China Law Blog

'Karaoke' may just be the older method of doing things. I'm afraid (or actually happy) to say that these days, just as many deals are 'done' on the golf course.

Substitute 'karaoke', 'golf', etc., for whatever method is needed - but most times, there's something 'extra curricular' that needs to be done, even if it's as simple as a good dinner. But isn't that the same almost anywhere in the business world when big deals are involved?

Those articles might make you feel better. But face it, you'd be much better off if you learned at least one Chinese song. Playing dice doesn't hurt either.

I have a foreign friend who manages a company here in China. He recently mentioned that morale was low and his "workers" just didn't seem motivated. I asked him if he ever held office parties. He said, "Sure, we have an office social every six months." I envision dry cake and fruit punch.

Having fun with your colleagues is not stigmatized so much as in the West. In fact, you might even say the Chinese promote it. Who are we to argue?

I do not do karaoke... I won't go and everyone I do business with knows that. I do not think that it helps really in doing big business in China. 10 years ago when I first arrived in China, yes. But now, no more.

I find that going to karaoke has good results for 2nd and 3rd tier businessmen and selling to real local, small companies but not to top tier businessmen.

Golf helps 100%. But alas and to much chagrin to my grandmother, father and various golf teachers, I never got good at hitting the ball.

Karaoke, whose Chinese transliterated name "Ka La OK" is so much more Anglophonically pleasing, can be whatever you want it to be. It can be a fun afternoon or evening of relaxation and easy talking among colleagues and friends, such as at Party World; it can become the raucous event that leads to further events better left unsaid, when certain other establishments bring in the group of potential attendees to accompany the discussion, singing and drinking. It all depends on where you go for it, and what your purpose is. It can be an informal atmosphere for making deals or resolving disputes, if approached that way. It's also an atmosphere for observing how each person in the room reacts to that particular situation, if certain denizens of the Ka La OK establishment are invited in. In the latter case, it's a bloody expensive way to pass time, unless one is desperate to create such memories.

The WSJ article is a joke. I totally agree with S. Rein, maybe this is how things work with 3rd tier businessmen in 3rd tier cities, but its not how things are done in Beijing/Shanghai. Businessmen would prefer an expensive lunch/dinner and a good bottle of wine or a round of golf instead of a night out at ktv.

Perhaps if you're dealing with factory owners, the ktv way may still be the way to go, but with big business/government, ktv is so 1992.

If you work at a company with mostly Chinese employees, you will end up going to ktv and it can be a good bonding experience with them, but that's different.

Ahem. Though is has been a significant amount of time since I last commented, I can't resist sharing my thoughts and experiences.
After reading both articles, I am convinced that they are not contradictory.
It is always "okay" to bow out of any engagement in China, for any reason. At the same time, how you "bow out" is equally important. While it is certainly true that "top level" people may avoid KTV, and sagely advise other too as well, I for one rarely if ever deal with people at that level outside of meetings or perfunctory dinners.
Yes, "factory owners", particularly those involved in industry, do like to go to KTV. Their "lower tier" managers absolutely love to go, as much as they enjoy having an off-site meeting in another province or city.
I would rather have my toenails pulled out one by one rather than step a single solitary footin T'men Square or the Summer Palace again.
However, my client's frequently arrange for meetings in these places so that the "lower tier" individuals can enjoy a perhaps "trip of a lifetime" for free.
The expense is not overwhelming, and many times the Chinese person(s) do not have an opportunity to enjoy such a trip for free.
Believe it or not, most of my clients realize that this "gift" is not going to influence the person one way or another when it comes down to business. Nonetheless, meetings do tend to go a lot smoother when both sides have had some "team-building" time together.
KTV also serves the same purpose.
Perhaps I don't run in the same "upper circles" as the previous commentators do, but if you have never gone to KTV with a Chinese client who offered, you have missed an incredible opportunity to learn more about your client.
I could go on, but my humble opinion is that when you don't at least go at least once when invited repeatedly, you have lost face. Period.