1. Business Customs in China
By David Ledezma and Walter Hoang

2. Face Face is the concept of honor and respect in front of one’s peers.
There are four types of face:
Losing 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's being made public knowledge.
Giving face: When face is given to others through compliments and respect.
Saving face: Face is developed through experience and age. When one shows wisdom in action by avoiding mistakes their face is increased.
Showing face: Where face is increased through the compliments of others made about you to a third party.
It is important to give face, save face, and show face.

3. Meeting and Greeting
Start with shaking hands and a slight nod of the head; Be sure not to be overly vigorous when shaking hands .
Keep physical contact to a minimum; Be sure not to slap, pat or put your arm around someone's shoulders.
Have formal and attentive body posture. This shows you have self-control and are worthy of respect.
Business cards should have one side translated to Chinese and printed in gold ink. When receiving a card place it in a case rather than in a wallet or pocket.
The Chinese will see vigorous hand shaking as aggressive.

4. Building Relationships
Establish a contact to act as an intermediary; this allows you to have a reference, an interpreter, and help to navigate through the bureaucracy, legal system and local business networks.
Avoid humor as jokes may be lost in translation.
You are representing your company so keep your dealings at professional level.

5. Meeting and Negotiations
Meetings should be booked in advance; avoid national holidays especially Chinese New Year.
Be early to meetings; being late is seen as an insult.
Begin meetings with small talk; try to keep it positive and avoid anything political.
Send an agenda and start with the core issue.

6. Meetings and Negotiations Cont.
Show compromise and ensure their negotiators feel they have gained major concessions.
Above all, be patient and never show anger or frustration. Practice your best 'poker face' before negotiating with the Chinese.

7. Gifts
Gifts should always be exchanged for celebrations, as thanks for assistance and even as a sweetener for future favors. Don’t give gifts without a good reason or a witness.
Do not give cash; gifts should be items of worth or beauty. But do not be too frugal with your gift.
Do not be shy to specify something you desire. But you should demonstrate an appreciation of Chinese culture by asking for items such as ink paintings or tea.