Two things commonly considered when doing business in China are that it is a hierarchical system and that Internet use is not as widespread as it is in other areas of the world. But do you know why? The hierarchical system stems from the teachings of Confucius. Though China’s government encourages atheism, its constitution guarantees religious freedom. Regardless of which religion is practiced by individuals, large numbers of Chinese believe in the traditional philosophies of Confucianism and Taoism. Confucius taught that to preserve harmony in the home, certain reciprocal responsibilities must be preserved in relationships, be it between ruler and subjects, husband and wife, father and son, elder brother and younger brother, and friends. Since all but the last are hierarchical, rank and age are historically very important in all interactions.
As for the issues concerning the Internet, it is true that Internet use is hampered by government censorship and the periodic shutting down of internet cafés. However, the Chinese language generates much of the problem itself due to the thousands of ideographs not easily adaptable to keyboards. Another issue impeding Internet commerce is the fact that even many of the wealthiest of Chinese do not have credit cards.
Understanding the history of China as well as the root causes for how their system works will enhance your ability to communicate effectively when doing business within this culture.
Important tips
· Dates are displayed as Year/Month/Day, rather than Month/Day/Year.
· Avoid traveling to China during the Lunar New Year. During this weeklong holiday, convention demands that everyone return to their traditional home, which leads to millions of trips taken by car, bus, train, or plane this week. With such enormous strains on the transportation infrastructure, people find themselves waiting for days to secure standing room on trains and buses.
· Chinese people do not like to be touched. When exchanging greetings, bow or nod slightly. Only shake someone's hand if he extends it first.
· When visiting a factory, theater, or school, you may be greeted with applause. It is customary to applaud back.
· Chinese names are in reverse order from Western names; family name, middle name, given name, and often middle names and given names are combined. For example, President Hu Jintao’s family name is Hu, middle name is Jin, and given name is Tao.
o Women keep their maiden names and should be addressed formally as “Madam [family name].” For example, President Hu Jintao’s wife’s name is Liu Yongqing, and she should be addressed as Madam Liu.
Appointments
· Written Chinese does not have a future tense, but can only be defined by the context. Because of this you must be very specific on times and dates for appointments, contracts, or other transactions.
· Be it for business or social meetings, lateness or a cancellation is considered a slight.
· Spring and fall are considered the best times of year to plan a business trip.
· China is 13 hours ahead of Eastern Standard Time, and though it is similar in size to the U.S., it only has one time zone.
· Your business cards should include a Chinese translation on the back; bonus points if the Chinese font is in gold. Be careful how you handle your prospect’s business card. Placing it in your wallet and then your wallet in your back pocket is not appropriate.
Negotiations
· During negotiations, Chinese businesspeople will have an interpreter. It is a good idea to make sure you have one as well to help you understand the nuances of what is said.
· Use short, simple sentences, without slang or jargon, to make sure your exact words are understood.
· Do not be impatient; the Chinese are good at dragging out negotiations well beyond your deadline to gain an advantage. They may even renegotiate a contract on the final day of your visit or try to snare a better deal after the contract is signed.
· Do not overemphasize your ability to meet a deadline; humility is a virtue and your Chinese counterparts will investigate your claims.
· Your most senior officer should be the only one to speak and lead the conversation, with other parties only contributing upon request.
· At the conclusion of the meeting, your team should be the first to leave the room.
· Unless you understand the nuances of color, have all your collateral printed in black and white.
Entertaining
· Business lunches are very popular.
· If your prospect throw’s a banquet in your honor, it is appropriate to reciprocate at the same level; make sure cost per person is similar, but do not outshine their banquet.
· Show up early, preferably thirty minutes before your host does.
· Never begin eating or drinking until your host has.
· Eat lightly in the beginning; some banquets have up to 20 courses.
o You should try everything. The Chinese may even test your fortitude with exotic delicacies such as thousand-year-old eggs or deep-fried scorpions with their stingers intact.
o If you clean your plate, they will refill it. If you finish everything, your host will feel that they did not provide an adequate amount of food.
· Historically, women do not drink alcohol. For formal events, businesswomen should accept a drink if offered, take a sip, and then leave it. However, it is now perfectly acceptable for women to drink at less formal events such as a trade association dinner.
One last tip: you need to establish contacts in China before planning a trip. The Department of Trade or Commerce can assist in arranging appointments with business and government officials, and can identify importers, buyers, agents, distributors, and joint venture partners.
Morrision, Terri, and Wayne A. Conaway (2006). Kiss, Bow, or Shake Hands, 2nd Edition. Massachusetts: Adams Media Corporation.