Doing Business In China What You Should Know

Overview China has the fastest growing economy and the world's third-largest market. Strong commercial growth is accompanied by inflation and social dislocation. The export market is mostly concentrated in few cities along the eastern seaboard. China is one of the world's oldest civilizations, with thousands of years of history, literature and culture.

Overview Courtesy toward guests is a virtue in Chinese culture; Chinese people can be extraordinarily hospitable and kind. Everyday discourse in china can be seen as rude and confrontational. Exporters who overcome the challenges of exporting to china have a huge market.

Let's Make a Deal! You'll find it beneficial to bring your own interpreter. Speak in short, simple, sentences free of jargon and slang. Pause frequently. Before you arrive, have at least 20 copies of your proposal ready for distribution. Presentation materials of any kind should be only in black and white. Generally, the Chinese treat "outside" information with caution.

Let's Make a Deal! Chinese businesspeople largely rely on subjective feelings and personal experiences in forming opinions and solving problems. Since there is such a strong emphasis on hierarchy in Chinese business culture, ensure that you bring a senior member of your organization to lead the negotiations on your behalf.

Let's Make a Deal! "Saving face" is an important concept to understand. Causing embarrassment or loss of composure, even unintentionally, can be disastrous for business negotiations. The Chinese are very keen about exchanging business cards, so be sure to bring a plentiful supply. Ensure that one side is in English and the other is in Chinese.

Let's Make a Deal! Include your professional title on your business card. Present your card with two hands, and ensure that the Chinese side is facing the recipient.

Let's Make a Deal! Not reading a business card that has been presented to you, then stuffing it directly into your back pocket, will be a breach of protocol. In accordance with Chinese business protocol, people are expected to enter the meeting room in hierarchical order. Only the senior members of your group are expected to lead the discussion.

Let's Make a Deal! The Chinese will not directly say "no" to you. Instead, ambivalent answers such as "perhaps", "I'm not sure", "I'll think about it", or "We'll see" usually mean "no." The Chinese tend to extend negotiations well beyond the official deadline to gain advantage. Be patient, show little emotion, and calmly accept that delays will occur. Moreover, do not mention deadlines.

Let's Make a Deal! At the end of a meeting, you are expected to leave before your Chinese counterparts.

Prosperous Entertaining Evening banquets are the most popular occasions for business entertaining. Generally, these events start between 6:30 p.M.-7:00 p.M. And last for two hours. If you are the guest, you should arrive on time. Wait to be seated, as there is a seating etiquette based on hierarchy in Chinese business culture. Generally, the seat in the middle of the table, facing the door, is reserved for the guest of honour.

Prosperous Entertaining The host is the first person at the table allowed to begin eating and drinking. Business is not discussed during the meal. Leaving a "clean plate" is perceived to mean that you were not given enough food--a terrible insult here.

Prosperous Entertaining One important part of Chinese business entertaining is a tea drinking ritual known as "yum cha." If you do not want a "refill" of tea, leave some in your cup. It will be appreciated if you use chopsticks. Try not to drop your chopsticks, as this is considered a sign of bad luck.

Prosperous Entertaining Toasting, usually with beer, is an important part of Chinese business etiquette. Two popular toasts are "ganbei" ("bottoms up!") and "kai pay" ("drain your glass!"). The host of a banquet offers the first toast.

Prosperous Entertaining Tipping is generally considered an insult in China. The meal has reached a definite conclusion when fruit is served and hot towels are presented. Shortly after these items are offered, guests should make preparations to leave. In accordance with Chinese business etiquette, the host will not initiate the guests' departure.

Gift-giving Official policy in Chinese business culture forbids giving gifts If you wish to give a gift to an individual, you must do it privately, in the context of friendship, not business. Valuable gifts should be given to an individual only in private and strictly as a gesture of friendship.

Gift-giving The Chinese will decline a gift three times before finally accepting, so as not to appear greedy. You will have to continue to insist. You will be expected to go through the same routine if you are offered a gift. Giving a gift to the entire company, rather than an individual, can be acceptable in Chinese business culture

Gift-giving Present the gift to the leader of the Chinese negotiating team. Do not get anything that is obviously expensive, so that the company will not feel obliged to reciprocate. If possible, have your gifts wrapped in red paper, which is considered a lucky colour. Pink and yellow are also acceptable colours for gift wrap.

Prosperous Entertaining

First Name or Title? Most people should be addressed with a title and their name. If a person does not have a professional title, use "Mr.", "Madam", "Miss", plus the last name. Address people using official titles such as "General" "Committee Member", or "Bureau Chief" whenever possible. A married Chinese woman usually retains her maiden name; she will not use her husband's name at all.

Business Dress In Chinese business culture, conservative suits and ties in subdued colours are the norm. Women should wear conservative suits or dresses Flat shoes or very low heels are the main footwear options for women. Men should wear suits and ties to formal events; Tuxedoes are not a part of Chinese business culture.

Some Do’s And Don'ts Be aware of all favours done for you and prepare to respond in kind. Establish a trusting personal relationship that demonstrates your respect. Become friends with local influential officials. Avoid unintentional criticism of others. Don't poke fun at someone, even if in fun. Don't be the first to reach for a restaurant bill.