China Update April 7th 2010

Cultural IQ - Fostering Connections, Embracing Diversity

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China UpdatesWebinars bringing you and your business

closer to ChinaApril 7th, 2010Christine Gao


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Today’s Agenda A tale of three cities – Beijing,

Shanghai, Shenzhen Business negotiation in China Upcoming events Q & A, feedback

Fast urbanization since 1980s According to National Bureau of

Statistics Report of Nov.2008, there are 119 cities with a population of over 1 million, 36 cities with a population of over 2 million.


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Shanghai


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Shanghai


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Shanghai is proud to be home to:


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Jinmao Tower, the fourth tallest building in the world


World Financial Center


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10 subway lines, 400 kilometers metro


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The only Maglev train in use in the world.


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History of Shanghai Since Opium War (1840), Agreements were

signed between Qing Dynasty and Western countries to rent costal cities for trade.

Different from Hong Kong & Macao (colonies), Shanghai still belonged to China.

However, within rental property and consulate areas, Chinese were not allowed to enter.


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Shanghai architecture

Mixture of western and Chinese style


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Shanghai Today


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Luxury goods, lifestyle


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Shanghai Demographic 18.9 million population Expats from around the world Immigrants from different parts of

China Local Shanghaiese


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Folk culture and Shanghai people practicality, petty Bourgeoisie, acceptance of western life style, a sense of superiority, sensitive to perceptions of others, delicate life style Professional ethics and attitude to life


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BeijingBeijing first became capital of Yuan Dynasty

in 1267, 743 years from today. Capital of Ming, Qing and People’s Republic of China ever since.

A population of 16 million, Beijing is still the political,cultural and educational center of China.


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Political center Host Double Conference every year

in March Home to government departments,

Ministries Large sum of public servants


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Cultural Center Architecture and cultural legacy left

over by dynasties, generations Beijing unique culture – Si He Yuan,

Foot of Imperial City


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Beijing is home to Forbidden City Summer Palace Temple of Heaven Great Wall (Ba DaLing, Mu TianYu, Si MaTai) Yuan Ming Yuan North Sea, Shicha Sea


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Educational Center More than 100 higher educational

institutions Home to Peking University, Qing Hua

University


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Business center Home to numerous headquarters of

fortune 500 companies Joint venture with Hyundai motor to

produce Sonata and other models


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Olympics and infrastructure development 9 subway lines Beijing Airport Terminal 3, the

largest singe structure terminal in the world


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Stadiums, facilities


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Beijing Guide

Forbidden City the center, Ring Roads surrounding


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Beijing GuideGovernments, universities WestBusiness, commercial center EastOlympic Village, Great Wall NorthUnder-developed area South


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People and life in BeijingBeijing is an immigrant city, but folk culture

is also maintained Hu Tong, Si He Yuan, Old Beijing, Peking duck are examples of Beijing Culture.


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Shenzhen – the Northern city in South China


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Shenzhen demographicsCensus year 2000: 7.1 million population 82.7% immigrants Average age 31 years old (2006)


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South city, North DNA Love pasta not rice Watch CCTV Chinese new year Gala Drink rice wine at dinner parties Love extravagance Love northern dishes Speak Mandarin vs. Cantonese


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Business negotiation Negotiation not only includes that

between Chinese and foreigners, but also between Chinese

Negotiation cannot be avoided Negotiation = bargaining (for

Chinese)


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Business negotiation (cont.)1) Be patient, and learn to enjoy the long

process of bargaining2) Be clear about who has the power (you?

People on the other side of table?) 3) You will have better chances when:

- they need your product/service- price is acceptable- they like you or see you as a friend


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Business negotiation (cont.)4) Research on your customer/client: who is

decision-maker? What role each on the team plays?

5) Invest in relationships, make friends and intermediary

6) Be sensitive to social status7) Be prepared to make concessions on

price (thrift is a virtue in China)


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Upcoming events Canton Fair (Guangzhou), April 15th –

May 5th

World Expo (Shanghai), May 1st


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Thank you!

Documents

China Update April 7th 2010