Doing Business in China

Once a foreign winemaker told Chinese reporters in Shanghai that he hoped his "ultra premium wine to do well in China because it has done well in Japan and the two cultures have so much in common". But the deep resentment of Japan that still remains in China didn't actually help him at all to sell a single bottle of his "ultra premium" product…

COMMUNICATION AND BEHAVIOUR

• Negative answers are considered impolite. Answer "maybe", "I'll think about it", or "we'll see" instead of a blunt "no".
• When your Chinese counterparts politely say "Not a big issue" or "The problem is not serious", they usually mean "There are still problems".
• Terms such as "Red China", "Mainland China", and "Communist China" are to be avoided. Just "China" will suffice.
• There is no need to avoid mentioning Taiwan as long as you call it "Taiwan Province" or just "Taiwan".
• Handshakes are popular but wait for your Chinese counterpart to initiate the gesture.
• Do not put your hands in your mouth as it is considered rude. Likewise, when in public, refrain from biting your nails, removing food from your teeth, and similar practices.
• Spitting in public is not acceptable anymore and it's subject to a heavy fine.
• Most people should be addressed with a title followed by their last name. If a person does not have a professional title simply use "Mr.", "Madam", "Miss", plus the last name.
• Unless you're a convict communist, never refer to someone as "comrade."
• Official policy in Chinese business culture forbids gifts.  The gesture is considered bribery, an illegal act in the country.

• "Eight" is deemed as one of the luckiest numbers in Chinese culture. If you receive eight of something, consider it a gesture of good will.
• "Six" is considered a blessing for smoothness and progress. "Four" is taboo because it means "death".
• Other numbers such as "73" meaning "the funeral" and "84" meaning "having accidents" should be avoided.
• If invited to a banquette, wait to be seated, as there is a seating protocol based on hierarchy. Business is not discussed during the meal.
• During a meal, 20 to 30 courses can be served, so try not to eat too much at once. The trick is to tuck in a sample of each dish.
• Scorpions, locusts, snake skin, dog meat and blood are considered premium delicacies.
• Leaving an empty dish is perceived as if you were not given enough food: a terrible insult to the Chinese.
• Leaving food untouched will also purport offence. Even if you find a dish unappealing, try a small portion just for the sake of politeness.
• Slurping and belching at the table are acceptable: they are perceived as signs that you are enjoying the meal.
• Building a personal relationship ("guanxi") during your business is very important. Part of this involves participating in the strong drinking culture that exists in the country.
• Sometimes, the Chinese enjoy testing the ability of a foreigner ("lou wai") to handle alcohol, especially "er gua toe", a powerful booze that might be compared to airline fuel. A good practice would be to eat something beforehand.
• If you want to avoid alcohol, your counterparts will accept medical excuses.
• Giving tips is generally considered an insult in China.

DOING BUSINESS

• Being late for an appointment is a serious offence in the Chinese business culture.
• The best time for scheduling an appointment is April to June and September to October.
• Business hours are 8:00 am to 5:00 pm, Monday to Saturday.
• Many Chinese workers take a break between 12:00 and 2:00 pm. Almost everything 'shuts down' during this period, from lifts to phone services.
• Conservative suits are the norm. Bright colours of any kind are considered inadequate.
• It'll be beneficial to bring your own interpreter to help you understand the intricacies of everything being said during meetings.
• Speak in short, simple, jargon-free sentences. Pause frequently.
• Before you arrive, have at least 20 copies of your proposal(s) ready for handing out.
• Printed presentation materials should be only in black and white. Colours are to be avoided.

• Belief in the communist party line will be dominant in all negotiations.
• "Saving face" is an important concept to bear in mind. Causing embarrassment or loss of composure can be disastrous for business negotiations.
• Exchanging business cards is common practice, so bring a plentiful supply.
• Make sure that one side is in English and the other in either Mandarin or Cantonese, depending on the region.
• Include your professional title on your business card, especially if you hold a decision-making tenure.
• If your business is the oldest or largest in your country, or has some other prestigious distinction, ensure that this is stated on your card.
• Having your business cards printed in gold ink is a distinctive asset. In Chinese business culture, gold is the colour of prestige and prosperity.
• Tender your card with two hands and ensure that the Chinese side is facing the recipient.
• When receiving a business card examine it carefully for a few moments.

• People are expected to enter the meeting room in hierarchical order. Chinese will assume that the first foreigner to enter the room will be the head of the delegation.
• The Chinese tend to extend negotiations far beyond the official deadline to gain some advantage.
• Be patient, accept that delays will occur and do not mention deadlines.
• When the meeting is finished, you are expected to leave before your Chinese counterparts.
• You may have to go back several times to achieve your objectives. Chinese businesspeople prefer to establish a strong relationship before closing a deal.