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Yap schools Jamaicans on the right way to do business with C
Yap schools Jamaicans on the right way to do business with China
Published: Friday | July 20, 2012 Comments 0
President of the Chinese Benevolent Association of Jamaica, Dalton Yap. - File
The way Dalton Yap tells it, doing business with the Chinese is an art that requires concentrated focus.
And if you ask them to make you a product on the cheap, he said, that's exactly what you will get. But, be careful, he warns, because you may find that your order falls short of standards unacceptable to your market or regulators.
Yap, the president of the Kingston-based Chinese Bene-volent Association (CBA) and a businessman who has done business on the Asian continent for years, has urged Jamaicans to be cautious when doing business with overseas partners.
A seemingly good deal can easily become a horror story. But: "If you do your homework, you should not have any problems with the Chinese," he said.
"When you are doing business with Chinese, or anybody else for that matter, there are two things that you need to do: due diligence, and the second thing is caveat emptor - let the buyer beware."
Yap said China's legal system is not as efficient as, say, in the United States with its enshrined commercial laws.
China's system is based on guan xi - that is, based more on business relationships rather than contract, he said.
Yap said before approaching the Chinese for orders, Jamaicans need to research the markets they intend to supply, know the products they want and the relevant prices, and build a good relationship with the targeted supplier.
The relationship building is important to the "trust factor" that can impact the success of your business, he said.
"Again, I will advise you that if you are doing business with China, you must have a good relationship with your business partner in China. That is extremely important," he said.
"You need a good guan xi, you know, a good working relationship with the Chinese. Without this almost nothing is possible, almost. It is good to establish these with your Chinese partners."
Yap said the Chinese, if asked, will deliver the product at the cheapest price requested, but that such products may turn out to be unusable.
"If the man gives you a quotation for $5 and you keep haggling for a lower price you will get it. If you ask for $2 the Chinese will go down there and you will get a $2 product. You will get what you pay for. If he says $5, he might go down to $4.50, but if you keep asking for $2 you will get it," said the CBA president, citing cellotape an example.
"One of the things about the Chinese is that they have the ability to give you exactly what you ask for," he said with a chuckle.
But, he adds, they are reliable with the delivery of orders.
"Once they see the money, you will definitely get your goods right after," he said.
As with many other business transactions, Chinese businessmen are willing to accept a deposit of 30 per cent at the start of the transaction and the other 70 per cent after the merchandise is loaded and ready for shipment.
And, once traders have established a good working relationship with suppliers, they can negotiate credit arrangements, Yap said.
Again, citing the 'trust factor' as well as the minimal level of guarantee in the market, the CBA president advised that local business people find a partner on the ground in China to oversee the dealings and orders to ensure that the "$5 product is delivered and not the $2 one".
"Find somebody who can take pictures, look at actual samples, be there when the items are being loaded, they can inspect the goods before they are delivered and make sure it is exactly what you ordered," Yap advised.
"Spend the extra money to guarantee that you will get what you ordered," he said.
His advice was dispensed at the July 11 forum on 'Doing Business with China', organised by the Jamaica/China Friendship Association.
marcella.scarlett@gleanerjm.com
Published: Friday | July 20, 2012 Comments 0
President of the Chinese Benevolent Association of Jamaica, Dalton Yap. - File
The way Dalton Yap tells it, doing business with the Chinese is an art that requires concentrated focus.
And if you ask them to make you a product on the cheap, he said, that's exactly what you will get. But, be careful, he warns, because you may find that your order falls short of standards unacceptable to your market or regulators.
Yap, the president of the Kingston-based Chinese Bene-volent Association (CBA) and a businessman who has done business on the Asian continent for years, has urged Jamaicans to be cautious when doing business with overseas partners.
A seemingly good deal can easily become a horror story. But: "If you do your homework, you should not have any problems with the Chinese," he said.
"When you are doing business with Chinese, or anybody else for that matter, there are two things that you need to do: due diligence, and the second thing is caveat emptor - let the buyer beware."
Yap said China's legal system is not as efficient as, say, in the United States with its enshrined commercial laws.
China's system is based on guan xi - that is, based more on business relationships rather than contract, he said.
Yap said before approaching the Chinese for orders, Jamaicans need to research the markets they intend to supply, know the products they want and the relevant prices, and build a good relationship with the targeted supplier.
The relationship building is important to the "trust factor" that can impact the success of your business, he said.
"Again, I will advise you that if you are doing business with China, you must have a good relationship with your business partner in China. That is extremely important," he said.
"You need a good guan xi, you know, a good working relationship with the Chinese. Without this almost nothing is possible, almost. It is good to establish these with your Chinese partners."
Yap said the Chinese, if asked, will deliver the product at the cheapest price requested, but that such products may turn out to be unusable.
"If the man gives you a quotation for $5 and you keep haggling for a lower price you will get it. If you ask for $2 the Chinese will go down there and you will get a $2 product. You will get what you pay for. If he says $5, he might go down to $4.50, but if you keep asking for $2 you will get it," said the CBA president, citing cellotape an example.
"One of the things about the Chinese is that they have the ability to give you exactly what you ask for," he said with a chuckle.
But, he adds, they are reliable with the delivery of orders.
"Once they see the money, you will definitely get your goods right after," he said.
As with many other business transactions, Chinese businessmen are willing to accept a deposit of 30 per cent at the start of the transaction and the other 70 per cent after the merchandise is loaded and ready for shipment.
And, once traders have established a good working relationship with suppliers, they can negotiate credit arrangements, Yap said.
Again, citing the 'trust factor' as well as the minimal level of guarantee in the market, the CBA president advised that local business people find a partner on the ground in China to oversee the dealings and orders to ensure that the "$5 product is delivered and not the $2 one".
"Find somebody who can take pictures, look at actual samples, be there when the items are being loaded, they can inspect the goods before they are delivered and make sure it is exactly what you ordered," Yap advised.
"Spend the extra money to guarantee that you will get what you ordered," he said.
His advice was dispensed at the July 11 forum on 'Doing Business with China', organised by the Jamaica/China Friendship Association.
marcella.scarlett@gleanerjm.com