Review: Selling to China by Stanley Chao

A Chinese American business expert presents his latest wisdom regarding how small trading companies can establish economic links with counterparts in China in Selling to China: A Guide for Small and Medium-Sized Businesses.

The primary tenet for an SMB (small to medium-sized business) to bear in mind, Chao states, is that Chinese and American entrepreneurs have the same goal – to make money. This is especially true since the older “Mao” generation is phasing out, being replaced with what the author calls the “Me Generation” (age 20-30), which is less traditional, and more prepared to make deals.

When Chao consults with American business people, he hears old-fashioned impressions about Chinese dealings, such as that foreign businesspeople must party all night with their Chinese counterparts. Such ideas are for the most part relics from the past, but with certain provisos. If the SMB owner thinks a deal is imminent, he should engage in a few drinking bouts and some karaoke matches, since these are customary. But, as in all dealing with the Chinese, check your facts – don’t rely on gut feelings.

Chao is very good at laying down all of the customs of Chinese business, which acts as a fascinating cultural study whether or not you’re doing business in the country, but will be undoubtedly useful for novices and experts navigating this wing of international business. For instance, he states how the Chinese are expert hagglers, so choose an expert translator because s/he can observe, assess and pick up cultural nuance, as well as speak for the SMB as an advocate of the product.

Born in the US and raised in China, Chao projects notable objectivity and pragmatism. His analysis of the Chinese people provides a sanguine look at a nation scarred by the ravages of revolution, which has infused their business world with a distrustful, cynical mentality that outsiders wanting to do business in the country will do well to recognize. But, Chao emphasizes, the newer generation will be more open to standard, mutually beneficial business practices, so there is more leeway than there has been in the past.

Chao draws on his wide experience by using examples from the many business dealings he has witnessed as a consultant over many years. His stated goal of the book is to assist businesses to encounter real success by offering them an insider’s view of Chinese business culture, and on this front he certainly succeeds. The book is neatly organized, with a helpful summary of numbered highlights following each chapter, as well as several well-constructed charts illustrating important points. This is a second edition, written with input from Chao’s readers to offer up-to-the-minute additions, so the book can be considered a comprehensive overview of Chinese business practices.

The book concludes with a forecast of future business prospects, which he suggests are very good, as more outlets in China seek lifestyle-enhancing products. It is observations like these that make Chao’s book not only very practical but also engagingly readable, even for business outsiders.