Doing
Business in China
Introduction
The
People's Republic of
Business Practices and Etiquette
Business attire
Very westernized, with men in suits, women in
suits or dresses, with the formality depending on how important the
business event is and how familiar the parties are with each other.
The more familiar the parties are to each other, the less formal the
attire will be.
Business
hours
For most companies: 8:00am-5:00pm (one hour lunch
break). Local variations may occur.
Official Chinese Holidays
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- Duan Wu (Dragon Boat)
Festival (5th
of the 5th month)
- Mid-Autumn Festival (15th of the eighth month)
- Spring Festival (The Chinese New Year) (1st of the 1st month)
Business
meetings
- Greetings
You need to call your Chinese partner with their
title and their status: "Professor Chen", "Mr. Chen"
or Miss Chen", until they tell you otherwise.
The
form of greeting is the handshake. Chinese may also nod or slightly
bow (Unlike the Japanese, the Chinese bow is from the shoulders rather
than the waist). One would then present a business card.
- Exchange Biz card
Always
hand out the card in the position the other party can easily read your
name and title. Use both hands when presenting business cards and cards should also be
received with both hands.
After receiving the card, it will be very nice if you can
quickly remember their name, title, and better yet to recall some professional
achievements about that person. That will immediately plant some friendly
seed in that person’s mind.
- Never sit down first without being led to your seat
unless you are told to pick a seat.
- During a meeting, do not talk all the time. You need
to be very focused on what the other was saying and also what they are
not saying.
The
topics such as weather, food, or hobbies will be good choices to break
the ice.
To
a man, a chat about current affairs, sports, stock market or his job
can usually go on smoothly.
In lots of cases, they will not tell you everything in their
mind, so you have to learn from their body language and the things they
have already said, pay special attention to their questions, because
behind the questions are their real concerns. You need to respond to
their questions seriously and efficiently that shows your sincerity
and ability. Even if you don’t know why the question is asked, try to
answer it honestly. You can try to dig what is going on in their mind
by trying to answer their questions.
Never ask politically sensitive questions, or anything that
may cause them to lose face in public. If you cause someone lose face
in public, you will have to pay big time, they will not forget.
- Do not brag too much about you or your company.
It
can be interpreted to be untrustworthy, incompetent, or someone who
only knows how to talk. Instead, you need to show them real stuff, and
real benefit… then watch and feel how they respond.
- Being late is not acceptable. Interruption is not acceptable.
Negotiation (Chinese are well known tough negotiators)
Business
culture in
Getting familiar with the Chinese culture will help you in a great degree.
When unknown or unsure, always “smile”! It shows you have no ill intention.
- Haggling (Expected to go several rounds, and expect
pushing and being pushed) It is common to get outrageous demands in
the beginning. Chinese are masters at using your exhaustion.
Chinese negotiators will pad their offers with more room
than most Americans would do, sometimes they use outrageous numbers
in the beginning just to see how you react. Also they are very reluctant
to make concessions on price, if they do, usually after long discussions.
The tiring back-and-forth of haggling process cannot be cut
short. Americans tend to seek the truth and decide their bottom line
in the beginning. The Chinese don’t believe they can find the truth
in the beginning; rather, they seek their truth through the haggling
process, by watching your numbers and reactions. Chinese negotiators
are more concerned with the means than the end, with the process than
the goal.
So remember not to change the price too much too quickly
(it seems suspicious to the Chinese), don’t reject everything either
(you are not giving them face). You need to put on a show sometimes
to let them see you are reaching your walk out position.
- American looking
for contract vs. Chinese looking for relationship.
Americans- Win-Win
Chinese- Upper-hand (in control)
Chinese
culture is a group oriented culture; they need to discuss things in
the group. Chinese like to be included in the decision-making
process; they feel honored if the issues are brought to their attention.
That is why a longer time is needed.
- When "Yes" Means
"No"
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Tips:
- Think beyond the short term
-Never push for a result. Do not try
to have Chinese people follow your time schedule. They will be frustrated
or make a decision that doesn’t favor you if they are not truly ready.
- Show it is good for the Chinese
- Control your own emotions
You
might be exhausted, you might have lost all your patients, and you might
be totally irritated. But this is about 1.5 billion people; this is
about the largest opportunities. You
need to have persistence.
Summary:
Business negotiations in
Gift giving
Chinese consider gifts as an important part to show courtesy.
- Small unique gift from your own country
will be well liked.
Small gifts like wine, tea, cigarettes, and candies are welcomed. Fruit, pastries, and flowers are a safe choice. Your good intentions or gratitude should be given priority. Giving big and expensive gifts need to be cautious because Chinese may think you are expecting a favor to be retuned.
- Pay a little attention to the cultural differences.
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Occasions for Red Packets
Traditionally red packets are handed out to younger generation by their
parents, grandparents, relatives, and even close neighbors and friends
during Chinese New Year. They are also popular gifts for weddings and
birthdays. Nowadays giving red packets as a bonus at the year-end by
employers is becoming popular.
Business Food Protocol
Variety
-Regional cultural differences
giving rise to the many different styles of food. There are eight main
regional cuisines:
Each cuisine has its own flavor, for example,
- Food and drink are an important part of the Chinese
culture. People like to discuss about food and how to make delicious
food. They may also be open to trying other food (from other cultures)
that is good to eat; depending on the business or personal setting.
In the old days, people say "Chi le ma?" (Have
you eaten?), instead of saying "Hello". Imaging how important
food is.
If you want
to have a good experience, study a little bit what type of food you
would like and suggest it while you are in
You need to understand that to make a guest eat well and
entertain well throughout dinner or lunch will make the host truly happy.
So don’t be too polite and not to tell them what you desire, be relaxed
and enjoy.
Guests should sample all of the dishes and leave something
on the plate at the end of the meal.
You don't
have to eat everything (you can't possibly anyway, there will be too
much food). But try a little of every dish.
You don't
have to eat it, but as foreign guest, you're supposed to be served first.
If you don't try something, your host will be embarrassed—and most likely,
will put it on your plate for you.
A clean
plate indicates you are still hungry, so they will keep serving you
with food and drink.
Chopsticks
Manner
Don't
point with them at other people's faces.
Don't
lick them.
Don't
stick them upright in the middle of your rice bowl—that's how the Chinese
honor the dead at graves.
Do
not drop the chopsticks it is considered bad luck.
Entertaining is a very important part of doing business
in
Do you discuss business at the dinner table?
- Yes, but you really need to choose the right time. You main goal is to conduct a relationship. It that goes well, any discussion about business will be easy. Be prepared tha your lack of interest in socializing may compromise your deal.
Quiz:
1. What are the lucky numbers for Chinese?
2. In Chinese culture, is it appropriate to write a letter in red ink?
3. After a woman got married,
does she change her last name to her husband’s last name?
4. In
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