Learn Hong Kong customs and Hong Kong business culture before  doing business in Hong Kong.

Made in Hong Kong? You will be if you follow these rules of etiquette.

Doing Business in Hong Kong by : Neil Payne

A British colony until 1997, Hong Kong is now a special administrative region overseen by China. Under this title Hong Kong is guaranteed by the Basic Law to have a relatively high degree of autonomy under the policy of "One Country, Two Systems". For instance, Hong Kong retains its own legal system, currency, customs policy, and immigration laws but when it comes to defence and the diplomatic relations these are the responsibilities of the government in Beijing.

Cultural Influences

For those doing business in Hong Kong it is important to note that the major influence on the business (and social) environment is that of the Chinese. The Chinese population are primarily drawn upon the five major groups of Southern China: 1) The Cantonese, 2) The Fukkien, 3) Hainan, 4) The Chui Chow and 5) The Hakka.

Meeting and Greeting

The traditional Chinese way of greeting is the bow; however as a foreigner doing business in Hong Kong you would not really be expected to follow this protocol. A simple handshake would suffice, possibly combined with a slight bow. Strong handshakes are not really the norm and many Americans and Europeans have commented on the limpness of the Chinese handshake.

If greeting a group it is important to greet the most senior member first. As a hierarchical society it is important to constantly recognise seniority.

Most people you meet should be addressed with their title and surname. If you do know of a professional title (President, Doctor, Engineer, etc) simply use Mr or Mrs followed by the surname. It is always a good idea to try and find out if a title is used.

You will soon notice when doing business in Hong Kong that many Hong Kong Chinese who do business with foreigners will use a “western” name that is easier for them to remember and pronounce.

Gift Giving Etiquette

Gift giving is part and parcel of doing business in Hong Kong. It helps establish and maintain relationships. Gifts are always exchanged between business associates at Christmas and Chinese New Year. A common gift is known as hong boa. This is when a gift of money is given in a red envelope to children and non-governmental staff. New bills are given in even numbers and amounts.

Gifts that are advised to avoid giving are clocks, books, blankets, anything unwrapped or wrapped in blue and green hats. When gifts are received do not open in the presence of the giver. When giving and accepting gifts use both hands. Gifts should be reciprocated.

Entertaining

Entertaining is a critical part of doing business in Hong Kong. Restaurants and banquet halls are usually where one will encounter an eight course meal over which a new relationship is built or a business deal celebrated. In fact, a meal can also be considered a gift so should be reciprocated.

Pay attention to seating etiquette. The guest of honour will always sit opposite the host. The next most important guest will sit to the left of the guest of honour; the third ranking guest sits to the right of the guest of honour.

Chinese tables are usually round and seat twelve people. The guest of honour will sit furthest from the entrance. The host will sit closest the entrance; this is to allow them to better deal with waiting staff.

Meetings and Negotiating

When meeting with a group of business associates always ensure to greet the most senior member first and then the next senior, working your way down the ranks. Before doing business in Hong Kong ensure you bring plenty of business cards with you. These should be presented when meeting. It is a good idea to have one side of the business card translated into Chinese (traditional script). Using red and gold is considered auspicious. Present and accept business cards with two hands and always inspect and comment upon cards.

Make sure you come prepared with materials and presentations as these will be expected. Facts and figures are crucial as supporting evidence but will not be the be all and end all. Remember whenever doing business in Hong Kong to always keep calm, patient and modest in all your behaviour. Avoid confrontation or aggression as this will lead to you losing face and causing a loss of face. Use language diplomatically at all times. Similarly try to avoid directly saying no to anyone, try and use alternative expressions such as, “I will see”, “I will try” or “It may be difficult.”

Negotiations can be long, protracted affairs as details are slowly poured over and analysed. This is normal and rather than trying to add pressure see if more details would be useful. Be aware that during negotiations a senior member of the company may attend but simply as a ceremonial attendee. It is usually the lower ranking attendees who will do the negotiations with you so pay most attention to them.

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