AuthorsDen.com   Join Free! | Login    
   Popular! Books, Stories, Articles, Poetry
Where Authors and Readers come together!

SIGNED BOOKS    AUTHORS    eBOOKS new!     BOOKS    STORIES    ARTICLES    POETRY    BLOGS    NEWS    EVENTS    VIDEOS    GOLD    SUCCESS    TESTIMONIALS

Featured Authors:  Hugh McCracken, iDiana Perkins, iJeff Mason, iClaire Power Murphy, HonDL, iJennifer Miller, iLiana Margiva, iGeorge Carroll, i

  Home > Business/Investing > Articles Popular: Books, Stories, Articles, Poetry     

Greg A Bissky

· + Follow Me
· Contact Me
· Books
· Articles
· Stories
· 3 Titles
· 1 Reviews
· Save to My Library
· Share with Friends!
·
Member Since: Jul, 2007

Greg A Bissky, click here to update your pages on AuthorsDen.




Featured Book
Fly With The Mourning Dove
by Velda Brotherton

The story of a young girl growing up on a homestead in New Mexico after WW I..  
BookAds by Silver
Gold and Platinum Members



Are Chinese Contracts Just Words On Paper?
by Greg A Bissky   
Rated "G" by the Author.
Last edited: Saturday, July 28, 2007
Posted: Saturday, July 28, 2007

  Print   Save    Follow    Share 


If Chinese business does not depend on following signed contracts, what does it depend on?

Are Chinese Contracts Just Words On Paper?


 

Westerners and Chinese have the same business goal: make money. But while the goal is the same the methods used are not. This confuses Westerners in Chinese Asia.

 

The Western method is clear and simple: negotiate a binding contract between both parties. Once signed, the contract defines the future—what will happen and when, and what the penalties are if it’s not followed. In essence the contract becomes the relationship and, as all contracts have an end, also determines the length of the relationship.

 

Chinese view things differently. To Chinese, the way both parties deal with each other over time is what is important. Certainly they will (often willingly) sign a contract, but in their minds it is a statement of what they hope will happen, not a promise of what they will do no matter what. Signing a contract is also a great excuse for a fancy dinner.

 

Chinese see the future as uncertain, or, as a popular Chinese idiom puts it, “Man may propose but the Gods decide.” Furthermore, Chinese see a relationship as never-ending … if both sides act reasonably with each other.

 

Ah, but what does reasonable mean? To Westerners it means, “follow the contract no matter how difficult;” to Chinese it means, “be willing to adjust the contract if the overall situation changes.” The Western definition is based on performance, the Chinese definition on flexibility.

 

Chinese contracts are more than just words on paper but less than the absolute moral and legal commitment Westerners expect. Use a Chinese contract as leverage, not a blueprint. When (not if) Chinese ask you, “How can you ask me to lose money [which will happen if I have to follow the contract]?” try to be flexible. By giving in one area you can ask for consideration in another and, if you view the relationship as an open-ended, give-and-take partnership, what you receive as consideration will over time balance out what you give away by being flexible.

 

It works. Just don’t expect your legal department to understand it.


Reader Reviews for "Are Chinese Contracts Just Words On Paper?"


Want to review or comment on this article?
Click here to login!


Need a FREE Reader Membership?
Click here for your Membership!


Reviewed by suverman mitranen (Reader)
rubbish.
Popular Business/Investing Articles
  1. Kim Kardashian & Elvis Presley's Twitter P
  2. Schwarzenegger Used a James Bond Lifestyle
  3. Schwarzenegger Pays for Cameron's Terminat
  4. Sean Connery Tells His Reason for Success
  5. Frank Sinatra & John Wayne Refused Dirty H
  6. The Movie 'Limitless' Can Empower You
  7. The Power of QuickBooks
  8. Boris Karloff's Work Ethic
  9. Best Books for Shark-Tankers
  10. The Ultimate Book for Freelancers

Free Download - Small Business Manual by Sam Vaknin

Issues in owning and managing a small business...  
BookAds by Silver, Gold and Platinum Members

Deciphering the 36 Chinese Stratagems by Alexander Goldstein

The term 'strategy' has different connotations in the course of its generation transformed into a due implementation. The subject of how such a transformation can be made effective..  
BookAds by Silver, Gold and Platinum Members

Authors alphabetically: A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Featured Authors | New to AuthorsDen? | Add AuthorsDen to your Site
Share AD with your friends | Need Help? | About us


Problem with this page?   Report it to AuthorsDen
© AuthorsDen, Inc. All rights reserved.