Xi'an Models
Partners
People
Business		 Food
Beauty
Sports
Medias
Online Movies
Event Tips

Advertising

Promotions

We want you! - 加入我们!

We're currently looking for some down to earth people who can spare a little time each week to write about anything related to Xi'an, who are eager to share stories, news, insight info and be a part of the most sophisticated and fastest growing Digital Magazine in Xi'an. Whether you're young or old, we'd like to hear from you. Click for more info.

Editorials

Xi'an goes digital
To all readers, subscribers, friends: Welcome to Xi'ans most sophisticated, multilingual digital magazine. We are excited to offer you from today on, 15. June 2009, a new and superior kind of publication in Xi'an and a refreshing new concept. Of course, as with any technology-related... Click here to read the full story!

Skype ND!

Skype ND!

Featured Website

¡XABOO! is a brand new interactive Community Platform for Locals and Expatriates in Xi'an (China).¡XABOO! is an interactive Community Platform for Locals and Expatriates in Xi'an. Click here & register now!

Editor Team

We have a team that works on the articles presented on ND. Please contact us if  you are interested in helping us out with the creation of articles or researching information in Xi'an. Contact:  info@newdynasty.com.cn

Post translation

ND has readers from all over the world and in several languages. If you translate one of our articles please let us know so we can add a link at the original article! Your site and name will be posted as well. Thanks!

Restaurants

article thumbnail Tuscany Restaurant

We are a family owned restaurant and take pride in everything we do. From the fine ingredients we use to the wines we carry, you...

ND Digital Magazine Xi'an - Subscribe now!

ND Digital Magazine Sample Cover
*Sample Image

Hotels

article thumbnail Grand Noble Xi'an

The hotel has 428 well-appointed guestrooms and suites, a full range of dining, recreational and conference facilities. ...

ND on your Mobile Phone Browser

Browse ND from anywhere with your mobile device by typing newdynasty.com.cn in the browser of your device or with the QR code below. You will see changes all the way along on our mobile version. Once we consider it useful and mature we will announce it. Meanwhile, please note that ND Mobile is currently a BETA version. Click here for more Info or here if you want  partner with us.