- Working practices
- Being late is considered a serious insult in Chinese business culture. It is advised to inform and make adjustments or rearrangements before hand when late.
- Trust is an important element in the Chinese business system.
- Structure and hierarchy
- Hierarchical structures are quite evident in Chinese business organizations with clear distinction on ranks, positions and protocol.
- Business meetings are chaired by the most senior people and they usually start the negotiations and direct the discussions.
- Working relationships
- The Chinese are comfortable with long term relationships, therefore it is important not to rush for hurried and abrupt transactions.
- The Chinese give credit to the final outcome based on trust and mutual benefits.
- Collectivism, a backlog from the communist days, is still part of the Chinese business culture.
- Business practices
- Business cards are usually exchanged after formal introduction and it is a good idea to have one side of the business card translated into Chinese and it should be presented with both hands.
- As the Chinese view trust as an important element of business, the initial discussion may include personal talk.
- The Chinese expect patience during negotiations so it is important not to rush to hurried negotiations but to be humble and accommodate the gradual process of having confidence building measures during discussions.
- There is a difference in the mindset of the Chinese when compared with the westerners. Western thought is dominated by linear logic whereas Chinese thinking is influenced by early philosophers, who saw a paradoxical balance of opposites in all things. Where Westerners tend to look for clear alternatives (option A instead of option B), Easterners may examine ways to combine both option A and option B.
Business etiquette (Do's and Don'ts)
+ DO maintain face to face and eye contact while meetings. Chinese take this gesture to mean that you are being honest and sincere.
+ DO greet the all Chinese counterparts with usual handshakes, direct eye contact and a smile after the Chinese counterparts have initiated formal greetings.
+ DO remember to address the Chinese counterparts with their titles or last names.
× DON'T ever cause someone to lose face i.e. never try to insult an individual or criticize in front of others.
× DON’T try to rush or force an outcome as this will be seen in the negative by the Chinese counterparts.
× DON’T think that the signing of the contract seals everything; the Chinese see this as the beginning of the mutual association. The Chinese may be signing a contract to honor their guests. To them, a completed contract may merely be the proof that both sides have grown close enough to develop a trusting relationship.
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