China's business culture and practices are quite different from that of western countries. Although with the Chinese economy opening up and China's entry into WTO, many Chinese business practice are now beginning to align with more conventional methods. However, China will always have their own unique business culture and etiquette given their unique history and background. Therefore, it is good advice to learn some basic Chinese business culture if you intend to do business in China or travel to China for business purposes.
The Role of State
In spite of the rapid expansion of the private sector, many large Chinese businesses in strategic sectors remain state-owned and, in addition, apparently private firms also often turn out to have an element of state control. The state factor can have a significant influence on the way a company does business, so you should make yourself aware of the wider political milieu that your Chinese partner or customer operates in. Good personal relationships are key to successful business in China, and taking the time to get to know key officials is likely to make doing business much smoother.
Meetings and Presentations
When arranging a meeting it is advisable to provide the Chinese company in advance with details of the objectives of the meeting, names and ranks of participants and specific areas of interest. Business meetings start on time and it is good practice to arrive at the location early. Formal introductions are standard and it is usual to be introduced to the most senior person first, followed by the rest of the group in descending order of seniority.
Sophisticated PowerPoint and video presentations with multiple illustrations are the norm for many Chinese companies, and it is advisable to take the same approach to create a good impression. Chinese audiences also like to see case studies of operational projects using your product, preferably in China or a neighboring country where conditions are similar. Client lists featuring major players will create good reference points for the Chinese side.
Entertainment and Gifts
Work and social life tend to remain separate in the West, whereas much of a Chinese person’s social life will be used to further personal and business relationships. In China some three-quarters of business deals are sealed outside of working hours. Banquets have traditionally been an essential part of doing business in China, although the practice varies depending on where you are and who you are dealing with. A good time to have a return banquet is on the eve of your departure or at the conclusion of the business in hand.
The Chinese like to give gifts, which are used to express friendship, the successful conclusion of an endeavor or appreciation for a favor done. Often, the symbolic value of the gift is of more importance than the material value. But please keep in mind not to give away gifts that bear negative connotations——items which may raise eyebrows like clocks, with are associated with death and funerals.
Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020,Dongmen Rd South, Luohu , Shenzhen, China.
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