We have discussed this on other occasions. Many times we are wary of doing business in China due to the cultural barriers that separate us. But everything has its solution! It is all a matter of getting to know better the customs for doing business in China.
Chinese tradition is millennia-old. And yes, it seems to be very different from ours. However, in this post we are going to review their customs and we will see that, many of them, have their own logic.
The importance of contacts
As you can see, the first point we address is not very different from what we may have in the West. Those who have more contacts will find it easier to progress in the professional world.
The network of contacts of Chinese executives (called "Guanxi") is another sign of the company's social capital, based on the exchange of favours, even if these are not immediate. That is, they keep track of who they have done a favour for or who they owe one to, with this very special relationship lasting in the long term.
In this regard, the role of the intermediary is of vital importance. Thus, if we have an intermediary to do business in China, we need them to have a good network of contacts, since this way the other party will trust us more. This intermediary should be the one in charge of arranging meetings and analysing and following up on the possible negotiations that may arise.
Protocol and friendly atmosphere
Chinese executives do not separate the professional environment from the personal one. This means that they will always do business with people they consider their friends. Therefore, all agreements made will always be made in an atmosphere full of positive feelings, while maintaining the utmost respect.
Any rude atmosphere or expression will be taken as an offence, so you must be very careful about the way you express yourself, always in a cordial manner.
That is why every little detail must be cared for. For example, having learned some words in Chinese (well learned and pronounced) will show the great interest there is in reaching agreements.
In the preparation of details, a pleasant first impression can be created that bears fruit when doing business.
In this regard, attire must also be taken into account. To this end, you must know that it depends on the type of event you are going to attend. The truth is, far from popular belief, the Chinese do not place too much importance on attire. They do not overuse the suit, unless what they want is to sell to Westerners.
If it is at their offices, classically cut suits, generally navy blue, white long-sleeved shirt and tie. At other types of events you have more leeway and you can go with a blazer and a good pair of jeans. That said, the shirt should always be long-sleeved!
How to greet
Years ago, for example, the best way to greet was to bow the head slightly forward. Today, due to the westernization of China, a small handshake is also well regarded. That said, when greeting this way, you must bear in mind that it should not be a strong or long handshake. In addition, you should not place the other hand on the back or shoulder, as the Chinese are reluctant about physical contact. It is better for the other arm to be relaxed and still.
Small gestures and gifts to be a good guest
There are other small gestures that can help us create a good impression on the Chinese host.
One detail is in handing over business cards. It is advisable for the card to be in both languages to show the utmost respect for the Chinese language. Likewise, it is advisable to hand over and receive cards with both hands. This is a sign of consideration and attention.
When handing it over, it should be done so that the recipient can read the name directly, so they know who they are talking to. Upon receiving it, it should not be stored directly. The card should be left on the table during the meeting and should be put away once it has ended.
Another issue is the matter of gifts. The Chinese love objects from other cultures, so a gift that somehow shows the culture of the country of origin will be very well received. This gift should be wrapped, but with paper in very specific colours, such as red or gold, as there are colours that may affront Chinese superstitions, such as white, the colour of death and mourning. The host will open this gift in private.
Superstition is something we must respect to the fullest when doing business in China. Among the gifts you should never give are clocks, since they are associated with death. Other gifts that should not be given are sharp objects, such as knives, since the message given to the recipient is that one wants to "cut something", or a mirror, because it is easy to break and generates bad omens.
Everything revolves around food (and drink)
Although the main meetings to discuss negotiations take place in offices or factories (depending on the sector), it is a Chinese custom to hold business lunches or dinners. This is extremely important, since these types of events serve to generate greater trust between all parties. It is a moment in which we can have various topics of conversation about ourselves, the culture of our country or that of China.
Just as it is poorly regarded to talk about business at the table, it is also poorly regarded to talk about certain taboo topics or topics that the Chinese do not deem appropriate, such as religion, politics or the economy.
As could not be otherwise, good table manners are one of the conditions for showing that you are a good guest. Bad gestures or faces are not allowed while eating.
Eating with chopsticks will significantly improve our image. You have to know that in a meal in China there is no plate for each diner; there are several common dishes on a round table that rotate. In this regard, it is considered bad manners not to try each of the dishes.
As for chopsticks, you should never point with them, and likewise you should not leave them inside the bowl; they must be in a horizontal position on top of it.
Another important topic is alcohol. Surely you have heard that at business dinners a lot of alcohol is drunk. And it is true. As a general rule, what is drunk is rice liquor and it is always drunk when a toast is made; otherwise, you must drink the non-alcoholic beverage you have, usually a tea.
However, toasts are made continuously, so yes, you end up drunk. Drunkenness does not excuse anyone's actions, so you must maintain proper form despite having drunk. If you have a bad time drinking, we advise you to inform at the beginning of the dinner that you are not going to drink alcohol, for which you will need to give a strong reason (health, medication, religion, etc.). Contrary to popular belief, they will respect your decision and you must toast with your non-alcoholic beverage.
By the way! This decision must be made at the beginning; it is not acceptable to toast with alcohol at the beginning and then "give up" halfway through the dinner. Either you drink or you do not, with all consequences.
As you can see, there are many issues you need to know about for your business in China to prosper, and we have surely left some others out! That is why we recommend you contact us. At MingTa Group we have many years of experience working in China to facilitate all types of business. Get in touch with us!