Career Catalyst
Succeed in Business
Lionel Laroche
in the
and Susan Morey,
ITAP Canada Understand w h a t i s e xp e c te d o f y o u w h e n
traveling to t h i s b u r g e i o n i n g p a r t o f th e w o rld.
A senior executive of a Fortune 500 com-
pany arrived in China to negotiate a contract worth sev-
eral million dollars with the government. He felt very
confident about his product and its superiority. He
greeted the Minister of Defense, who welcomed him
and then asked him what he knew about China. He
knew little and apologized. The Minister of Defense
replied: You have come halfway around the world to
ask my government to purchase from you a system that
will cost millions of dollars and will be used for many
years by virtually every person in our country. Yet, you
know nothing about our country or us. How could you
possibly meet our needs? I suggest you go home and
learn something about us, and then come back.
The size of the Far Eastern market makes it very at-
tractive to many chemical process industries compa-
60 www.aiche.org/cep/ January 2001 CEP
Far East
nies, and more and more Western (i.e., U.S., Canadian,
and Western European) engineers and managers are
traveling to that part of the world. Many have learned
that business in the Far East is not conducted in the
same way as at home.
This article gives some tips to help smooth your
way for travel to the Far East Japan, South Korea,
China, Vietnam, Malaysia, Thailand, Taiwan, Singa-
pore, and Indonesia. (For simplicity, we will some-
times refer to the Far East as Asia, although Asia actu-
ally encompasses the Middle East and India as well.)
In addition to the general guidance offered here, addi-
tional pointers regarding health issues, body language,
and meals, as well as country-specific advice, can be
found in a supplement to the article on the CEP Web
site at www.aiche.org/cep.
Before you go
Follow the advice of the Chinese
Minister of Defense and prepare for
your trip.
Health. Some parts of the Far
East, including Japan, South Korea,
Taiwan, Hong Kong, and Singapore,
have sanitary standards that are
equivalent to those found in the
Western world. Traveling to these
places does not require any special
precaution.
Others, like China, Indonesia,
Malaysia, Indonesia, and parts of
Thailand, are developing areas, with
sanitary standards that fall quite
short of Western expectations, so
prepare yourself. If you plan to visit
places outside of the major cities,
discuss your plans with your doctor
and get any necessary vaccinations.
Clothing. Unpretentious and
conservative clothing is the rule.
Men are expected to wear coats and
ties; slacks and open-necked shirts
are suitable for summer business
meetings. Women should wear
dresses or pant suits (of subtle col-
ors and styles) and avoid heavy
makeup and dangling jewelry. At a
restaurant or banquet, men should
wear jackets, which may be re-
moved in summer, while women
should wear a floor-length dress or
slacks. Plain and simple is the key!
In the developing areas, wash-
and-wear clothes are best since
laundry facilities are poor. Toilets
are most often squat style, so any
constricting clothes (tight pants,
high heels, pantyhose, etc.) may be
a problem.
Business cards. Bilingual cards
(English on one side, the Asian lan-
guage on the other) are a must. In-
clude a phonetic rendition of your
name to help with pronounciation.
This shows preparation and a genuine
desire to help ease communication.
Obtaining bilingual business
cards is a two-step process: First,
get the English card translated into
the language that you need, then get
it printed. Most large franchised
printing companies can print dou-
ble-sided cards. The translation
needs to be done by reliable
sources; in particular, it is very im-
portant that the title be translated
properly. Many translation compa-
nies specialize in one Asian lan-
guage. Readers interested in getting
such translations can contact the au-
thor to identify the appropriate
translators.
You may need several sets of
business cards, since different types
of characters are used in this part of
the world. For example, you may
need one set with traditional Chinese
characters for Taiwan, another with
Learn
something about
the culture of the
places you will be
visiting.
modern Chinese characters for
China, and a third set with Korean
characters for South Korea. Make
sure that you know how to tell them
apart mark the boxes if necessary.
Gifts. Giving gifts is an impor-
tant part of building relationships in
the Far East. Give a gift to everyone
present, a group gift, or none at all.
When offering gifts to everyone pre-
sent, give them in the order in which
the people were introduced. Present
a gift with both hands. When receiv-
ing a gift, do not open it in front of
the presenter. Never give a gift of
great value until a clear relationship
is established, as this would embar-
rass the recipient.
Western businesswomen. While
there are many women in business
in the Far East (and some occupy
senior positions), Far Eastern coun-
tries are generally male-dominated
societies that are moving toward
gender equality. Foreign women
may gain acceptance over time
usually much longer than it would
take in their home country.
Businesswomen do not bring
their spouses to attend business din-
ners. Aggressive behavior is consid-
ered very unseemly for women.
Be aware that many Asian men
have formed their image of Western
women from magazine ads, televi-
sion, and music videos. Make it
clear that you are interested only in
a business relationship.
Small talk. In order for your
counterparts to be comfortable with
you and do business with you, they
will need to know you as a person.
They will likely ask you how much
money you make, how many chil-
dren you have, or whether you are
married. This is considered small
talk. Other favorite small-talk topics
include sports (primarily soccer,
table tennis, and cricket) and mak-
ing money.
Before you go, find out what cur-
rent events are taking place in the
countries you will be visiting. Learn
something about the places you are
going to, such as their history and
their art.
Meeting the client
Introductions are taken very se-
riously in all of Asia. You need to
be introduced by a respected third
party, who will speak for you in
advance.
The first impression in Asia is
powerful and can make or break a
situation. In Asia, two acquain-
tances can communicate comfort-
ably only after each persons status
is assessed. Strangers do not strike
up conversations. The status of
people who make initial contact is
very important. Dont insult Far
Easterners by sending a junior sales
representative.
Most Asians greet Westerners
with a handshake and a slight bow.
When you shake hands, be sure to
use a lighter, less firm (limp) hand-
CEP January 2001 www.aiche.org/cep/ 61
Career Catalyst
shake than you might at home so
that you do not appear too aggres-
sive. Never give an arm-pumping
handshake or pat someone on the
back. Also, do not attempt a full-
fledged bow unless you have taken
the time to learn the proper form of
greeting for each country.
Dont stand too close and never
shake hands with a glove on or one
hand in a pocket. When you intro-
duce yourself, be sure to say your
full name, title, job description, and
company name, and leave it at that.
Save your friendly outgoing person-
ality for later meetings.
Respect for elders. Age is hon-
ored in Asia and older people tend
to hold the highest positions in the
hierarchy. Hence, greet older people
before others in a group. Pay atten-
tion and converse with the older
person. Stand when an older person
enters a room. If you fail to treat an
older person with respect, your
Asian colleagues are likely to end
the business relationship rapidly.
Communicating
in the Far East
English is not widely spoken out-
side of Hong Kong and Singapore.
When you meet people, do not as-
sume that they understand you; they
may not speak any English.
If they do, they are likely to have
difficulties understanding what you
say if you speak as you normally
would. Speak in simple, short sen-
tences, at a slightly slower pace than
usual, and avoid colloquial expres-
sions (for example, Americans and
Canadians should avoid sports En-
glish). Try to learn some basic
phrases in the local language
people appreciate the effort.
Few taxi drivers speak English,
even in Hong Kong. Carry a hotel
card with its name and address in
the local language for use when
traveling about.
In Asia, language is indirect and
vague, with sentences often left un-
finished. Speech is filled with deli-
cate nuances and delivered with
62 www.aiche.org/cep/ January 2001
courtesy and respect in a soft voice.
Yes often means Im listening research the necessary vocabulary
or I understand, not I agree. To and translate the documents. It will
say no, an Asian may say things like
Lets wait and see or Ill try, but not popular in Asia. Finally, make
it could be difficult. A face-con-
scious Asian is not inclined to do
business with someone he or she re-
gards as blunt, crude, aggressive,
and confrontational.
Body language. Body language
figures prominently in Far Eastern
relationships. People do not smile at
strangers. Smiles are often used to
cover up embarrassment, confusion,
or anger. Yet, while Westerners usu-
If negotiations
break down, do not
formally end them; use
a euphemism like
temporary cessation.
ally become stern when making a
serious point, Far Easterners may
smile or laugh while making a seri-
ous point in order to reduce the ten-
sion or to soften bad news.
In many Far Eastern countries,
continued direct eye contact is con-
sidered rude and threatening. Si-
lence and lack of eye contact mean
things are going well.
The supplement to this article on
the CEP Web site provides more
guidance regarding body language.
Interpretation. Since many Far
Easterners, and particularly senior
decision-makers, have a limited
command of English, arrange to
hire an interpreter or ask that one
be provided. Send as much infor-
mation as possible ahead of time
in particular, provide advance
copies of your presentation (prefer-
ably with speakers notes). This
CEP
will give the translator(s) time to
also prevent surprises, which are
sure the interpreter is fully compe-
tent in your area by requesting a
copy of his or her translation and
having it checked by someone you
can trust.
Business meals
and entertainment
Asian meals may surprise you.
You could be offered dog meat,
snake meat, sea slugs, chicken
blood, raw fish, monkey brains, or a
thousand-day-old egg.
When your hosts offer you a
local delicacy or national specialty,
they are offering you their friend-
ship as well as a sample of their cul-
ture. If you reject this offer, you are
rejecting their culture, their friend-
ship, and them personally. That is
not good!
So, whether it swims, crawls,
flies, or looks at you, taste it. You
may even like it. If you dont, eat a
reasonable portion anyway.
Remember the Asian banquet has
up to 12 courses so eat a little of
each. These dinners last two to two-
and-a-half hours. Always be on time
or early for such an occasion. The
guest of honor enters the banquet
room first. Wait to be told where to
sit. The guest of honor sits at the
center of the table, facing the en-
trance to the dining room and to the
right of the host.
The host offers the first toast. Do
not eat until after this toast. The
guest of honor then reciprocates
with a short toast. You may be ap-
plauded; if so, join in the applause
to express your thanks. Never tell
jokes when toasting.
Asians drink a lot of alcohol
when entertaining guests, except in
Muslim areas. Western women
should not drink alcohol in bars and
in other public places unless Asian
women are present and doing so.
If you are the guest of honor, you
are expected to leave with your
party before the hosts. In Japan and
Korea, an evening of social drinking
often ends in drunkenness, which is
acceptable on such occasions. By
contrast, Malaysia, Indonesia, and
the Philippines do not tolerate pub-
lic drunkenness.
Refusing a drink from a host
could cause embarrassment and loss
of face. Never flatly decline a drink
with no. If you cannot drink alco-
hol, explain to your host that you
have a stomach ailment or other
medical problem and ask for a soft
drink.
Meetings
Meetings are characterized by
long monologues from each side
and endless cups of tea. The host
sits with the most important guest
on his right. Small talk is exchanged
until the foreign side opens the dis-
cussion. You end a meeting by re-
questing the scheduling of the next
meeting.
During the meeting, there are pe-
riods of silence. Give your counter-
parts time to absorb your ideas. Do
not jump in to fill that silence.
Do not ask questions that re-
quire a yes or no answer.
Never force an Asian to say no
he will lose face and quickly
end the relationship. In addition,
refrain from engaging in argumen-
tative and adversarial exchanges,
since it makes Far Easterners very
uncomfortable.
Far Easterners are expected to
downplay their accomplishments.
Therefore, present your company in
a balanced manner. An overly posi-
tive description is suspect and con-
sidered as bragging.
In Asia, personal interests are al-
ways subordinate to the group and
independent expression is discour-
aged. The group is accountable, not
the individual. Reaching consensus
takes a long time, so be prepared for
long meetings and negotiations
ten consecutive days is common.
Negotiating
Technical competence is a pre-
requisite for your negotiating team.
It is best to begin with middle man-
agers and technical experts. Your
counterparts will match whatever
level of management is present in
the visiting team. Continuity and
relationships are important, so al-
ways send the same team to contin-
ue negotiations.
Foreigners should establish the
agenda and get agreement on major
points at the outset. Present your
proposal in detail and back it up
with technical and factual data.
Asians are slow to divulge informa-
tion. Be patient, but persistent.
Be prepared to make sizable con-
cessions. But, do so only at the end
of the negotiations, rather than as
the negotiation progresses.
Never show that you are under
time constraints. Patience is essen-
tial. If the Asian businessmen know
that you are under pressure to return
home with a signed agreement, they
will use this to their advantage in
extracting concessions. Senior exec-
utives should be brought in if need-
ed to speed up approval or break an
impasse.
If negotiations break down, do
not formally end them; employ a eu-
phemism like temporary cessation
to save face. If the deal falls
through, do not speak badly of your
Asian counterparts, because you
may want to do business with them
in the future.
After the deal
In the Far East, a contract is
not considered binding! Asians view
a contract as a draft subject to
change. They are more interested in a
strong commitment of cooperation
than in a formal legal document. This
implies that they may come back at a
later date and ask to renegotiate some
of the terms based on how things
progress. While this may surprise
you, keep in mind that you may also
ask to renegotiate the contract.
Concluding thoughts
Doing business in the Far East is
not easy for Westerners. For a very
long time, mixing with foreigners
was discouraged in China, Japan,
and Korea. Among Chinese, for-
eigners are often called foreign
devils or barbarians. Dont take
it personally!
Building relationships and doing
business successfully in the Far East
means making a long-term commit-
ment. It usually takes years to create
a partnership, set up a plant, or sell
products in large quantities. It re-
quires a major commitment of time
and resources, and a solid knowl-
edge of the Far Eastern way of
doing business. CEP
< Discuss This Article! >
To join an online discussion about this article
with the author and other readers, go to the
ProcessCity Discussion Room for CEP articles
at www.processcity.com/cep.
L. LAROCHE is president of ITAP Canada, a cross-
cultural training and consulting organization
located in Toronto, Ontario (Phone: (416) 248-
4064; E-mail: itapcanada@home.com) and a
licensee of ITAP International, a U.S. cross-
cultural training and consulting company
located in Princeton, NJ. He received his
doctorate in chemical engineering from the
California Institute of Technology. He is a
member of the Association of Professional
Engineers of Ontario.
S. MOREY is a senior trainer with ITAP Canada.
For the past 18 years, she has provided
international consulting services to
businesses in South America, Asia, Canada,
the U.S., and Europe. She received an MA in
mathematics and education from Duke Univ.,
and is currently pursuing a PhD in global
human resources development at the
Virginia Commonwealth Univ.
CEP January 2001 www.aiche.org/cep/ 63