Business Negotiations in China tactics Identifying what each partner brings to the table
One company entered joint venture negotiations with a potential chinese partner. The early understanding was the partner could bring domestic sales rights to the foreign investor. A little research and questioning brought out the realization that the partner was really incorporated in Hong Kong. This relationship would not have produced rights and access to domestic sales. Due diligence and investigation of the benefits offered by the partner paid off in avoidance of consummating a deal that would have only produced ill will and losses for both partners.
If you are looking for a distribution channel, thoroughly investigate the capabilities of the partner. Is he regional or national, how many employees, trucks, and facilities does he have? What do current customers say of his delivery performance? Is there any conflict of interest with competitors either domestically or foreign competition. If your project is sizable, check out his distribution facilities in a number of cities.Identify and qualify specifics around what you want the chinese partner to provide. Then, re-ask and ask again to assure you know what you are buying.
Business Negotiations in China tactics Identifying what each partner brings to the table
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