China business etiquette is defined as a set of manners that is accepted or required in a profession in China. Often upheld by custom, it is enforced by the members of an organization. Those who violate business etiquette are considered offensive. In the course of operating business, we will come into increasingly frequent contact with Chinese business people and officials. As the saying goes, “Do in Rome as Rome does”, when you go to China to do business, you should learn something about the business etiquette and culture in China.
The following are some short guide of China business etiquette which is adopted in China:
Meeting & Greeting
When doing business, businessman always involves meeting and greeting people. In China, meetings start with the shaking of hands and a slight nod of the head. Be sure not to be overly vigorous when shaking hands as the Chinese will interpret this as aggressive. The Chinese are not keen on physical contact – especially when doing business. The only circumstance in which it may take place is when a host is guiding a guest. Even then contact will only be made by holding a cuff or sleeve. Be sure not to slap, pat or put your arm around someone’s shoulders.
Body language and movement are both areas you should be conscious of when doing business in China. You should always be calm, collected and controlled. Body posture should always be formal and attentive as this shows you have self-control and are worthy of respect. Business cards are exchanged on an initial meeting. Make sure one side of the card has been translated and try and print the Chinese letters using gold ink as this is an auspicious color. Mention your company, rank and any qualifications you hold. When receiving a card place it in a case rather than in a wallet or pocket.
Building Relationships
Relationships in China are very formal. Remember, when doing business you are representing your company so always keep dealings at a professional level. Never become too informal and avoid humor. This is not because the Chinese are humorless but rather jokes may be lost in translation and hence be redundant. When doing business in China establishing a contact to act as an intermediary is important. This brings with it multiple benefits. They can act as a reference, be your interpreter and navigate you through the bureaucracy, legal system and local business networks.
Decision Making
The biggest specific difference between Western and Chinese business culture is in decision making. Quick decisions are alien to the Chinese. Rapid decision making, incorporating quickly gathered and processed information is a sign of an aggressive, highly competent manager in the West. But to the Chinese, haste is the sign of an idiot.
The Chinese prefer to deliberate longer, even on decisions that might take Western managers five minutes, says George Koo, who has facilitated joint ventures between Chinese and Western companies since 1978 and is currently a senior consultant at Meridian Resources Associates Inc. in San Francisco. Discuss the issue, ask for feedback and explain your decision’s rationale, he advises. This way, the staff will be more accepting and respectful of the decision.
The Chinese want to be included in the decision-making process at a degree of collaboration that to a Western manager may seem unnecessary for relatively simple points but is nevertheless important in this culture. “A snap decision to them is an insult,” adds Richard Loi, a Singaporean who is managing director of the UPS Parcel Delivery Co. in Beijing, United Parcel Service of America Inc.’s China joint venture. “They want to feel honored that you bring issues to them and ask what they would do. Even if you think it’s a simple decision, mull it over and talk to them about it.” The results-buy-in, compliance, good feeling–will be worth the extra effort.
Meetings and Negotiations
Meetings must be made in advance. Preferably some literature regarding your company should be forwarded to introduce the company. Try and book meetings between April – June and September – October. Avoid all national holidays especially Chinese New Year.
Punctuality is vital when doing business in China. Ensure you are early as late arrivals are seen as an insult. 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.
The Chinese are renowned for being 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.
Contact Us
If you have further enquire, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website www.tannet-group.net, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com.
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