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Chinese Business Culture and Etiquette
   
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One of my greatest loves as a kid was fishing. This love developed quickly because my family owned a little bait shop that was located .....
One of my greatest loves as a kid was fishing. This love developed quickly because my family owned a little bait shop that was located .....
Chinese business culture and etiquette The Chinese
business practice is vastly different from the Western method
that most of us may be used to. Of course, with the Chinese
economy opening up, China's joining of WTO and the Olympics in
2008, 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.
"I was recently involved in a business meeting that went sour
and threatened to scuttle a good deal. What happened was that
the Chinese party recieving the American purchaser was late in
reaching his hotel. The American was furious as he had a tight
schedule and that they were late and threatened to withdraw his
purchase.
The Chinese party was late because they were given a vague
address of a lake-side hotel. You see, what happened was that
the American gave his hotel as Lakeside hotel. Unfortunately,
there were numerous hotels along the lake but the Chinese were
too shy to enquire which lakeside hotel earlier because they
were afraid the American would 'lose face' for having given a
vague address. Instead, they spent the morning hopping from one
lakeside hotel to another looking for this American gentleman."
A simple cultural difference threatened to scuttle a perfectly
good working relationship. To avoid similar cultural disasters,
here are some tips on how you can conduct a more successful
business in China.
The initial approach Chinese business are mostly
referrals; essentially a business relationship is struck based
on another business associate recommendation. The best prices
and deals often comes from a strong recommendation.
However, it is common today for cold calls and direct contacts,
given the availability of the internet and the competitive
nature of Chinese businesses. You may source from the internet,
trade fairs, catalogues and brochures, advertisements and
approach the Chinese companies directly through a call or email.
Alternatively, if you are seeking to invest in a factory in
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China, you can approach a investment committee or a businessSpain has a lot to offer Northern Europeans and until recently there was a marked difference between the price in their home country and a similar Spanish property. However many buyers .....
advisory directly. They will be able to advise you on your best
location based on your industry, raw material and manpower
needs. Please contact us directly if you have such a need and
we'll be glad to advise accordingly.
Relationship Chinese business relationship inevitably
becomes a social relationship after a while. Unlike Western
business relationship which remains professional and perhaps,
aloof, even after a long time, Chinese business relationship
becomes a social one.
The more you share your personal life, including family,
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Many individuals agree that the sauce on barbecued meat is like the icing on a cake. Gourmet barbecue sauces, rubs and marinades are commonly served on (or on the side of) the finished dish. Barbecue .....
hobbies, political views, aspirations, the closer you are inMany individuals agree that the sauce on barbecued meat is like the icing on a cake. Gourmet barbecue sauces, rubs and marinades are commonly served on (or on the side of) the finished dish. Barbecue .....
your business relationship. Sometimes, a lot of time is spent
discussing matters outside of business, but then a lot of time,
the other party is also making up his mind about your deal based
on how much he sees your personal relationship with him.
Seniority Seniority is very important to the Chinese
especially if you are dealing with a State owned or government
body. Instead of addressing the other party as Mr or Mrs so and
so, it is always appropriate to address the other party by his
designation ie Chairman So and So, Director So and So or Manager
So and So.
When giving out namecards or brochures, make sure you start with
the most senior person before moving down the line. When giving
out a namecard or recieving one, ensure that you are stretching
out with both hands with the card. Remember to face the card you
are giving out in a manner such that the recieving party gets it
facing him correctly.
Giving Face Giving face (aka giving due respect) is a
very important concept in China. You must give the appropriate
respect according to rank and seniority. For example, if you are
buying gifts for an initial contact, make sure you buy better
gifts for the senior managers instead of buying similar gifts
across the board.
Similarly, sitting positions in a meeting room or a dining table
is accorded accordingly to rank, importance and seniority. It is
Tenderizing
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good to seek advice before embarking on your first meeting withRecently, the magazine I own and edit got a hate letter that was so full of venom and hostility, it gave me shivers. The ultra-religious lady who wrote it is young and .....
Chinese business contacts to avoid making the wrong move.
Gifts and Presents Unlike earlier days when China was
very poor, gifts, especially of Western origin was especially
appreciated. Today, China produces and imports almost anything
imaginable and gifts are no longer a novelty.
However, gifts are always appreciated and especially in the
smaller cities or towns, will continue to play an important part
in your business relationship. Do note that if you are indeed
giving gifts, make sure the senior people get a better gift or
at least gifts perceived to have a higher value than their
junior staff.
Similarly, expect to recieve gifts from the Chinese, especially
Chinese art products. It is polite not to refuse, especially if
it is not of too high a monetary value.
Lunch/Dinner There is no business talk in China without
at least one trip to a restaurant. Sometimes, a trip is made to
the restaurant even before any business discussion take place!
Inevitably, the restaurant will always be a grand one and you
are likely to be hosted in a private room.
There is an elaborate seating arrangement for a Chinese business
meal. There are fixed seating positions for the host and the
guest and then they are seated again according to seniority.
This is a very important aspect of a formal dinner and it is
important that you follow the rules accordingly. However, it
seems that the Northern Chinese are very particular to this
formal seating arrangement while the Southern Chinese has loosen
the formalities somewhat.
You may like to find out more this interesting China Book at:
http://www.chinese-culture.net/html/posted_to_china.html
Drinking with the Chinese The Chinese are big drinkers
especially in Northern and Western China. It does not matter if
it is lunch or dinner; as long as a meal is being hosted, there
will be alcohol.
Chinese wine is the favourite, followed by red wine and beer.
Chinese wine is more like fuel than liquor, having a alcohol
concentration as high as 60%! No matter how good a drinker you
may think of yourself, never, ever challenge a Chinese into a
drinking contest. They will win, hands down!
It is often seen as rude not to drink with the Chinese in a
formal dinner. To maintain your sanity, either claim to be a non
alcoholic or plead medical grounds as an excuse. This will let
you off the hook with little or minimal drinks. Better yet,
bring a partner who can drink on your behalf!
After Dinner Entertainment Formal business dinner
normally drags for quite sometime as there will be much social
talk, some karoake, and drinking contests. Most of the time,
everyone is too drunk to indulge in further entertainment after
a dinner. In addition, if you are just new to this partnership,
you are unlikely to be invited to further after dinner
entertainment.
However, once you are familiar with them, you may be invited to
a Karaoke, or a Night Club, or a Suana. Do note that if they are
the host for the night, all bills will be picked up by them for
the night, including all entertainment. It is impolite to fight
for the bill or worst, split the bills.
Similarly, if you are the host for the night, you are expected
to pick up all bills for the night.
Controversial Issues There are some taboo areas in social
conversations with the Chinese. Try to avoid these
conversational topics as much as possible. I have seen many
nasty arguements as a result of these topics:
1. You must not mention that Taiwan is an independent state or a
country. 2. You must NEVER praise the Japanese or be seen to be
good buddies with them 3. You can condemn Mao Tse Tung but avoid
critising Deng Hsiao Ping 4. You must not praise Shanghai in
front of natives of Beijing and similarly vice versa
Other than that, you are pretty safe to converse with the
Chinese anything under the sun!
For more information about Chinese business culture and
etiquette, check out our website at:
http://www.chinese-culture.net. Or email us for further
information.
About the author:
Ken Cheong worked and live in China for 5 years. He admire the
Chinese for their fighting spirit after so many years of war and
political strive. He can be contacted for business and
investment consultancy into China.
Please feel free to reproduce this article or to distribute it
as long as acknowledgement is made to:
http://www.chinese-culture.net