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China: One Bed, Two Dreams. Ken Wilcox, Former CEO, Silicon Valley Bank.
Nov 30, 2023
Ken Wilcox, former CEO of Silicon Valley Bank, shares his hard-earned wisdom on navigating joint ventures in China. He recounts the stark contrast between theoretical expectations and harsh realities faced by Western executives. The conversation dives into cultural nuances, the importance of empathy, and the need for flexibility in negotiations. Wilcox discusses the influence of the Chinese Communist Party on businesses and the complexity of maintaining goals amid bureaucratic challenges. His insights are a prelude to his upcoming book, 'One Bed, Two Dreams'.
54:56
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Quick takeaways
- Understanding local partners' true intentions in China is crucial, as their objectives often prioritize political alignment over mutual business goals.
- The fluid nature of contracts in China requires foreign businesses to adapt their negotiation approaches and manage leverage carefully to maintain control.
Deep dives
Understanding the Joint Venture Landscape in China
When entering a joint venture in China, it is crucial to recognize that the expectations of your local partner may significantly differ from your own. As described by Ken Wilcox, the former CEO of Silicon Valley Bank, Western businesses often enter these partnerships believing they have equal footing. However, the reality is that local partners, influenced by the Chinese Communist Party, prioritize their objectives over those of foreign entities. This misalignment can lead to a gradual erosion of leverage for Western companies as they realize the local partner's true intentions.
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