What should you know about Taiwanese business culture?
The Taiwanese are well exposed to and aware of other business cultures, due to their open business market. They are quite familiar with the ways of the West in terms of attire and speech. Their primary languages, however, are Taiwanese and Mandarin.
Modern Taiwanese businessmen are relatively flexible, not overly conventional and neither are they easily offended. But some traditional factors such as their greetings, respect and superstitions are typically Chinese in nature, and important enough for us to note.
The Taiwanese are subtle and kind natured but shrewd businessmen. They appreciate foreigners who are interested in their country and culture. Come prepared, be respectful and dress neatly to make a good first impression.
What are the right negotiation tactics in Taiwan?
The Taiwanese are highly business oriented. The following guidelines will help advance your prospects:
- Negotiations are better conducted as a team as Taiwanese business people are highly skilled negotiators to be handled by just one person
- Business is a serious matter in Taiwan; keep the mood quiet and sober
- Schedule meetings a few weeks in advance and provide details of your team including names, titles, roles, and other relevant information to the other party
- Business cards are essential; if possible, have one side of your card printed in Chinese
- Presentations may have to be made at different levels of your prospective customer’s organization; ensure they are relevant to each level
- Build a strong trusting relationship; this makes information exchange and negotiations easy
- Prepare for some hard bargaining
- Small loose ends can become points of contention during negotiations in Taiwan; therefore, have a team negotiating strategy in place to address possible issues that could come up
- Lastly, initial meetings over a daytime meal can prove to be good ice-breakers
How much is the contract worth in Taiwan?
Post the negotiation process, it’s best to get an official contract signed. Taiwanese contracts are made to facilitate the business process. In fact, a foreigner can even fully own a business in Taiwan!
Nonetheless, ensure you understand all the clauses before signing with the help of local legal advisors.
What are pricing policy, pressure, and restraints in Taiwan?
Since Taiwan is an export-oriented economy which has secured its place in the global industrial chain, the nation has been able to keep a control on its pricing by saving on tariffs and production. It’s highly influenced by Mainland China.
Taiwan’s legal system
The legal system in Taiwan is based on civil law.
The arbitration and litigation processes in Taiwan
Even if disputes go to court, cases are settled within a year through an efficient legal system. Legal fees, when compared to more developed countries, are at moderate levels. Court rulings are enforced quickly and effectively. Litigations are often settled within the year of filing and judgements are implemented quickly.
Arbitration in Taiwan is based on the Republic of China Arbitration Act of 1998. Organisations like the Chinese Arbitration Association, Taipei conduct arbitration for parties in dispute willing to submit to such arbitration processes. Arbitration awards are binding on the parties; they typically conclude within 6 months of initiating proceedings and cost less compared to full-fledged legal proceedings. All proceedings are bound by confidentiality.
Effective negotiation skills are essential for any business to thrive in Taiwan. A business partner can assure preferred outcomes and assist you in directing your efforts productively in Taiwan.