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Serving
Students at
Santa Ana
College and
Santiago
Canyon College
TAIWAN
Business Tips
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Business
Tips
Business
Hours
Business
hours are 8:30 a.m. to noon and 1:00 to 5:00 p.m. Monday through Friday
and 8:30 a.m. to noon on Saturday. Government offices are open 8:30
a.m. to 12:30 p.m. and 1:30 to 5:30 pm, Monday through Friday, and 8:30
a.m. to noon on Saturday.
Note:
Business people may nap between 1:30 AND 2:00 p.m.
Meetings
The foreign
businessperson is expected to be punctual to meetings. However, the
Taiwan businessperson may be late.
Traffic
in Taipei is very congested. Unless your next appointment is so close
that you can get there on foot, plan for long travel times between appointments.
Taxi fare is not too high, but taxi drivers don't speak English.
Its best to prepare a note writing the place you want to go in Chinese.
If you are not in a hurry, public bus transportation is an alternative.
Between
April and September is a good time to visit Taiwan. Many business
people vacation from January through March.
Holidays
2001
Founding
Day
January 1
Chinese
Lunar New Year
January 2-26
Peace
Memorial Day
February 28
Tomb-Sweeping
Day
April 5
Dragon
Boat Festibal
June 25
Mid-Autumn
Festival
October 1
Double
Tenth/National Day
October 10
Dr. Sun
Yat-Sen's Birthday
November 12
Negotiating
Make an
effort to obtain a personal introduction from a bank or through the Commerce
Department, since local contacts are extremely important. The basis
of a business relationship in Taiwan is respect and trust. Time spend
establishing a rapport with Taiwan businesspersons is a good investment.
Emphasize the compatibility of the two firms, the established working relationship,
and the desire to work together. Profits are very important, but
harmonious business relationships are more important.
While
Taiwan may seem very Westernized, the heart of the culture is still very
traditional. Westernization is often a veneer, and the older generation
still retains the decision making leadership role. It is recommended
that a negotiating team include persons with seniority and a thorough knowledge
of the company they represent. It is important to include an older
person; bringing a senior executive shows that a company is serious about
starting a business relationship. Treat the elderly with respect;
acknowledge them first in a group. Wait to be invited before entering
an office, and do not sit until asked to do so. When going through
a doorway, allow older people to pass first. If they refuse, gently
insist upon this point of etiquette.
It is
still rare to have women participate in business in Taiwan. When
women are to be included in the teams, be certain to discuss this with
your Chinese contact to allow time to adjust to the idea.
Business
Cards
Be prepared
to give out a lot of business cards. Your name, company and title
should be printed in English on one side, and in Mandarin Chinese on the
reverse side. Gold ink is the most prestigious color for the
Chinese style. Cards are very important, since they indicate your
rank and are a key to the respect you deserve in their culture. Never
place a person’s card in your wallet and then put it in your back pocket.
Meetings
are often held in an informal sitting area; coffee and tea are served.
At the table, the member of the visiting team with the highest seniority
generally sits in the middle of one long side. The second-ranked
person will sit at his/her right, the third ranked person to his/her left,
and so forth. The Chinese delegation will do the same, so key players
on their team are known. When sitting on a sofa and chairs, follow
the same pattern.
Taiwan
is relatively similar to other East Asian countries. The Chinese
in Taiwan are capitalists with the same motivations for doing business
as the Japanese. Taiwan businesspersons tend to view contractors
as adversaries. When negotiating, be sincere and honest. Humility
is a virtue, and a breach of trust, since trust is a vital factor in business
relationships, will not be taken lightly. Meet face to face as often
as possible, and keep in touch after your trip is over. Most proposals
and potential business partners will be thoroughly investigated.
Taiwan
bureaucrats tend to believe that the penalty for making no decision is
always less than the penalty for making the wrong decision and this attitude
can result in frustrating delays or unreasonable demands on the contractor
as bureaucrats seek to take the safest course of action. Consider
sending your proposals in advance of your visit for your host to preview.
Have written materials translated by a Taiwanese expert; it is not acceptable
to use the simplified Chinese script used in the People’s Republic of China.
At a presentation, recap the major points at the beginning and at the end.
Look for cues that your counterpart did not understand you. Do not
expect him or her to tell you when this happens, since this will cause
embarrassment. Break the information up into small segments with
pauses for question-and-answer periods. Be patient with extensive
questioning. Address the chief negotiator occasionally, even if he
does not speak English.
Business
will tend to take place at a slower pace than in North America or Europe.
Delays are also used as a negotiating tactic. Do not talk about deadlines;
expect to make several trips before reaching an agreement.
Brute
honesty is not appreciated in Taiwan. A direct “no” is considered
rude. Learn to speak in and listen to subtleties. A ‘yes” or
nod of the head may mean “maybe” or “I understand. A “maybe” usually
means “no”. Avoid high-pressure tactics. Be careful not to
embarrass another person, especially in public; if you suspect an individual
does not understand what is being said, ask if they require more information,
not if they understand what is being said. Do not criticize the competition
nor admit you do not know the answer to a question. Modesty
is very important in Taiwan. When given a compliment, politely refute
it and expect others to do the same. Compliment others as compliments
are always appreciated.
Avoid
using your hands when speaking. Chinese rarely use their hands while
speaking and become distracted by a speaker who does. Westerners
are stereotyped in Taiwan as being loud and emotional. Avoid being
loud and boisterous among the Taiwanese/Chinese. They dislike this
behavior, since they interpret strong emotions, either positive or negative,
as a loss of self-control.
Businesses
are very competitive and put heavy emphasis on entry-level skills and one’s
ability to get along in the group. Be prepared to discuss all parts
of your proposal in detail. Bargaining is also a way of life, so
be prepared to make concessions. Be sure to have products patented
or registered in Taiwan to protect yourself against imitation.
Do not
be surprised if you are asked personal questions. You may be asked
how much you paid for something, or what your salary is. These questions
are not considered in bad taste in Taiwan. If you don’t want to answer,
politely explain that it is not your custom to reveal such things.
Be careful
not to overly admire an object belonging to another person. He or
she may feel obliged to give it to you.
Business
Entertaining
Hospitality
is very, very important. Expect to be invited out every night after
hours; this will entail visiting local nightspots and clubs, often
until late at night. Evening entertainment is an important part of
doing business in Taiwan. For this reason, it is best to
schedule morning appointments for late morning.
The largest
meal of the day is in the evening at about 6:00 p.m. Entertaining
is most often done in a restaurant and rarely in a home.
Never
visit a home unannounced; if you are invited to a home, consider this an
honor. Do not discuss business during a meal unless your host brings
it up first. Before leaving, express your thanks and bow slightly.
Send a thank-you note to your host after a meal. It is polite to
reciprocate by inviting your host to a meal of equal value at a later date.
Good topics
of conversation include Chinese sights, art, calligraphy, and family and
inquire about the health of the other’s family. Topics to avoid are
the situation with mainland China and local politics. Generally,
conversation during a meal focuses on the meal itself and is full of compliments
to the preparer. Leave promptly after the meal is finished.
Economics
Taiwan
has a dynamic capitalist economy with gradually decreasing guidance of
investment and foreign trade by government authorities. In keeping
with this trend, some large government-owned banks and industrial firms
are being privatized. Real growth in GDP has averaged about 8% during
the past three decades. Exports have grown even faster and have provided
the primary impetus for industrialization. Inflation and unemployment
are low; the trade surplus is substantial; and foreign reserves are the
world's third largest. Agriculture contributes 3% to GDP, down from
35% in 1952. Traditional labor-intensive industries are steadily
being moved off-shore and replaced with more capital- and technology-intensive
industries. Taiwan has become a major investor in China, Thailand,
Indonesia, the Philippines, Malaysia, and Vietnam. The tightening
of labor markets has led to an influx of foreign workers, both legal and
illegal. Because of its conservative financial approach and its entrepreneurial
strengths, Taiwan suffered little compared with many of its neighbors from
the Asian financial crisis in 1998-99. Growth in 2000 should pick
up a bit from 1999, backed by expansion in domestic consumption,
exports, and private investment.
GNP/PPP(1998
est.): $362 billion; $16,500 per capita income.
Inflation
Rate: 0.4% (1999 est.)
Labor
force: 9.4 million (1997): services, 52%; industry, 38%; agriculture,10%
(1996);
Unemployment
Rate: 2.9% (1999 est.); Population below Poverty Line: 1% (1999
est.)
Export
Commodities: electronics, electric and machinery equipment 52%, metals,
textiles, plastics, chemicals; Export Partners: US 26%, Hong Kong
21%, Europe 18%, Japan 10%, Singapore 3% (1999); Exports: $121.6
billion (f.o.b., 1999)
Import
Commodities: electronics, electric and machinery equipment 45%, minerals,
precision instruments; Import Partners: Japan 27%, US 18%,
Europe 16%, South Korea 6%, Malaysia 4% (1999); Imports: $101.7 billion
(c.i.f., 1999)
Industries:
electronics, textiles, chemicals, clothing, food processing, plywood, sugar
milling, cement, shipbuilding, petroleum refining.
Arable
land: 24%; Agriculture: rice, wheat, corn, soybeans, vegetables, fruit,
tea, pigs, poultry, beef, milk, fish.
Natural
resources: coal, natural gas, limestone, marble.
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