1. L L R R G G Logistic Resource Group Logistic Resource Group Jim Ritchie Rethinking How We Do Business with China

2. L L R R G G Logistic Resource Group Logistic Resource Group Rethinking How We Do Business with China  I’m no expert… beware of those who claim to be!  Critical things to know  Be clear about your goals and expectations  What’s the objectives  China is moving at the speed of light, expect things will take longer than you think  Make sure you have real commitment  Understand the role of government  Provincial, City, Central Party  Talk to those who have dared to go before you  To early or to late  Talk to those who have dared to go before you  To early you can lose your shirt  To late and you could  Get “serious” advice about FCPA  Governed by SEC, not the DOJ  Understand what “Yes” means in China  Could mean yes, maybe, I’ll think about it, not likely, no  Know how to negotiate and be prepared 2

3. L L R R G G Logistic Resource Group Logistic Resource Group Rethinking How We Do Business with China  Be prepared for an emotional rollercoaster during the process of establishing your beachhead 3 Established Vision and direction is filled with excitement Many will fill your head with dreams of gold Finding your way will surely result in frustration and disappointment….expect it! Take a long-term view of success

4. L L R R G G Logistic Resource Group Logistic Resource Group Rethinking How We Do Business with China  We partnered with a State-Owned company  We acquired the 3 rd largest trucking company in China  We found some “diamonds in the rough” internally  Personnel challenges were significant  We needed to be prepared to spend significant time in China to protect your investment  Be process driven  Made some FCPA mistakes early on  We went slow in order to go fast  It was important to understand the culture… China first, business second 4