International Business / SPOTLIGHT ON TAIWAN : When Doing Business There...

Taiwan, isolated diplomatically since 1971, when the United Nations accepted the mainland government as China’s legitimate representative, has nonetheless developed one of the strongest economies in the Asia-Pacific region. U.S. companies will find Taiwanese executives easily adaptable, but they should be aware of strong Chinese cultural influences on the way business is conducted.

DO:

* Work with Taiwanese partners on joint venture deals. It helps to cut through cultural barriers. As in any country, seek out partners with similar goals and interests.

* Make appointments about a week in advance. If you plan to meet with government officials, allow more time as a sign of respect.

* Use lawyers who are registered in Taiwan for court cases. Foreign attorneys can draft legal contracts, but local lawyers are preferred. Taiwan’s commercial laws reflect U.S. and European influences but are slightly different.

* Draft contracts in Mandarin Chinese, the official language. English can be used if both parties agree to it, but an official Chinese translation should always be available because the Chinese document will be used to adjudicate any dispute.

* Use taxis in major cities, such as Taipei, where traffic congestion presents major problems during peak hours. As in New York, taxis are easily hailed from the street.

* Expect to conduct negotiations in English. Though Chinese is the official language, many younger executives have been educated in the United States and are familiar with American business culture.

DON’T:

* Don’t take disputes to court right away. In fact, contracts should specify how disputes should be resolved. The preferred way to handle a business conflict in Taiwan is through arbitration.

* Don’t rely only on foreign accounting firms. The government recognizes only those reports filed by accountants registered in Taiwan, because accounting standards are different.

* Don’t be upset if business associates are late for appointments, especially in Taipei. Traffic jams commonly cause delays, and business executives usually have several appointments during the day.

* Don’t be surprised when your host uses his or her chopsticks to pick up food for you during a meal. It’s considered polite in that culture.

* Don’t attempt to drive to appointments between cities, because cities tend to be far apart and traffic jams on highways can double traveling time. Fly instead. Domestic airlines have vastly improved their intercity schedules in recent years.

Sources: Benjamin Hsu, special assistant, commercial division, Taiwan’s Coordination Council for North American Affairs in Los Angeles; Price Waterhouse.