Negotiating with Asian Contract Manufacturers

About the Course:

A fool and his money are soon separated. But nowhere as fast--or as thoroughly--as in China.

Westerners beware. Your Chinese partners are not your friends. Your contracts mean nothing. Financial reporting by your Chinese partners is a charade. Your patents, trade secrets and know-how are quaint notions in China. As many Chinese say, "Once we figure out how to make something, we will never buy it from you again."

Most Chinese consider Americans stupid. Considering that almost all joint-ventures fail for the Western partner but result in cash infusions, the receipt of technology transfer and tax breaks for the Chinese partner, they may have a point.

The prospect of contracting with Asian manufacturers is alluring. While the promise of greatly reduced manufacturing costs and vast markets is tempting, the nuances of negotiating and managing relationships with Asian contract manufacturers can be perplexing, frustrating and coffer- completing.

To be forewarned is to be forearmed. Before you begin to negotiate with Asian contract manufacturers, you really should understand some basic tenants of negotiations with the Chinese. If you don't know the answers to questions such as these, stay the hell out of China:

  • What are the risks of genuflecting to Chinese negotiating norms?
  • What are the risks associated with informing your Chinese interlocutors of your travel itinerary?
  • How should you address quality concerns in terms of the Chinese refrain of singling people out? In terms of Mianzi?
  • To what extent are negotiating issues addressed sequentially in China?
  • Will you be respected more if you raise your voice during a negotiation?
  • How much time should you allocate to negotiating in China?
  • What is the significance of China being "a high context culture"?

This webinar also illuminates contract manufacturing issues such as the following:

  • How should you go about qualifying vendors?
  • What is the meaning of quality fade?
  • What should you seek to learn about the possible relationships between prime contractors and subcontractors?
  • How can contracted facilities best be monitored?
  • What kinds of difficulties can arise when switching suppliers?
  • What are some potential remedies for non-performance?
  • Why are Germans often the most successful Westerns to engage Chinese contract manufacturers?
  • What can be done to reduce the risk of the theft of your intellectual property?

Course Leader: Rosemary Coates, President, Blue Silk Consulting

Ms. Coates is the President of Blue Silk Consulting. She is a seasoned executive with an MBA, 25 years' experience in Supply Chain Management, Operations Management, Project Management and Systems Consulting. Prior to BSC, she was a Senior Director at SAP, the Supply Chain Practice Leader at KPMG Peat Marwick and at Answerthink, and a Regional Manager at Hewlett-Packard. Ms. Coates has consulted with global and domestic clients, VCs and PE firms on operations systems and processes. She has considerable international experience and has worked for extended periods in Asia and Europe. Her experience spans a broad range of industries including High Technology, Software, Chemicals, Health Care, Consumer Products, Industrial Products, Food Distribution, Transportation, Publishing, Retail, Oil and Gas. She has extensive knowledge and experience in manufacturing and outsourcing in China. She has authored an Top Seller book: 42 Rules for Sourcing and Manufacturing in China and a new book, 42 Rules for Superior Field Service.

Ms. Coates in a member of the Board of Directors at the University of San Diego Supply Chain Management Institute. She earned a BS in Business at Arizona State University and an MBA at the University of San Diego. She resides in Silicon Valley.

Course Length: Approx.1.5 hours


Purchase Now:

Need help purchasing this course? Please contact Neomi Barazani at 609-919-1895 ext. 100 or at