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Bank transfer before shipment

Like many Asian countries, the Chinese place a lot of emphasis on guanxi or your place in a hierarchy of relationships. Although this term is often used to refer to “connections” and “relationships”, its impact is far greater than what these words can describe. It’s all about giving dignity, trust, and respect to someone’s position in a network. They are not defined by rules or written in contracts. It is mostly behavioural and must be learned and acquired.

You won’t get much love or guanxi as an outsider. It takes effort to get it. Guanxi development means that you put a lot of effort into your business relationships so that they extend to your social relationships. People who aren’t used to combining their personal and professional lives might sourcing companies in china find this difficult. Bill is originally from Nantucket in Massachusetts. For his small business, which makes backpacks, tents marquees, sails, and marquees, he’s searching for suppliers of canvas material in China. Because his products can withstand salty sea sprays from Cape Cod, they are loved by long-standing customers. Things have been difficult lately. Because no one wanted to learn how to weave fabric, his sole canvas supplier closed.

Zhao makes a Purchase Agreement, which he then inserts into the third course. Between stir-fry and other dishes, Bill negotiates a lower price per yard, agrees to a minimum order quantity, and sets out the payment terms. After desserts are brought in, Bill signs his first Purchase order!

Bill was blown away by the lavish Chinese banquet and intends to use his Amex card to cover it as a business expense. Zhao insists that he pay for the meal. Zhao is showing Bill respect and “face” by paying for his nice meal and treating him. In the hope that Bill will reciprocate, he does this.

All goes well months later when Bill receives his first shipment. After a few adjustments, he is confident that the quality will be better than his previous supplier. Zhao can weave them in any colour and pattern he wants! Bill was very happy to find a long-term supplier. The new durable material is proving to be a great choice for products and services.

After many back and forth business conversations, Zhao called Bill the next year for assistance. His teenage son wants to get a quality education in America and he asks Bill for advice about high schools in Massachusetts. Bill, a graduate of many schools, is happy and able to assist with the application process.

Zhao and his family are invited to Cape Cod by Bill. He is happy to show them around the Boston area high schools and let them meet admissions officers. Zhao is thrilled and accepts the offer. Bill adds more depth to what was once a business-only relationship. He is returning Zhao’s hospitality in China, and is supporting Zhao and his family. They are in reciprocity.

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