by Maria Luisa Ribeiro de Castro Fernandes
CEO at Shopping de Comunicação, Brazil
My first impressions of China, one of the largest economies in the world, come from friends that are familiar with the Asian country. For example, a Tai Chi Chuan teacher from Switzerland and a carioca, who lives in Rio de Janeiro, try to go there as much as they can to learn the best practices from renowned masters to share with their students. An international trader from Petrobras, the largest Brazilian and Latin American company in terms of market value, with a lot of experience negotiating oil and gas in China; a former client and CEO of a holding company that encompasses several sectors, including energy, and represents Chinese companies, investors on missions to visit startups and get acquainted with the business environment. Also, a CEO of an audiovisual company in which I invest and has China as an important partner for streaming and other ventures, as well as a friend married to a Chinese woman that lives in the country for more than 10 years, among others.
I’m keen on innovation because I invest in more than 40 startups and China has the largest number of cities as global innovation hubs. Likewise, I learned from Tai Chi Chuan teachers that China is the home of many respected and skilled masters in this martial art. From the Petrobras executive and through a project I did for the company, the “Petrobras Mission”, I got acquainted with some of the formalities of doing business. The respect and consideration of Chinese businessmen for potential business partners increases when the negotiator understands and shows interest for the Chinese economy, culture, politics, and traditions. He taught me that Chinese businesspeople like to haggle, which requires patience, and recommended always having a price list and offers on hand.
For the executive representing Chinese energy companies, the key for success is objectivity and confidence. In other words, a powerpoint presentation with just three slides: the first introduces the business, the second shows profit opportunities and the third analyzes potential losses. According to him, if all the risks are clearly laid out, Chinese investors don’t mind losing money.
My friend married to the Chinese lady agrees that trust is paramount and told me about a common ritual among Chinese businessmen: getting their potential business partner drunk. “You only gain the confidence of Chinese executives after you drink with them because then you don’t have any filters and you are trustworthy,” he revealed on a trip we made to Santa Rita do Sapucaí, a small town located in the state of Minas Gerais, Brazil, with around 40,000 inhabitants and more than 150 technology-based companies. He came all the way from Asia to this city to take part in Hack Town, one of the biggest innovation festivals in Latin America. According to him, he almost faced a serious liver problem while trying to adopt and getting used to the new practice!
There are many other curiosities about the way each of them and others I read perceive one of the most industrialized countries in the world. For me two words are: trust and objectivity if we want to be part of China’s commercial ecosystem which englobes all emerging countries. Therefore, I’m extremely interested to see the country that made this huge change around the world in person and get my own impressions!
*The views and opinions expressed in the articles are solely those of the individual authors and do not reflect the position of the Secretariat of the Belt and Road Journalist Network.