Business etiquette and protocol in China

1. Relationships and communication

While doing business in China one have to take into consideration their speciIic
business etiquette during business meetings. OI course every country has its unique
Ieatures but Chinese ones are special in this way that iI u do not Iollow them at least
partly your relations with them will not be IruitIul. Whereas it is possible to negotiate
with some countries in the way one is used to in its own country the Asian cultures
including China would treat is as a disregard. This is inter alia reIlected in the Iact that
the Chinese don't like doing business with people or companies they don't know, so
working through an intermediary is crucial. This could be an individual or an
organization who can make a Iormal introduction and guarantee the reliability oI one`s
company. AIter reaching this point it would be desirable to send some materials (written
in Chinese), beIore arriving in China that describe the company, its history, and
literature about its products and services. The Chinese oIten use intermediaries to ask
questions that they would preIer not to make directly thus providing them with as much
inIormation as possible beIorehand would be very beneIicial.

As business relationships are built Iormally aIter the Chinese get to know their
partner it can take several inIormal meeting beIore he gains their trust and they will get
down to the business. This requests a great patience Irom their partner as it takes a
considerable amount oI time and is bound up with enormous bureaucracy.
Another interesting thing that should be kept I mind is that the Chinese see Ioreigners as
representatives oI their company rather than as individuals. This is due to the Iact that in
China the last word belong to the person with the highest rank and while negotiating
they will not take decision immediately as it does not belong to them. AIter the meeting
they will contact their supervisor to report him the outcome and ask Ior the decision.
This proves that rank is extremely important in business relationships and you must
keep rank diIIerences in mind when communicating. This means that questions should
be addressed respectively to the ranks i.e. Only director can ask questions another
director it would incorrect iI assistant did so instead. However in comparison with other
Asian cultures like Japan gender bias is nonexistent in business.
It would be dangerous iI would lose sight oI the Iact that communication is oIIicial,
especially in dealing with someone oI higher rank. Treating them too inIormally,
especially in Iront oI their peers, may well ruin a potential deal. It should also be
noticed that the Chinese preIer Iace-to-Iace meetings rather than written or telephonic
communication. ThereIore such way oI communication should be used as oIten as
possible. In western societies it is common to discuss and negotiate business matters
during inIormal meetings like golI, sports centers etc. However in China meals and
social events are not the place Ior business discussions. There is a clear distinction
between business and socializing in China, so it is advised not to intertwine the two.
. Business Meeting Etiquette
When you want to start business relations with Chinese you have to make an
appointment. As mentioned beIore appointments are necessary and, iI possible, should
be made between one-to-two months in advance, preIerably in writing.
Also in case iI you do not have a contact within the company, use an intermediary to
arrange a Iormal introduction. Once more aIter the introduction has been made, you
should provide the company with inIormation about your company and what you want
to accomplish at the meeting. You should arrive at meetings on time or slightly early.
The Chinese view punctuality as a virtue and you should keep this deep in your mind.
Arriving late is an insult and could negatively aIIect your relationship and put you on
the losing position Irom the very beginning. Pay great attention to the agenda as each
Chinese participant has his or her own agenda that they will attempt to introduce. You
should send an agenda beIore the meeting so that Chinese partners have the chance to
meet with any technical experts prior to the meeting. Discuss the agenda with your
translator/intermediary prior to submission as to avoid any misunderstandings which
could have an adverse eIIect on the meeting . You must be aware that each participant
will take an opportunity to dominate the Iloor Ior lengthy periods without appearing to
say very much oI anything that actually contributes to the meeting. Be patient and
listen. Chinese people unlike western ones do not speak straightIorward and there could
be subtle messages being transmitted that would assist you in Iurther negotiations with
the counterparts. Meetings with Chinese people require patience. Mobile phones ring
Irequently and conversations tend to be boisterous. Never ask the Chinese to turn oII
their mobile phones as this causes you both to lose Iace.
When it comes to organization oI business meeting guests are generally escorted to their
seats, which are in descending order oI rank. Senior people generally sit opposite senior
people Irom the other side. It is imperative that you bring your own interpreter,
especially iI you plan to discuss legal or extremely technical concepts as you can brieI
the interpreter prior to the meeting. Written material should be available in both English
and Chinese, using simpliIied characters. Be very careIul about what is written and
make absolutely certain that written translations are accurate and cannot be
misinterpreted as I could lead to serious disputes about the subject. Visual aids are
useIul in large meetings and should only be done with black type on white background.
This is because colors have special meanings and iI you are not careIul, your color
choice could work against you. Presentations should be detailed and Iactual and Iocus
on long-term beneIits.
. Business Negotiation
As mentioned beIore hierarchy oI ranks is very important in China so be prepared
that only senior members oI the negotiating team will speak. That is why you should
designate beIorehand the most senior person in your group as your spokesman Ior the
introductory Iunctions. Business negotiations occur at a slow pace. Moreover you must
be prepared Ior the agenda to become a jumping oII point Ior other discussions. As we
mentioned while discussing the speech style oI Chinese people they are not
straightIorward and are non-conIrontational. They will not openly say 'no', instead they
will say that 'they will think about it' or 'they will see'.
As Chinese negotiations are process oriented, they want to determine iI relationships
can develop to a stage where both parties are comIortable doing business with the other.
Process oI decision making may take a long time, as Chinese people require careIul
review and consideration. One oI the most crucial things that you have to remember is
that under no circumstances you should lose your temper or you will lose Iace and
irrevocably damage your relationship. Another no less important thing is not to use
high-pressure tactics. Your business partners might Ieel oIIended by such moves and
you might Iind yourselI outmaneuvered. In China business is hierarchical and decisions
are unlikely to be made during the meetings you attend. . The Chinese are shrewd
negotiators that why it would be better to leave some space Ior negotiation in your
starting price.

. What to Wear?
In China business dress is conservative and unpretentious. It is used that
that Men should wear dark colored, conservative business suits while omen should wear
conservative business suits or dresses with a high neckline. In addition women should
wear Ilat shoes or shoes with very low heels. Bright colors should be avoided.
. Business Cards
As to ritual oI business cards exchange, in China business cards are exchanged
aIter the initial introduction oI the partners. You should have one side oI your business
card translated into Chinese using simpliIied Chinese characters that are printed in gold
ink since gold is an Iortunate color. Your business card should include your title. And iI
your company is the oldest or largest in your country, that Iact should be on your card
as well. When oIIering your card you should hold the card in both hands with Chinese
side Iacing the recipient. When given a business card Irom the counterpart, examine a
business card beIore putting it on the table next to you or in a business card case. Never
write on someone's card unless so directed.