Learn Chinese customs and China business culture before  doing business with China.

China in your hands? Don't end up with a storm in a tea-cup - get some takeaway Chinese etiquette now.

Doing Business in China by : Neil Payne

China has seen dramatic changes over the past few years that have taken it into the fast lane to becoming a true economic heavy weight. Improved international relations, government reforms, an expanding economy and increased foreign investment make doing business in China a potentially lucrative affair.

When entering into business relations with the Chinese it is a wise move to get some background information on the culture, etiquette and protocol to ensure you maximise your potential. This brief guide to doing business in China offers a few cultural facts and examines their influence on business culture and etiquette.

Confucianism

Chinese behaviour, mentality and world views are influenced by Confucianism. In essence Confucianism revolves around the concept of harmonious relationships. If proper behaviour through duty, respect and loyalty are shown in the relationships between a ruler-subject, husband-wife, father-son, brother-brother and friend-friend, society as a whole will function smoothly.

When doing business in China one sees how relationships are approached and how etiquette and protocol are used to avert conflict and maintain harmonious relationships. Probably one of the most crucial concepts to understand is that of “face”.

Face

Face can roughly translated as ‘good reputation’, ‘respect’ or ‘honour.’ A good understanding of how face works is key to doing business in China successfully.

There are four categories of face:

• Where one’s face is lessened through their involvement in an action or deed and it being exposed. The loss of face is not the result of the action, but rather it being made public knowledge.
   
• When face is given to others through compliments and respect.
   
• Face is developed through experience and age. When one shows wisdom in action by avoiding mistakes their face is increased.
   
• Where face is increased through the compliments of others made about you to a third party.

It is critical that you give face, save face and show face when doing business with the Chinese.

Meeting and Greeting

As the adage affirms, ‘first impressions last’. When doing business in China the Chinese tend to be quite formal in their personal interactions so be sure to make a good initial impression.

When meeting someone shake hands and give a slight nod of the head. The Chinese handshake is relatively limp so try not to be too vigorous as this may be interpreted as slightly aggressive. Address people with any title they may have; if you are unsure stick to Mr/Mrs with the surname.

The Chinese are not keen on physical contact. Be sure not to slap, pat or put your arm around someone’s shoulders. Try and maintain a decent amount of space between you and your counterpart.

Business cards are important when doing business in China and should always be exchanged on an initial meeting. A good touch is to have one side of your card printed in Chinese. Ensure you mention your company, rank and any qualification(s) you hold. When giving and receiving a card use both hands. Always place a card in a case rather than in a wallet or pocket as this shows respect for the card, and therefore the owner.

Building Relationships

Business relationships in China are formal. Everything from emails to phone calls to meetings must be conducted with the utmost send of professionalism. If doing business in China never become too informal and avoid humour. (This is not because the Chinese are humourless but rather jokes may be lost in translation and hence be redundant.)

If you plan to travel to China for potential business bear in mind the Chinese like to do business with people they know or at least known through an intermediary. Establishing a Chinese-based contact is important. They can act as a reference, be your interpreter and navigate you through the bureaucracy, legal system and local business networks.

Giving Gift Etiquette

Gifts are an integral part of doing business in China. They should always be exchanged for celebrations, as thanks for assistance and even as a sweetener for future favours. However, it is important not to give gifts in the absence of a good reason or a witness. This may be construed negatively.

When the Chinese want to buy gifts it is not uncommon for them to ask what you would like. Do not be shy to specify something you desire. However, it would be wise to demonstrate an appreciation of Chinese culture by asking for items such as ink paintings or tea.

Business gifts are always reciprocated. They are seen as debts that must be repaid. When giving gifts do not give cash. They need to be items of worth or beauty. Do not be too frugal with your choice of gift otherwise you will be seen as an ‘iron rooster’, i.e. getting a good gift out of you is like getting a feather out of an iron rooster.

Meetings and Negotiations

Punctuality is vital when doing business in China. Ensure you are early as arriving late is not taken kindly to. Meetings should begin with some brief small talk. If this is your first meeting then talk of your experiences in China so far. Keep it positive and avoid anything political.

Prior to any meeting always send an agenda. This will allow you to have some control of the flow of the meeting. The Chinese approach meetings differently, so rather than beginning with minor or side issues and working your way up to the core issue, reverse this.

Many people doing business in China have noted that the Chinese are tough negotiators. Their primary aim in negotiations is ‘concessions’. Always bear this in mind when formulating your own strategy. You must be willing to show compromise and ensure their negotiators feel they have gained major concessions.

Make sure you have done your homework before doing business in China. The Chinese plan meticulously and will know your business and possibly you inside out.

Body language and movement are both areas you should be conscious of. Always maintain your cool. Losing your temper, showing frustration or impatience will be interpreted badly. Body posture should always be formal and attentive as this shows you have self-control and are worthy of respect.

About the author

Neil Payne is Managing Director of Kwintessential, a UK-based consultancy providing cross-cultural solutions to today’s businesses. They help companies doing business with China in a number of ways including China Cross Cultural Awareness Training and Chinese Translation Services. You may publish and distribute this article provided that it is reproduced in its entirety, unedited and not used to endorse any product or service and contains this text and the link below. http://www.kwintessential.co.uk/cross-cultural/training-china.html