Tips for doing business in China

The Philosophy

The key to success in Chinese business dealings is the concept of 关系 (guānxi). This is usually translated as ‘relationships’ or ‘connections’, but the meaning runs much deeper. Guānxi encompasses the idea of both parties doing favours for one another (the importance of the favour increasing with the closeness of the bond): accepting the assistance of the other party implies that you are ready and willing to reciprocate with a similarly significant favour when the need arises.
Failing to uphold your obligation is akin to failing to repay a debt: it is good form to send a gift as an apology. Gifts are also used to bring balance back into a relationship: if one party feels too indebted to another, a gift can help even the scales; likewise, a gift can help make amends if one party fears that they have offended the other, or that the relationship needs strengthening.

Guānxi is closely related to the concept of 感情 (gǎnqíng), which roughly translates to ‘feeling’. To have good gǎnqíng with someone denotes that you have a good rapport with them. Although business relationships begin very formally in China, over time, they often become social, which has an affect on the business itself.

Another closely linked concept is the idea of ‘face’, which comprises two different forms: 脸 (liǎn) and 面子 (miàn zǐ). Liǎn is the confidence society has in an individual's moral character; miàn zǐ is a representation of a person’s prestige. ‘Giving face’ refers to the practice of treating people with due respect with regard to their seniority. This manifests itself in the giving of gifts (the higher the rank, the better the gift you should give) and seating plans (people are ordered according to their seniority, importance and rank).

Practicalities

• The best way into Chinese business is through a contact. Remember, due to the concept of guānxi, an introduction is a favour to be repaid. As relationships are so important, a good deal can be the result of a strong recommendation. It is a good idea to seek advice before embarking upon a meeting.
• When meeting someone, it is customary to shake hands and nod the head slightly. Do not shake hands too forcefully or it may be taken as a sign of aggression.

• Seniority is very important in Chinese business. Instead of 'Mr ...' or ‘Ms …’, it is respectful to address people as their title e.g. ‘Director ...', 'Chairperson …’.
• It is best to avoid all physical contact where possible i.e. do not put your arms around someone’s shoulders or pat them on the back.

• How you conduct yourself is also important. You should remain calm and be sure to pay attention, so as to show that you are worthy of respect.
• The exchange of business cards happens upon first meeting. Business cards should be translated and ideally printed using gold ink, as gold is an auspicious colour. Make sure the card contains your name, company, rank, contact details and qualifications. It is always best to hand the card to your client so that he or she does not need to turn it in anyway to be able to read it. Any business cards you receive should be placed in a special holder and not in a pocket or wallet. Be sure not to place four cards in a holder, as four is a very unlucky number due its connotations of death.
• Do not arrive late to a meeting: this is taken as an insult. Be sure to stick to the agenda.

• Expect to compromise. The Chinese are tough negotiators.
• Gifts are an important part of business, especially in smaller cities and towns. You should expect to receive gifts (such as Chinese art) from Chinese associates and it is polite not to rebuff them. They may even ask you what you’d like: it is a good idea to show an interest in Chinese culture and ask for an item such as tea. When giving gifts, be sure to buy something of worth and give it to the recipient with a witness present to avoid the risk of the gesture being taken the wrong way. Chinese modesty means that the gift may be politely refused two or three times and will be opened at a later stage when you are not around.

• Be aware that different colours have different meanings in China: red is the colour of good luck and happiness; green is associated with health, prosperity and harmony (although avoid green hats, as they are a sign of infidelity); white is associated with death; blue and dark blue are associated with funerals; and black, although a neutral colour suitable for daily clothing, can also have funereal connotations.

Business and Food

It is very likely that you will be taken to a restaurant to talk business -- although sometimes, dinner comes before any discussion at all! The dinners are often elaborate and held in private rooms and the seating plan is extremely important, so be sure to follow the rules.

Food is very important to the Chinese: a phrase you’re bound to hear in the capital is 'chīfàn le ma?’ (‘have you eaten?'), which is a typical Beijing greeting! Alcohol always accompanies a meal and it is thought rude to refuse it. If you do not drink, be sure to have a medical excuse at hand. If you do drink, be careful: Chinese white liquor (白酒 bái jiǔ) can have an alcoholic content of 70-80%!

If you know your dinner companions well, you may go on to a karaoke bar or night club after dinner. The host pays, and you should not offer to; to do so is considered impolite.

The Basic Etiquette of Dining

• Don’t point at people using your chopsticks.
• Don’t place chopsticks down on the table unevenly; that is to say, make sure that they do not form a 'v' shape, as this is reminiscent of ancient coffins.
• Don’t ‘slurp’ whilst using chopsticks.
• Don’t strike your bowl with your chopsticks: this is how beggars used to beg.
• Be sure to use the correct ends of your chopsticks when eating your food.
• Don’t stick chopsticks vertically into a bowl of rice, as this is similar to the incense burnt for the dead.
• Don’t place your chopsticks in a cross formation.

Don’t drop your chopsticks on the ground, as this disturbs buried ancestors.

Official public holidays