中国商务讯息 (Doing Business in China)

(The following information is from Chinese-Culture.Net)

Understanding 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 receiving 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 inquire 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 contacts 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, catalogs 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 China, you can approach a investment committee or a business advisory directly. They will be able to advise you on your best location based on your industry, raw material and manpower needs.

Business Relationship in China
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, hobbies, political views, aspirations, the closer you are in 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 is important in China
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 receiving 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 receiving party gets it facing him correctly.

Giving Face or Gei MianZi
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 good to seek advice before embarking on your first meeting with 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 receive 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 in China
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.

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 favorite, 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 in China
Formal business dinner normally drags for quite sometime as there will be much social talk, some karaoke, 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 in China
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 arguments 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 criticizing 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!

0 Comments

Business Etiquette

1/10/2015

0 Comments

(The following information is from Canadian Trade Commissioner Service, so there is quite a few reference to Canada. Please substitute the reference to USA instead)

Introduction

China’s culture and business practices differ from Canada’s. As you start or expand your business in China, having an understanding of Chinese business etiquette is important to your success. Knowing and practicing common customs will also help you relax, avoid embarrassment, and focus on the matters at hand on critical occasions. This document provides a brief set of guidelines on Chinese business customs and practices based on queries that have been received by Trade Commissioners at our Embassy and Consulates in Greater China. For further information, there are reference links at the end of the document. While nothing can beat your own personal experience, we hope that this information will be of assistance in sensitively guiding your activities.

In your business dealings in China, you will make many friends, both Chinese and foreign, who can help you learn the ropes. Follow their advice and example! The toughest business people you encounter will often also prove to be genuinely warm and accommodating hosts, and will overlook simple errors of table manners or business etiquette – as we would in Canada – if your purposes are serious and your conduct respectful.

Background

Before beginning, recognize that the following qualities are valued by the Chinese and therefore relevant to your Chinese business interactions today:

Saving and giving face
Respect for elders and rankings (note that the latter is particularly important when dealing with government officials)
Patience
Politeness
Modesty

Approaching Business in China

Top tip: Business in China relies heavily on personal relationships: make sure you have some!

Doing research on the market is important in China, but personal relationships are equally essential to business success here. It is crucial to establish and maintain good relationships with key business contacts and relevant government officials. Attending industry networking events, contacting industry associations and municipal or provincial investment promotion bodies, and following up on personal introductions are all good ways to start the relationship-building process.

While many Canadian firms have done business successfully with credible firms in China, it is important to remain aware of potential scams that you may encounter as you approach business in China.

Attending and Conducting Meetings

Top tip: Don’t be late, and know who’s boss!

In general, meetings in China follow the same format as those in Canada, albeit with a bit more ritual. The Chinese value punctuality, so arrive on time or even slightly early for meetings or other occasions. The following points should be kept in mind:

Dates: Check the Chinese calendar. If you are scheduling a meeting, avoid all national holidays, especially Chinese New Year, when the entire country effectively shuts down and it can be very difficult to organize meetings with key individuals. The May 1 and October 1 holidays also affect businesses: be forewarned.
Preparation: Be well prepared in advance of your meetings. Your Chinese hosts will most likely know you and your business quite well. Have a detailed proposition of the value of your company and product; your counterparts will have one for you (see section below on “Materials”). Chinese businesses often meet with numerous foreign businesses seeking to establish relationships; if you are unable to capture their attention at the first meeting, you may not be able to secure follow-up.
Language of the meeting: Make sure you know the language capabilities of your hosts before the meeting. It is more convenient and reliable for you to have your own interpretation if your hosts don't speak English or have little English capability.
Meeting room set-up: If you have specific requirements for a meeting room set-up (e.g. projector and screen), be sure to communicate this to your hosts in advance of the meeting. They are usually happy to accommodate, but often do not have the in-house capacity to set up the technology on the spot.
Materials: Have Chinese-language materials (e.g. brochures, presentations) about your company to share with your hosts. While your contact in the organization may speak perfect English, the decision makers in the company may not. It will be challenging for your interlocutor to convince others of your company or product's value if they are not equipped with Chinese materials.
Dress Code: Government officials and top management dress formally for meetings, while business people at working levels may adopt a more casual style. If you’re not sure, go formal – it will convey respect and seriousness. In the summertime, there can be a suggestion for men to “go casual”. This means polo shirts or button-down short sleeve shirts, as opposed to suits and ties (or shorts – which are definitely not appropriate).
Introductions:
- Addressing others: Seniority is valued in China. It is important to address your counterparts by their title (Chairman, Director, etc.). Find out who the most senior person in the room is, and address them first.
- Introducing yourself: Say your name clearly, and remember to state both the company you work for and your position. As a point of reference, know that Chinese will refer to their company first, then their title, and then their name when introducing themselves to others.
- Handshakes: As in Canada, meetings often start with handshakes. Ensure that you are not too aggressive with your handshake. Don’t be surprised if you are at the receiving end of a decidedly non-aggressive handshake. If things go well, you may also be on the receiving end of a prolonged handshake: anything goes. In western business contexts, you have probably found yourself in “squeezing” contests (among men): who has the stronger grip? In China, the question will be “who lets go first?” Don’t be shy about holding on if your counterpart is enjoying the contact – it is meant well.
- Giving/Receiving business cards: Similar to introductions, hand out business cards to the most senior official first. Chinese use both hands when giving and receiving anything of value, including gifts and particularly business cards; you should do the same as this is one of the first points at which you will make an impression. Take a moment to look at and acknowledge the individual’s card. Have your own cards translated into Chinese on one side. Your title is important; this is how your hosts will determine who should be invited to meetings, what weight your words carry, and where you will be seated.
- Your name: Having a Chinese name, ideally one with meaning rather than a transliteration of your English or French name will be taken as a sign of respect as well. The best approach is to have a local contact or native speaker help create one for you. A link to an online Chinese name creator is provided at the end of the document under “Useful Links”.
Seating Arrangements: The host will take the lead, and you will likely have a name card or designated seat based on your role in the organization.
Meeting structure: Particularly in government circles, meetings may follow a fairly formal structure, with the senior member of the hosting party introducing himself/herself and colleagues, and then proceeding to state his or her views and position on the matter in question. Following this, the leading member of your party should do the same. Subordinate members of the Chinese party will not usually speak unless asked to do so by the most senior person; your observance of the same protocol (even if your management style permits a more fluid approach) will have the advantage of conveying who is in authority and who, within your own team, may have special expertise or authority in a given area.

Dining

Top tip: Follow the leader!

Business often gets conducted during meals. As with business meetings, food and seating are determined by the hosts. The following points should be kept in mind when dining formally with the Chinese:

Beginning to eat: Follow cues from your hosts and start eating when the hosts begin. There will be cold dishes placed on the table when you are seated; wait to be invited before you dig in.
Keeping pace: At formal banquets and high-end restaurants, serving staff may keep up an almost constant rotation of dishes. They will also change your plate frequently with a clean one, so as not to mix dishes and flavours. While at first this may be distracting, accept the rhythm and you will soon cease to notice it. In order to have a sense of what is coming next, know that the meal will proceed with meats of various varieties and peak with a fish course, followed by a staple (rice, dumplings, noodles) and wind down with a sweet or dessert.
Refusing food: The Chinese tend to offer a lot of food, and it is acceptable to refuse food if you have dietary restrictions or allergies. However, it is a sign of politeness to accept some of everything, and sample (even a little of) all dishes served. But don’t eat or drink all of something you don’t like, since this may be taken as a sign that you want more! This is where the rotation of plates can serve to your advantage: a nod to the wait staff to remove a plate will allow for your preferences to be accommodated unobtrusively.
Drinking: While local wine can be preferred at banquets, the Chinese more frequently offer strong distilled alcohol called baijiu or maotai (a very special type of baijiu) for toasts – and there may be many toasts during a meal. Never drink from the toasting glass except during a toast – and don’t let the size of the glass fool you as to the power of the contents! The Chinese know that their alcohol is considered strong for foreigners, and under normal circumstances, they will not push you to drink. Some hosts will provide drinking yogurt to help protect your stomach, which can be helpful to allay the effects of the alcohol. Try to avoid drinking baijiu on an empty stomach as you will feel the effects of the alcohol quickly – it’s a good idea to eat something before the toasts begin. If you cannot or do not drink for medical or personal reasons, this is respected but you should advise your host or your working level contact of this at the beginning of the banquet, or even beforehand. It will be noted carefully by your hosts and arrangements will be made to avoid embarrassing you.
Toasting: Your host will start off the banquet with a toast to your presence / friendship/ cooperation / getting to know each other / clinching a deal. You may choose to reciprocate, toast for toast, or to wait until the host, his or her colleague, and one other member of the hosting party has toasted. Typically, the principal guest is expected to toast a few courses after the host toasts. If you are toasting, your comments should be warm and sincere, and your toast should not be any longer than your host’s. When toasting, the Chinese normally say gan bei, which translates to “bottoms up”. Note that drinking is sometimes expected as proof of a close relationship where partners can reveal their true selves, even in a business context. While this expectation is slowly changing and may vary by region, it is something to be aware of. If the group at the banquet is very comfortable with each other, it is also not uncommon to go around the table toasting each member of the party. Take your cue from your hosts and from your local contact or interpreter.
- Note: There are great differences in dining and toasting customs among different regions in China. When in doubt, ask your host. He or she will be very happy to explain them to you and will be impressed at your interest in and respect for local customs.
Conversation: The banquet is generally a social event in a formal context. Discussion will likely center around pleasantries, background information on the region or the company, but it is not a time for negotiating or challenges. The focus may not be the food per se, but there will be pride in the offerings provided.
Paying the bill: The host pays. If you are hosting a meal, do not show money in front of your guests. Either have someone slip out and settle the tab or wait until your guests have left before paying.
Hosting the banquet: It is not common business practice to be expected to host a banquet at the conclusion of a deal. Certainly if you would like to host a banquet this is your prerogative, but it would be considered bad form in a business context for the Chinese company to insist you do so or provide you with the bill at the end of the meal.
Concluding: There is little lingering at banquets. Formal dinners often end suddenly, when the senior member of the hosting party stands up (quickly followed by staff and subordinates), briefly thanks the guests for attending, and proceeds to leave the room. This may appear abrupt the first few times you witness it, but is simply a decisive and useful way to bring the occasion to a close. If there is a dessert / fruit course, you can expect this to follow fairly shortly before the senior member of the hosting party departs. Gifts (see below) are usually offered at the conclusion of the banquet, prior to departure.

Gift Giving

Top tip: Buy Canadian… and make no allusion to the passing of time!

Gift giving is a common Chinese custom that business visitors to China should prepare for and use to advantage. The advice of a Chinese friend or colleague is invaluable in doing this properly, but here are some simple guidelines:

Who: Typically, a single large group gift is presented to the chief person or leader of a Chinese organization. Gifts should be presented from the lead of the Canadian delegation to the lead of the Chinese delegation and vice versa.
What: Gifts should not be too expensive. The gifts you receive will often have strong local associations that are a matter of real meaning (local identity) and therefore pride to the giver. The best gifts to offer in return will be items that are unique to Canada: small paintings, carvings, or books (keep your host’s English capabilities in mind!) are appreciated and reasonable as gifts. The Chinese are fond of dark red, gold or blue, which are all appropriate colors for gift wrapping.
When: Gifts are usually given at the end of an introductory meeting or at a banquet. Delegations visiting China are normally expected to offer gifts to their hosts, and the opposite is true for Chinese travelers to Canada. In both cases, this should be factored into preparations for making a trip or receiving an incoming delegation in Canada.
How: Always give and receive gifts or anything of value with two hands. Note that it is common in China for the recipient to refuse the offer of a gift at first. The giver should persist, and the recipient will eventually accept.
What Not to Give: Gifts to avoid include clocks and scissors or other sharp items such as knives or letter openers. Avoid wrapping gifts in white or black, which are colors associated with funerals.

0 Comments

Trade Data

More on Business Etiquette

Business Etiquette

Archives

Categories