As the world’s second largest economy, China is a rising economic powerhouse – and its GDP continues to grow by upwards of 10% each year. Now more than ever, corporate executives and business owners are working with Chinese businesses and corporations. As a result, the demand for Mandarin language skills, cultural understanding, and superior Chinese business etiquette has increased significantly. In the twenty-first century we are in a global community where cross-cultural understanding is an essential part of everyday life. Odds are, if you are in the business world, you will frequently come into contact with Chinese officials and business people. Having a basic understanding of Chinese business culture and etiquette is an integral component of your continued success.
Here are a few helpful tips to assist those who are planning to do business negotiations in China, or with Chinese business people here in the United States. Also, keep in mind that having a professional interpreter is key to successful business negotiations, as they will ensure that nothing is miscommunicated.
Meeting and Greeting
Body language is a significant aspect of Chinese communications. Certain movements that are commonplace in the United States can be seen as hostile or aggressive to the Chinese. When you first meet, greet with a handshake, less firm than you would normally, and a slight nod of the head. If they do not offer their hand, do not offer yours. Apart from this handshake, avoid all physical contact.
Personal introductions such as these are necessary if you intend to have an ongoing relationship with certain Chinese businessmen. Because of this, anybody who is going to represent your company should be introduced in person upfront. Additionally, the first person to enter the room – and thus the first person to be introduced – is the head of the group. Chinese value status and reputation.
Names
Similar to common courtesy in the United States, always address a person using their family name (surname) – i.e. Mr. Zhou or Mrs. Li. Quick informality is a sign of disrespect. Unlike for Westerners, were the surname is at the end of the listed name, in Chinese, the family name is listed first.
Exchanging of Business Cards
This occurs at the beginning of a business meeting, not at the end – so make sure you have plenty with you. It’s always a good idea to translate one side of your business card into Chinese, as this will show thoughtfulness. Also, when they hand you their card accept with both hands, otherwise you will appear disinterested. Don’t just throw it in your wallet or stick it in your pocket either, read it through thoroughly, and then put it into a business card case. These cards are an extremely important aspect of the process, and any flippancy will be seen as an insult.
Getting Down to Business
Unlike in the United States where the element of surprise is often an advantage in negotiations, in Chinese etiquette, everything that will be discussed in a meeting ought to be laid out beforehand.
Next, don’t get right down to business. It’s customary for meetings to begin with small talk. Good topics include sports, food, and places to visit. Try not to tell any jokes – odds are, they will be lost in translation.
When the meeting does begin – do not interrupt, when it is your turn speak slowly, and take all head nods as “I have heard what you said” and not as “I agree with you.”
A Few Other Reminders
- Arrive early – punctuality is paramount and shows respect for the other person’s time.
- If you need to point at something, indicate the direction with your open hand. Pointing is an aggressive sign. Red and Gold are positive colors that indicate power and prosperity.
- China’s business culture and etiquette is very much different from Western business practice.
If you intend to travel to China for business purposes, it is good advice if you can learn some basic Chinese business culture before making the trip.