Business Etiquette In China

There are two main barriers confronting the first-time exporter or investor in China. One is the language. The other is the Chinese way of doing Business. Getting over the first means hiring interpreters or teaching your staff Chinese. Conquering the second requires fewer resources.

A major element of operating successfully in China is mastering the local code of etiquette. Once you have learnt a few basic rules, your meetings with Chinese decision makers should go much more smoothly, and potential embarrassments and politeness. Keeping your temper (equated in Chinese terms with maintaining face), even when things go wrong, can pay disproportionate dividends. The following hints may help you deal with day-to-day situations.

Introductions

¦ Formal introductions are standard. Start with the most senior person and work your way down. Shaking hands is important and helps break the ice.
¦ Business Cards are essential. Always take more than you think you will need! It is a sign of courtesy to have your card translated into Chinese. Many Chinese do not read English. Present your card with both hands with the Chinese side face up. Spend a few seconds examining the cards you receive. This shows respect for the cards owner.
¦ It is a good idea to bring along small gifts for your hosts (books, pens, ties, or some memento of your company). It is not customary to open the presents in front of the giver, unless encouraged to do so.

Communications

¦ Communications are often difficult tin China because of the bureaucracy, and language difficulties. In less-developed areas, telecom services may also be of low reliability. Advance planning is best down by phone or fax for the sake of speed. But follow-up letters to meetings or banquets are appreciated.
¦ Persistence is an asset. Fax machines are often engaged, phone calls may be routed to the wrong number, and Chinese switchboard operators vary in the helpfulness, competence and knowledge of English – to the extent that communication in English is rarely possible.

Entertainment

¦ Most Chinese are unenthusiastic about Western Style food and prefer their national dishes. Typical official entertainment for a foreign visitor will take the form of a banquet with several courses, often consisting of exotic delicacies not usually eaten in the west. It is polite to try a little.
¦ If you are the host at a Chinese restaurant at the customary round table, your seat should face the door, with the Chinese guest of honour on your right. Guests are seated further away from the host in descending order of seniority, with the most junior having their back to the door. Thought should be given to placing interpreters between guests who cannot speak each other’s language. If in doubt about the placement of guests, a friendly invitation for their assistance when they arrive often solves the problem. The Chinese are very conscious of social hierarchy.
¦ It is common for the Chinese host to serve food to the guest. If you are the host and offer a guest a second helping, do not automatically take no for an answer. They may just be being polite.
¦ Frequent toasts, to good health, Sino-British friendship, etc, are standard. Locally produced wines or Bai Jiu (Strong Spirit) are the usual drinks for toasts. However, many Chinese have a low capacity for alcohol. If you host a meal, plenty of soft drinks should be available.
¦ Never arrive late for a Chinese meal. Chinese often arrive up to fifteen minutes early. They also tend to leave en masse as soon as the last dish has been eaten. Chinese hosts make it quite clear when the meeting is over. You will not be expected to linger. The Chinese also eat earlier than we do. Lunch is served from 11.30 am on, and dinner from about 6.00pm
¦ Table manners are a matter of fitting in. If in doubt, follow your host’s example. One gaffe to avoid – do not leave your chopsticks pointing into the bowl. Place them horizontally on the rest provided.

Social Conversation

¦ Stick to safe subjects. These include family, one’s hometown, the wonders of Chinese culture, etc. Avoid talking politics unless you know the person very well. Chinese people are nervous about having political discussions when other Chinese are around. In any case, do not criticise China or Chinese Leaders.
¦ Humour requires similar care. Anodyne jokes are the safest. While you can makes jokes at your own expense, remember not to weaken your position in the Chinese eyes by ridiculing your company or British Standards. Most Chinese are rather prudish, so avoid jokes with sexual connotations. If what you are saying is being translated, keep jokes to a minimum. Humour rarely translates well due to language and cultural barriers.

Presentations

¦ It is useful to have some background knowledge of China, as the Chinese are usually well versed in their country’s history and geography. Be aware of certain sensitive subjects. Taiwan and Tibet are considered to be a part of China. Do not talk about Hong Kong as if it were still under separate administration.
¦ Visual aids are useful. Handouts (preferably with Chinese Translations) are preferable to view-foils or slides. Projectors may not be available. Colourful brochures are popular, especially if they are printed in Chinese.
¦ Language can be a problem if you do not speak Chinese. The Chinese side will normally provide interpreters, but their quality varies, especially outside the major cities. To help get the message across, speak clearly and unambiguously. Pause regularly. Keep the grammar simple. The structures of English and Chinese differ greatly. Simplicity will help you make your meaning clear.
¦ Audience reactions vary. The Chinese applaud themselves when they have spoken, as well as clapping in response to others. But do not be put off if your audience is extremely passive. Throwing questions to the audience, inviting group participations may not elicit much reaction, although younger participants are often more willing to ask questions.

General

¦ Morning meetings should be over by 11.30am to allow for lunch, and afternoon meetings by 5.00pm. Although the Western-Style two-day weekend has recently been introduced, on rare occasions officials may be willing to meet on Saturday mornings. Check first. Make a note of Chinese public holidays and do not expect officials to see you then, particularly for two weeks around spring festival.
¦ Even with recent political liberalisation, foreign travel is as luxury open to only a minority of Chinese. Inviting your hosts or business partners on short, expenses-paid “inspection tours” of your company headquarters, or training visits, will be popular and will stand your company ion good stead if there are a number of companies competing for the contract.
¦ Remain patient, even if you are pushed to the limit. Do not be afraid to express your dissatisfaction. But do so in measured tones. You are far more likely to receive a cooperative reaction if you frame your problem as a difficulty both sides can solve together.