The Executive Suite: How to Understand Chinese Business Culture

Monday, May 13, 2013

How to Understand Chinese Business Culture

Chinese business culture is very different from how we do things in the West. Understanding Chinese culture and etiquette is very important when doing business in China, and without some research you are going to make mistakes. The most important elements to learn are rules regarding respect, formality and seniority. If you make a good initial impression and show that you have prepared properly, it will help you make good business contacts in China.

Appearance & Greetings

Wear nuetral colours and a suit to business meetings.
Wear neutral or subtle colors to a business meeting.
Avoid wearing high heels and short sleeves if you are a woman. Dress conservatively, as revealing clothes could be offensive. Men should wear a suit.
Avoid personal contact. It is considered inappropriate for a man to touch a woman in public.
Bow upon meeting. If the Chinese offer their hand for a handshake then take it, but make sure they offer their hand first.
Be punctual. Timekeeping is very important in Chinese business culture. Always make an appointment--"dropping by" is not the done thing.How To Behave & Communicate
Shake hands only if your host offers his hand, otherwise bow politely.
Avoid large hand movements, Chinese people do not use their hands expressively when they talk and will find it distracting. Do not point or use an open palm gesture.
Do not make any hand to mouth gestures. Any actions involving the mouth will be considered improper.
Do not discuss business if you are taken out to eat. If you do go out to eat, wait until your host starts eating. Women do not usually drink alcohol at meals but men will. If the Chinese are hosting, they will pay; if you are hosting you should pay. Never offer to split the bill.
Taste all dishes that are offered but don't eat everything, as it might be construed that you have not had enough to eat. Never place chopsticks straight up in a bowl: this suggests joss sticks, which connote death in Chinese culture. Try not to drop your chopsticks as this is considered unlucky.

Gift Giving & Respect

Be careful buying gifts for the Chinese business meeting.
Take a cautious approach to gift giving. In China gifts have all sorts of meanings and choosing the right one is a minefield. If you do give gifts, make sure you give senior people better gifts than their less senior colleagues. Seniority is very important in Chinese business culture.
Do not give any of the following gifts: clocks, straw sandals, a stork or crane, handkerchiefs, anything white, blue or black, or anything with the number 4. These all have unfortunate connotations. Quality writing pens are considered good gifts.
If you are given a gift, it is impolite not to accept it.
Show respect at all times to your Chinese hosts. At the table, the Chinese will sit in order of seniority. If you are at your business meetings with colleagues, the most senior among you must lead the discussion or presentation. When handing out cards, paperwork, etc., you should always start with the most senior member of the group and work down.
Prepare everything in advance. Never go to a meeting and hope that you can "wing it." Bring several copies of all written documents to your meeting. Introduce everyone formally and use formal names in the meeting.
Accept business cards with both palms open and do not put it in your pocket or wallet, use a card holder for that purpose.
When the meeting is over allow the host to leave the meeting first.

Be patient when a business decision is being made.
Wait patiently for an outcome from your meeting. Decisions are made slowly and with care in China. Certainly do not expect any answer straightaway. The Chinese business person may want to consult the stars or wait for an auspicious day before making a decision.
Wait and see if you are invited out again by your Chinese hosts, as they may want to see you socially to find out more about you. Again, do not discuss business if it is a social occasion.
Read up on Chinese culture and find ways to make the best impression at every meeting. It is likely that you may make some mistakes. If this happens, don't worry; apologize and learn from your mistake.

Some Cautionary Tips

Always make business contacts prior to meetings.
Find out who are the senior people in the meeting prior to the meeting.
Never write on a business card that has been handed to you.
Do not talk about controversial Chinese history and do not make comments about their leaders. Stick to talking about business if you are in the meeting and lighthearted personal things if you are at dinner or lunch.