When it comes to business, China needs no introduction. Known as the 'World's Factory' for its massive manufacturing industries, it's one of the biggest and most influential economies on the planet, producing everything from electronics to apparel. Companies around the world have strong business ties with China, and its economic prowess holds incredible political sway across the globe.

As a country of strong history and traditions, great importance is placed on business etiquette here. Navigating these customs can lead to more fruitful partnerships and relationships, as you'll learn in this comprehensive guide to Chinese business etiquette.

Punctuality

Hierarchy

Greetings

Business cards

Business attire

Gift-giving

Business meetings etiquette

Dining etiquette

Things to know about doing business in China

Finding success in China business culture

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Punctuality

In China, punctuality signifies respect for others' time and commitment. Arriving late to a meeting can be seen as disrespectful and unprofessional. It's advisable to arrive a few minutes early to demonstrate your dedication. However, it's essential to note that flexibility might be appreciated if your Chinese counterparts arrive slightly late due to traffic or unforeseen circumstances.

Arrive on time for meetings, appointments, and work-related events. Or, even better, arrive 10 minutes early to showcase your organization and time-management skills.

Hierarchy

The Chinese hold the elderly and those in positions of authority in high esteem, and likewise, Chinese business culture often emphasizes hierarchy and respect for seniority. Address individuals using their appropriate titles and surnames, followed by their positions. Wait for senior executives to initiate discussions, and avoid interrupting them. Subordinates are expected to defer to superiors in decision-making processes.

Titles and positions are crucial, so always address individuals by their appropriate titles (e.g., Herr for Mr. and Frau for Mrs.).

Greetings

Greetings play a vital role in Chinese business interactions. A firm handshake is appropriate, but don't overdo it. More commonly, a slight nod or a simple greeting like 'Nǐ hǎo' (你好) suffices.

When addressing someone, use their title or honorific, followed by their surname. Building rapport through polite conversation before diving into business matters is highly regarded. It is difficult to conclude business deals in China without first building a personal relationship with your Chinese counterpart and establishing trust between you.

Even if you have an interpreter present, learning some basic phrases in Mandarin is another way to show respect for your Chinese hosts.

• Hello – Nǐhǎo
• Goodbye – Zài jiàn (tzay jiann)
• How are you – Nǐ hǎo ma
• Nice to meet you – Hěn gāoxìng rènshi nǐ
• Thank you – Xièxiè (Shieh-shieh)
• Please – Qǐng
• Yes – Shì (Sheh)
• No – Bù shì (Bu-sheh)
• My name is... – Wǒ jiào... (Wuh jeow...)

Business cards

Exchanging business cards has long been a key part of typical Chinese business culture. But more recently, the electronic exchange of contact details (typically via WeChat) has become the standard. If you are planning to do business in China, establishing a presence on WeChat can be helpful.

If you are still exchanging physical business cards, ensure that your business card has your information in both your native language and in Mandarin, usually one language per side of the card.

Present your card with both hands and ensure the Chinese side is facing the recipient. Receive cards respectfully and take a moment to read them. Never immediately place cards in your pocket; instead, lay them on the table during the meeting. This gesture demonstrates respect for your counterpart's information.

Business attire

Chinese business attire mirrors that of Western culture in that it's very formal and conservative. Men usually wear business-formal attire, like suits or button-down shirts with slacks, while women typically wear a blouse and skirt. Dark, solid colors are preferred, and it's best to avoid flashy accessories or overly casual clothing, as they might be seen as unprofessional.

Gift-giving

Gift-giving is deeply rooted in Chinese culture and signifies respect and goodwill. When presenting gifts, use both hands as a sign of respect. Gifts should be of good quality but not overly extravagant, as excessive displays of wealth can be off-putting.

Avoid giving clocks or items in sets of four, as they're associated with funerals. Instead, opt for gifts like tea, sweetsl, or items from your home country. Bringing something that is personal or significant to you is best, like a regional food delicacy from your home area. The exchanging of gifts is an important part of building a business relationship with your Chinese counterpart and should be taken seriously.

Business meetings etiquette

In keeping with its very formal business culture, Chinese meetings are similarly very structured. But due to the importance of strong relationships, time is still made for strengthening bonds before and after the meeting.

Here's what to expect at Chinese business meetings.

Scheduling and arrival

• Reach out to set up meetings well in advance.
• Be thoroughly prepared for the agenda at hand. Have enough paper materials for everyone, make sure you've rehearsed your presentation, etc.
• On the day of the meeting, arrive 10 minutes early in formal business attire.

Greetings and seating

• Exchange greetings once everyone has arrived, giving particular respect to the most senior person.
• Present gifts at this time, expressing appreciation and thanks.
• Exchange cards if necessary.
• Take your seat following your host's instructions.
• Most meetings will start with small talk.

Discussion and negotiation

• The main part of the meeting will be very formal and to the point, sticking to the agenda.
• Be patient and wait your turn to speak and contribute.
• Be attentive and take notes.
• Chinese business culture values consensus-building and harmony. Decision-making might take longer, as it involves input from multiple parties. However, higher-ups will typically have the final say.

Conclusion and follow-up

• After finalizing any action items or to-dos, finish the meeting by thanking everyone for their time.
• After the meeting, there might be a period of networking and socializing, like a meal. Engage actively in these interactions, as they provide additional opportunities for relationship building.
• Send a follow-up email expressing gratitude for the meeting, summarizing key points discussed and confirming any agreed-upon action items.

Dining etiquette

Meetings with small talk being exchanged before diving into business matters.

But the pinnacle of Chinese business meals is the business banquet. These formal meals usually take place at round tables with large, rotating trays covered with food in the center. By spinning the tray, everyone can try a bit of all the dishes. While these meals may involve business talk, they're always usually times for socializing.

In order to avoid causing offense during these important and formal meals, follow these table manners:

• The highest-ranking individual usually sits at the head of the table, if there is one, with seating descending in order of importance. Your Chinese hosts will likely direct you to a seat.
• Wait for the host to indicate it's time to begin eating.
• Use your chopsticks to grab food from the communal dishes and put it on your personal dish.
• When toasting, hold your glass lower than that of your superior or the person offering the toast.
• Always offer food to others before serving yourself and try a bit of everything to show appreciation for the meal.
• There's a belief in Chinese business culture that you don't truly know someone until you've been drunk with them, so you'll likely be offered plenty of baijiu, which is a strong Chinese rice wine. If you're able, take part in toasts and cheers and enjoy, but try not to go overboard.

Things to know about doing business in China

• Face: You can't do business in China without understanding the concept of 'face.' In plain terms, face is essentially your social standing or your dignity; it's similar to the phrase 'saving face.' In China, they say, 'Men can’t live without face, trees can’t live without bark.” That's how crucial it is to Chinese culture. In relation to business, this means treating people with respect, not embarrassing them, and making them feel important and valued. Disagreements or challenges can cause someone to 'lose face' in the eyes of their colleagues, which can derail entire business deals. That's why it's important to tread lightly and respectfully, always helping others (and yourself) save face.
• Mandarin is king: Even though China is a leading economic superpower, holding meetings in English is the exception and not the norm. Mandarin is the lingua franca throughout most of the Chinese business world, with the exception of Cantonese in Hong Kong and Macau. If you don't speak Mandarin or Cantonese, always ensure you have an interpreter or translator available.
• WeChat: Instead of email, many Chinese people prefer to communicate with colleagues using the popular messaging app WeChat. This is the preferred method of communication in both business and social settings, so you'll be missing out if you stick with email. You can easily download the app and set up an account prior to your trip to China, and then you can use it to message and communicate with your Chinese counterparts.
• The importance of relationships: Known as guanxi, Chinese people place great importance on strong interpersonal relationships with high levels of trust. Although you should always maintain a respectful, professional demeanor, doing things like using WeChat, exchanging gifts, and exchanging small talk all help your Chinese business partners get to know you better. The better they know you, the more comfortable they'll be in doing business dealings with you.
• National holidays: Avoid setting up business meetings or important deals during major holidays, like Chinese New Year.

Finding success in China business culture

By showing respect for traditional Chinese business etiquette, you pave the way for more productive and enduring partnerships in this hugely influential country.

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