Shawn Graham | From Politician to Chinese Business Consultant & The Importance of Building On-The-Ground Human Relationships in China

Today on The Negotiation, Shawn Graham discusses his transition from a politician in Canada to a business consultant in China. As the 31st Premier of New Brunswick, Shawn participated in a highly successful trade mission to China which brought an influx of new business for the Atlantic province.

Speaking of the various Canadian business leaders that Shawn accompanied on his trade mission, the former premier refers to the experience as a “baptism by fire”. At the time, China was quickly evolving and rapidly expanding its access around the world. There was huge potential for growth in this emerging market.

Shawn admits that he fell short of how far he could have taken the mission since his first trip to China also happened to take place during his last year as premier. “You need to be in China on a regular basis to cement those [business] relationships.” Beyond simply shaking hands or signing a contract, it is imperative to build an intimate, human relationship with a potential Chinese partner before any business can be done.

What amazes Shawn about the Chinese economy is that it seems to have grown dramatically every time he makes a visit (nowadays he visits up to eight times in one year). There are 30 million Chinese citizens that move into the middle class each year. This means that disposable wealth is on the rise, which means that the Chinese have grown very particular about who they do business with in order to maintain a good income. Shawn has seen many businesses fail because they march in to “do the deal” before establishing a friendship.

For anybody looking to do business in China, it helps to know a few important things. One of them is understanding the challenges peculiar to Chinese companies. As an example, Shawn brings up the ongoing talks to possibly bring Huawei and its 5G technology to North America. Another consideration is the climate. China has had a pollution issue for a long time and cannot accept being penalized for it when North America has been exploiting its environment for profit for over a century themselves to varying degrees. At the same time, one could say that China’s one-child policy was the country’s biggest sacrifice for their environment.

The bottom line, says Shawn, is that “the Chinese are not coming. They’ve already arrived. It’s best to learn to do business with them rather than against them.”