They call it the "Chinese squeeze".

DAVID SHIPLEY
Telegraph-Journal

After months of painstakingly building a relationship - including a trip to an all-night karaoke bar - a Canadian firm and a Chinese company have negotiated a major business deal.

But just as the paperwork is completed and the Canadians are set to go home, the Chinese ask for further concessions.

The Canadian firm faces a tough decision since it wasn’t prepared for such a move.

"You always have to make sure the deal is a bit better than what you want," says Mike Tilley, chief executive officer of CanLink Global.

"You’ve got to make room for (the squeeze) to happen."

While in the Western world a popular business mantra is location, location, location, Tilley said in it’s "concession, concession, concession."

CanLink, a Saint John-based international trade and investment firm, specializes in making connections between Canadian and Chinese businesses.

It has helped to land several major deals, including a $10-million flight training contract for the MonctonFlight College, which could be worth as much as $60 million if the Chinese exercise all of their options.

On Tuesday, CanLink hosted a half-day seminar in Moncton that highlighted reasons for doing business in for New Brunswick business people and local government officials.

The seminar was sponsored by Enterprise Greater Moncton.

In addition to short classes on Chinese business etiquette and an overview of the Chinese market, the seminar also re-enacted a formal Chinese business meeting.

The seminar also covered proper business etiquette, plus some negotiating tactics used by the Chinese and how such manoeuvres can be countered by Canadian firms.

The key to success is in is being thoroughly prepared, said Tilley.

Over the past few years, Tilley and other CanLink representatives have logged more than 50 trips to the Middle Kingdom.

Tilley said he learned an early hard lesson about doing business in from an experience with a previous employer.

During a trip to to sell software, his company was told a translator would be provided.

When the company delegation showed up for the meeting with a Chinese firm, the translator turned out to be an information and technology worker with a shaky grasp of English.

Worse, the translator stood to lose his job if the Chinese company chose the software being offered by the Western firm.

"We ended up arguing with him. He was death for us," said Tilley.

The lesson was to make sure to make your own arrangements, from translators to transportation, he said.

A good translator can help your firm by being aware of your key selling points and how far your company is prepared to go to make a deal, said Tilley.

The China Effect seminar in Moncton also focused on the importance of developing relationships.

In China, such relationships must be established before businesses will consider doing a deal.

"It’s tough breaking in - but it’s attainable," he said. "Do the all-nighters, do the karaoke bar, meet the wives and husbands," he said. "You really, really need to build these relationships."

Most importantly, relationships with Chinese partners must be nurtured and sustained, said Tilley. Too many companies make a trip to , establish relationships and never return.

"You can’t do it quickly and easily. It takes time and effort," he said.

Tilley said the government of New Brunswick, which has already developed a strategy for , should implement its plan.

The province should also consider how it can help its three major cities better co-ordinate efforts to attract Chinese business and immigrants, he said.

Eric Pelletier, manager of investment attraction and community relations for Enterprise Greater Moncton, said the China Effect seminar was useful for business and municipal leaders.

"This training certainly gives great insight into Chinese business culture and emerging markets," he said. "It’s an eye-opener."

Moncton city councillor Merrill Henderson said he wished he’d attended the seminar prior to his first trip to with a delegation of local leaders and businesses.

"It’s certainly broadened my knowledge considerably," he said.