Sunday, April 21, 2024

Beware of this Chinese business tool

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Like it or not, a bottle of Maotai liquor is possibly the most important business tool in China – but one that needs to be approached with caution.
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Online horticultural magazine GrowerNews editor Peter Cooper has experience doing business there for more than two decades. Maotai was an inherent part of doing business and so too were chopsticks, he said.

“Any initial discussion on business is carried out in the office but the real talking occurs over food. It’s kind of neutral ground for both parties.”

Not only did each party get the chance to learn more about one another, all the key people in the venture got involved. Iwi members at the Maori agribusiness forum agreed with Cooper’s assessment such an arrangement “sounds like a hui” and was something Maori businesspeople could relate to. But there was also a quid pro quo for the generosity of meal sharing by the Chinese host.

“By showing you some hospitality there is an inference you will do something in return for them,” Cooper said.

“Those of us bought up in a Western culture, we tend to forget this.”

The perils of Maotai were particularly severe in China’s northeast where “they love to drink”. Their maxim was it was “better to lose health than to lose face”.

Maotai has a high alcohol content and is regarded almost as a second currency by Chinese, often used in place of bribe money. The local saying is “those that buy Maotai don’t drink it, those that drink it don’t buy it”.

“Typically in negotiations you will get a lot of what you want to hear, based on building common ground before moving into serious negotiations.”

No was a word rarely heard but the statement “it is inconvenient at this time” was a close replacement.

However, the Chinese would always leave the door open for future negotiations, something Fonterra would welcome after its recent issues, he said.

“The Maori ability to not rush things also sits well with Chinese and taking a long-term view on achieving anything is an invaluable one to take.”

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