It is important to understand the differences in culture when doing business abroad. One wrong gesture can lead to a misunderstanding, and ultimately loss business. Prior to entering into a prospective business transaction with a foreign investor, take the time to research their social and business culture practices. Taking the time to research a foreign investor’s culture can save you unnecessary ills and dramatically increase your chances for success.
During my year long stay in Hong Kong, I learned many things about China’s social and business culture. Being a collective and family-oriented culture, I learned that China’s business transactions are facilitated through strong family and friend connections. Unlike the United States, signed contracts and written agreements hold little to no weight. A trusting social relationship must first be formed before business can commence.
As China’s role in the world economy strengthens, Chinese investors are looking to invest in commercial real estate in the United States. Chinese investors are expanding their commercial real estate portfolios in gateway markets like, San Francisco, New York, Los Angeles and Chicago; also purchasing trophy properties like the Waldorf Astoria.
Marcus & Millichap’s Hessam Nadji explaining Chinese interest in the US commercial real estate market.