Duty, self-sacrifice, gentleness and wisdom are other traits admired by the Chinese. They consider that relationships are more important than tasks and that the search for virtue is more important than the search for truth.

The Chinese do business with people rather than companies. Personal contact and loyalty are important. They value, sincerity above all other qualities.

20.4.0.11 – Behaviour profile

Chinese business is based on the development of good personal relationships over time, relationships, out of which the business grows,

formal and quite ritualistic in business behaviour, although this is changing with the return of US-educated Chinese and the emergence of younger people in the workplace. Chinese people can be quite relaxed and will always be on time for meetings and also social occasions. Cancellation or lateness may be seen as insulting unless very good reasons are given. Chinese people are quite reserved and separate emotions from business.

CommunicationIntroductions in China will be courteous and formal: expect to take a fair amount of time over them on your first visit. The highest-ranking member of your group should lead the way. You might be greeted by applause from your hosts, in which case the polite response is to applaud back. The Chinese are sensitive to titles, so use them whenever possible (E.g. Director, Engineer). Don’t address a Chinese person with the word ‘comrade’, a privilege reserved for Communist Party members. If you don’t know a person’s title, use Mr, Mrs or Miss until you’re advised otherwise. In Chinese names, the surname comes first and the given names second. So Mao Tsedong was known as Chairman Mao, not Chairman Tsedong.

Interpreters are often used in discussions, but never make the mistake of talking to the interpreter and not the boss. In discussions with the Chinese, check whether they’re talking about today, tomorrow or several generations in the past or future. Unlike Indo-European languages, Chinese does not use verb tenses to differentiate between the past, present and future, so a Chinese person might say, “I eat chicken yesterday,” rather than “I ate chicken yesterday.” Time is indicated by the context of the sentence or by specific time indicators, so Western visitors must ensure that they clarify times and dates for appointments and in contracts.

Allow for a moderate attention span of about 30 minutes when presenting. Stress the benefits of your proposal for China and for the bottom line. Remember that the Chinese rarely say ‘no’. Instead, they will hint at difficulties, so be sensitive to this. Show commitment and enthusiasm to your project, and repeat your key points several times. Don’t assume that silence means acceptance, and avoid asking personal opinions.

Office protocol
Organisation

20.4.11 – Planning meetings 

Office hours tend to be 9 am – 5 pm with half-day Saturday although five-day working weeks are becoming more common. The key break is between noon and 2 pm when there is a general break in the working day. Note that in the week before and following the Chinese New Year, many offices are closed.

20.4.12 – Teamworking 

Chinese teams are groups of specialists working under a leader, who is the acknowledged head of the group. He may not be a specialist but will have high seniority and links to the head of the company or administration you are dealing with. It is important to show respect to the team leader and to refer issues to him in the first place. Anyone to one contact between members of the team should be authorised by the team leader first.

The Chinese like to experience harmony and consultation within a team. Team members expect to see their views expressed in the outcome of a project, although implicit obedience to the team leader is also expected. There is a strict hierarchy and a clear chain of command in Chinese businesses. The working pace tends to be slow and methodological, and deadlines are regarded as flexible. Give praise, make your instructions clear (but in a kindly way), and check the team’s progress regularly. Emphasise the moral and social aims of the project.

If there is disagreement, manage the problem in private, and always use an impersonal approach. Say, “Our partner was disappointed that the deadline you missed,” not “You missed a deadline and now our partner is angry.” Stress harmony: “Yesterday we won four new clients,” not “Yesterday I negotiated deals with four new clients.”

20.4.13 – Meetings and negotiations 

Agendas are adhered to in China, but expect slow, repetitious dealings: patience is essential. The Chinese like to establish general principles before moving on to a detailed discussion. They also take the long view – sometimes extending over several generations. Be prepared to discuss problems at length to achieve total agreement, and be ready to understand their difficulties – these may be linked more to social matters or relationships than to the business. Don’t push for information, and despite any irritation that you might feel internal, maintain a flexible but firm negotiation style and remain polite at all times. Relationships are considered more important than tasks in China, so your aim should be to develop mutual trust in the long term.

Be prepared to restate your position – several times. Be aware that ‘Yes’ in China means ‘I hear you’ and not ‘I agree.’ A Chinese may also say ‘yes’ whereas Britons or North Americans would say ‘no’. ‘Is it ready?’ Englishman: ‘No, it isn’t.’ Chinese: ‘Yes, it isn’t.’ Check what’s really being said.

Subordinates in your team should not interrupt business meetings. Other tips: don’t assume that a smile equals satisfaction, or that agreement equals understanding. Business cards are important, and it can be useful to have yours printed in Chinese on the back.

Leadership and decision-making. Organisational structures in China are vertical. A manager will seek consensus from his team but will take personal responsibility for decisions. One potential difficulty for visitors is that a manager’s authority is often based on his wealth and family background, rather than purely on his competence at the job. Personal connections will also influence decisions. All of this, together with language difficulties, makes it hard for visitors to read meetings and negotiations accurately. In addition, family businesses tend to belong to trade groups, which will also exert pressure.

Decisions are made slowly in China, but will have a long-term effect: unlike many western organisations, the Chinese are not obsessed with achieving short-term successes that make look impressive but have not been fully thought through.

Be prepared to invest time and money in visiting the decision-makers regularly. Show respect for their decisions but modify them discreetly, behind the scenes privately, not in open meetings. Be patient, and allow your hosts plenty of time for reflection.

You’ll find a difference in leadership style between older and newer organisations. The latter will tend to move faster and be less formal. Even so, don’t be too forceful, and be careful not to express too many differences of opinion in public.

20.4.14 – Women in Chinese business 

The position of women in Chinese society has improved dramatically since the advent of Communism in 1949, but they still hold only a few senior seats in government and business. Women visitors to China, therefore, receive special respect by virtue of being foreign.

It’s important for a visiting woman to establish her credentials and expertise. One way might be to send an agenda, with brief biographies of your team members, before meetings. Dress conservatively – trouser suits are acceptable – and be prepared to be stared at – you’re unusual. There will also be some unintentional rudeness in the form of cigarette smoke, or a door slamming in your face. Avoid alcohol if you can, or drink very little.

Moderation is expected of women in China, and many Chinese women don’t drink at all. If you see women being treated in ways that you don’t like it is important not to be cautious in your reaction. The principle of respect means that women may be expected to be polite and respectful to senior men, which may be seen as sexist by some westerners. Don’t react to this. They have considerable authority in the domestic domain and individuals have considerable power in politics and administration as well as in commerce, particularly in Hong Kong, China and Greater China (Taiwan).

Remember you hold special status, as a foreigner.

Socializing and gift-giving

Chinese people tend to get up early and go to bed early, so expect to eat lunch around noon and dinner at about six for around two hours. Hospitality is an important tradition in China, and sharing the bill is unknown. You must reciprocate, however. Tea is always served in mugs with lids: never refuse.

You’ll probably be honoured with at least one banquet during your visit, and you’ll find the following guidelines useful. Eat lightly – there may be a dozen courses.

Your host may serve the tastiest food directly to your plate, but don’t reciprocate. In the south soup may be served at the beginning of a meal, but in the south, it arrives at the end. There will be no dessert, but fresh fruit might be served. Rice at the end of a meal is intended as a filler: you don’t have to empty your plate!

Use chopsticks, not your fingers, if you need to remove food from your mouth.

The host will sit opposite the door, the honoured guest to his right. Speeches and toasts will happen. Remember Ganbei! (dry glasses) is the common and expected toast. The evening will end when the host stands, usually soon after the last course. It is important to reciprocate with a return banquet if you have time during your stay in China. The Chinese like to invite visitors to their homes, even though the conditions are unlikely to match your own domestic circumstances.

20.4.15 – Gift giving

Gifts are important, as is the wrapping. Gold and red are good, but avoid black, white or blue (funeral colours). Offer gifts with both hands and don’t open any that you receive in the presence of the giver. Make it clear that the gift is from your company to their company. Post-visit gifts – calendars, cards – are also appreciated. Unless you are invited to do so, don’t take partners to business entertainment.