Chinese shrewd negotiators

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Canadian Embassy trade counsellor James Holt has two words for Aboriginals interested in doing deals with China: Be careful.

"Chinese people are the best negotiators in the world - they don't give anything away," Holt said at the kick-off of the International Trade Convention Beijing '94 on May 20.

"Every child growing up is taught strategy - strategy that goes toward negotiations."

Connections are very important in China. Business people have to get to know who they need to deal with and establish a friendly relationship with them.

"Friendship won't get you the contract, but you have to have it go get the contract," Holt said.

Business people have to establish what price they have to get for their products and what volume they can produce them in before starting negotiations.

"Be prepared to get up from the table and walk away," Holt advised.

He cited one example of a business man who got up from the table, left his hotel and room number and said he was leaving China in three days. If they wanted to deal, they would have to contact him before then.

They got in touch the next day and the deal was one.

Another solution to the complexities might be to use a company that specializes in acting as go-betweens, such as the Inter Canadian Development Corporation, organizers of the convention.

Ping Tan, Chief Executive Officer of Inter Canadian, said his company first looks at products and services to see if there is a market in China for them. Then they find out if the Canadians want to export or do a joint venture project with a Chinese partner before deciding if they can find someone on China to work with them.

Next, the Chinese representatives would be invited to visit Canada or the Canadians would be invited to China.

"We would hold your hand along the way, give you comfort, ease," Tan said. They would show Canadians how to get a permit, who to talk to, how to set up a company in China and help with the negotiations.

For those who see a potential market in China and are willing to go after it, the rewards are there, Holt said.

"It's like the Wild West - anything goes. You can make a deal but you have to keep your head up."