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China Business Tips
Talking about the advantages of doing business in China is easy and very clear, but actually doing business in China is not that simple. There have been many successes, but even more failures. We encourage you to be inspired by the successes of others and in turn proceed carefully, cautiously, and with an open mind learn from the failures and mistakes of others whenever you can. While learning business Chinese language can be an advantage when doing business in China, it is important to understand that no matter how big your vocabulary is and how fluently you speak Chinese, your cultural communication skills will prove to be much more important when doing business and forming relationships and contacts in China. Business Chinese vocabulary is great for reading periodicals and economic journals, but the real value is in understanding Chinese people, what they like, what they expect, and how to best interact and do business within the realm of Chinese culture. A good understanding of this along with general communication skills in Mandarin make an excellent combination and will prove to be an invaluable asset, if not an absolute necessity, when doing business in China. With that said, we hope the following tips will help you to further your understanding of Chinese people and your business ventures in China. We will continue to add lessons on a regular basis, starting with the basics and becoming more specific down the line. Good luck! Section I -- Basic Etiquette and Cultural Notes Lesson
1: Meeting and Greeting Shaking or Bowing? When you meet a Chinese person for the first time, don't bow! This is a Japanese custom, not Chinese. Chinese people shake hands, much like in the West. Although not originally a Chinese custom, it is popular and commonly done in China now, so give your colleage a smile and shake his or her hand. Exchanging Business Cards: Chinese are big fans of business cards, so make sure you have some when you come. It is very cheap to have business cards printed in China, so if you forget them then you can still have some made here. It is always nice to have cards in both Chinese and English (or whatever your mother tongue is), but if you don't it's okay. Chinese will want to exchange business cards with you when they meet you. How you treat their business card is a direct extension of the respect you have for that person. You should accept your colleague's business card with both hands between the thumb and forefinger of each hand. Similarly, when giving your card you should present it with both hands holding it in the same manner. Don't take your colleague's card and put it in your pocket or briefcase right away! Instead, study it for a moment (this is a good time to make sure you remember your colleague's name and position) and then either keep holding it, or if sitting set it politely on the table in front of you. Be very careful not to wrinkle it or spill something on it; treat it with respect as you would your colleague. Later, when it is time to go carefully place it in your briefcase or notebook rather than shoving it in your pocket. Sitting: We will talk more in detail about this later, but for right now just remember that the guest usually sits to the right of the host. If you are the host, try to arrange things so that when you sit down your Chinese guest is to your right. They will do likewise if you are the guest. Of course, if it is only you and one Chinese colleague then you can't really go wrong! Names and Titles: Luckily most Chinese are pretty understanding and realise that it is often difficult for foreigners to pronounce and remember Chinese names. Many of your Chinese colleagues will have English names that they have chosen as well for convenience when doing business with foreigners. Try your best to remember names and pronounce them as properly as you can. Titles are very important. Pay particular attention how others are introduced to you when you first meet. If someone is introduced as "Director Zhang," then he should be addressed as "Director," not "Mr." It is important to never use a lower form of address for someone. For example, don't call someone Miss Li when she is Manager Li, and likewise President Hu should not be addressed as Director Hu, nor should Chairman Zhao be called "Vice Chairman," etc. When in doubt, it is better to use a higher form of address to be on the safe side. Chances are your counterpart will be flattered and either correct you or let it pass. The only time to be careful of this is if in a situation where perhaps both Vice Chairman and Chairman are present, in which case you definitely don't want to get the two mixed up and address one as the other while they are both present. Make sure you know, and if you don't then discreetly ask one of your other colleagues present who would not be offended by the question. Dining Basics: Chinese are masters of food preparation and cooking, and so it is no surprise that many business meetings in China happen during or at least involve a meal. Etiquette and protocol can become complicated when it comes to business dining, but the basics are relatively simple--complexities will come in later lessons. First, remember the seating preference as mentioned above--guest to the right of the host in the "position of honor." Next, keep in mind that Chinese do not fancy "going Dutch" as the phrase goes, so if you invite someone for a meal then you will be expected to pay, and you should pay the whole bill. Likewise, if you are invited chances are your host will take care of the whole bill. If the host wishes to pay and you pay instead, you will most likely be causing him or her to lose a lot of face, even if you think that you are being considerate. So, be careful in this matter. If it is just a friend and he or she wants to split the bill, then this is fine, but this will almost (99.9% of the time) never happen in business. During the meal, never stick your chopsticks upright in a bowl of rice. Doing so reminds Chinese of the incense sticks that are burned for the dead and is ominous and considered rude. Instead, set them on the side of your plate, across your bowl or on a chopstick rest if provided. Most food is served in common dishes for everyone to help themselves from. It is polite if you are the host to help serve the first portion to your guest by choosing some select morsels and placing them on his or her plate. It is not necessary to keep doing this throughout the meal. Once you have eaten with your chopsticks, the most polite way to get food from the common plate is to actually use the other end of the chopsticks (the end that has not touched your mouth) to transport the food from the common plate to your bowl or plate. When getting food, focus on what you want before you grab it--in other words, don't fish around on the common plate looking for choice morsels; locate first with your eyes and then go in with your chopsticks. When drinking, it is polite to pour your companions' drinks for them. They will do the same for you. Usually in China, whether it is tea, soda, or alcohol, people very seldom pour their own drinks. Pay attention and try not to let your colleagues' glasses go dry. Also, with the teapot, don't have the spout pointing towards anyone. This is considered impolite. Instead, have it pointing outside the table with the handle towards the inside; this is practical as well because it is easier to reach. These are just a few basic guides--there is a lot to learn later. The good thing about dining with Chinese though is that other than some basic etiquette and protocol, it is usually a very relaxed and jovial atmosphere. Lesson 2: Telephones and China Most foreigners who have worked in China for at least a brief time will agree that getting the person you want on the phone in China is often not the easiest thing to do and can be quite frustrating. There are several reasons why this is so--here are a few and also some tips for "getting through" on the phone. When calling it is proper to first explain who you are. Unless the person knows who you are or knows you by name, it is much more common to introduce yourself by your company, and then follow up with your last name. For example, "Hello, I'm with IBM, my name is Smith, is Mayor Zhang available?" Historically speaking the Danwei, or work unit, has been one of the most important parts of Chinese life. The Danwei provided everything--a guaranteed job, housing, sometimes even meals--that comprised the Chinese "iron rice bowl" existence. While this has changed drastically over the past 20 years or so, the concept still lives on. That combined with the Chinese emphasis on the importance of the "group" over the "individual" (as opposed to the West's emphasis on the individual) upholds a tendency for Chinese to care primarily with which company you work, and secondarily who you actually are. While the telecom infrastructure is much better than it used to be, it can still be a problem in many areas of China. While most offices and people in large cities in Beijing will have their own telephones or extensions, in more rural areas of China it is common to have multiple "offices" or persons sharing one common telephone, which may or may not be inside the office room itself. This situation is improving, however it is important to remember that you might not necessarily first get hold of the person or company, even though the number is correct. Just be patient and explain clearly and carefully for whom you are calling. It is very common for Chinese to be extremely inquisitive about the nature of your business. Even when the person who answers the phone is seemingly very far removed from the person you are trying to reach, yourself and your business with the company, you might be amazed by the detailed questions that are asked about the nature of your business, often even with a suspicious tone. This can be very frustrating for foreigners who feel that their business is only for the ears of those involved. Resist the temptation to snap and demand to speak to the person for whom you are calling--this type of inquisition is quite common and with a little patience and a brief explanation you will probably find yourself getting through to the person with whom you need to speak. Another reason for this phenomenon is that very often in China secretaries are not really like "secretaries" in the Western sense, but more like sidekicks for their bosses, so they might feel that they need to know more information than a Western secretary would based on the Western job description of a secretary. Leaving messages in China can be a nightmare. Very often, as in any country, when you call someone in China he or she will be out at a meeting. However, whereas the secretaries in the West are very diligent (in general, of course) about relaying messages, in China this is not the case. Although this is improving in large cities where business with foreigners is common, in general, just because you leave a message does not mean that the person for whom the message is for will receive it. The secretary or person who took the message might not necessarily feel that he or she has an obligation to pass it along, or it might join the"incomplete and not for further ponderance" pile (i.e. the garbage can) at the end of the work day. In general in China, it is best to inquire when a good time to call back would be and call again later. You called me, who are you?! Yes, it is very common to get asked this by someone who has just called your phone. Countless times have foreigners told stories of Chinese people calling their offices, the foreigner picks up the phone and says "Hello," and the Chinese responds "Ni nar?" or "Ni na wei?"--"Who are you?" Obviously Westerners find it very frustrating that someone has called their number and is asking who they are, but be warned, this is very common in China. Resist the temptation to hang up or shout--it might be a wrong number, or you might be hanging up on an important Chinese contact. |
Doing
business in China is not easy. The presence of language barriers,
cultural misunderstandings and lack of planning and thoroughness of
research are all large contributors to the difficulties and frustrations
that foreigners face when trying to do business in China. However,
while the frustrations and difficulties may be many, the benefits
realised can be great. Napolean Bonaparte once said, "China is
a sleeping giant. Let her lie and sleep, for when she awakens she
will astonish the world." Little did Bonaparte know how true
his words would come to be. With approximately one quarter of the
world's population and a rapidly developing and modernising economy,
China has rapidly moved into the international scene on all levels,
particularly concerning the enormous potential of the Chinese economy.
Factors such as a huge consumer base, cheap and abundant labour, recent
entry into the World Trade Organisation, favourable policies for foreign
investors and manufacturers, and a low cost of living have all contributed
to the intense focus on doing business in China.| |
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