Chinese Business Culture

China’s business culture and etiquette is very different from the Western business practice. If you are intending to travel to China for business purposes, there are some basic guidelines to keep in mind before making the trip.

Chinese business contacts are usually referrals; a business relationship is made based on another business associate recommendation. Good prices and deals usually come from a strong recommendation. It is common today for direct contacts and cold calls due to the availability of the internet and competitive nature of the Chinese business today. Sources can come from the internet, trade shows, catalogues and ads, etc. If you were seeking to invest in a factory in China, you would approach an investment committee or a business advisory.

The Chinese way of greeting is a nod or slight bow. When interacting with Westerners, Chinese usually shake hands. A soft handshake and lack of eye contact does not necessarily indicate timidity. A very strong handshake can be seen as too aggressive.

Chinese business relationships inevitably turn into social relationships. The more you share your personal life, including family, hobby, political views, aspirations, the closer the business relationship. Since seniority is important in China, it is important to address them by their designation, such as a Chairman, Director, Manager, instead of Mr. or Mrs. When giving out business cards or brochures, make sure you start with the most senior person and move down in line. Use both hands with the card and make sure the receiving person gets it facing him correctly.

If you are giving gifts for an initial contact, make sure you buy better gifts for the senior managers instead of buying similar gifts for everyone. It is also impolite to refuse gifts from the Chinese. There is always a trip to a restaurant before making business talk, you will likely be hosting it in a private room. The Chinese business meal have fixed seating positions for the host and guests, and seated by seniority.

The Chinese drink whether it is lunch or dinner, as long as a meal is being hosted. Chinese wine is the most popular. It is rude to refuse a drink with the Chinese at a formal dinner. If you do not want to drink, you can claim to be non-alcoholic or say you have a medical condition. It is also rude to fight over the bill or worst, split the bills. Usually the host picks up the bills for the night.

There are many controversial issues in China, there are certain subjects you want to make sure that don’t end up talking about. Do not ever mention that Taiwan is an independent state or country. Never praise the Japanese or to be seen as good buddies with them. You can condemn Mao Tse Tung, but not Deng Hsiao Ping. Do not praise Shanghai in front of Beijing natives or praise Beijing in front of Shanghai natives.

Gifts to avoid getting the Chinese are clocks (associated with death), handkerchiefs, anything that is white, black or blue.