CHINA’S BUSINESS & CULTURAL ETIQUETTE &

TIPS

As one of the largest economies in the world, China’s has become a top business

destination for many companies across the world, especially for product

outsourcing.

Sourcing low-cost, high-quality goods and material from China has been very popular among large companies for a while now.

Today, advancements in technology and logistics have allowed smaller enterprises and individuals to start taking advantage of it too.

Despite a recent fall in international trade, China remains one of the top exporters for consumer goods, furniture, décor and more.

UNDERSTANDING CHINA’S BUSINESS ETIQUETTE AND CULTURAL MORES

When you’re doing business with any overseas supplier, it’s important to understand their culture as well as business dos and don’ts.

Chinese suppliers and vendors are more likely to adapt themselves to your culture and respect cultural differences.

Making an effort to understand their cultural and business standards can help you build better personal relationships.

SOURCING FROM CHINA IS ON THE INCREASE

#1 – PUNCTUALITY

The Chinese business culture place a heavy emphasis on punctuality

Your Chinese counterpart will likely reach a few minutes early

Plan to show up for a meeting with at least 15 minutes to spare

Planning your itinerary well (to show up before time) allows you to manage unforeseen traffic or other delays

Showing up late is not just bad manners, but may be considered an insult to the person you’re doing business with

#2 – BUSINESS CARDS

Appearing without a business card is considered a bad business practice, so keep a full stock

Try to get dual-sided business cards, with English and Mandarin translations

Even if you’re handed business cards in Mandarin, “study” them for a few seconds to show respect

Always hand over your cards individual-to-individual, never keep them in a stack and ask people to take one

Don’t write on someone’s business card in their presence, or put business cards in the back pocket of your pants, wallet or face down on a table

#3 – GREETINGS

Accept business cards with both hands, indicating respect for the person giving it to you

If the person you’re meeting does not reach out to shake your hand, then nod or bow instead

Shaking hands is becoming quite common at business meetings though, so offer a firm and quick handshake

If you are introduced to a group and they applaud, acknowledge this greeting with a smile and applaud back

Greetings begin with seniors, so start with the oldest or most senior person in a group

#4 – NAMES AND TITLES

Chinese names are traditionally two-part, with the family name first (e.g. Li Michael - Michael is the given name and Li the family name)

Address people with their title and family name, unless they invite you to use their given name (e.g. Mr. Li or Director Li)

While “Mr., Mrs., Miss + family name” is a good formula to follow, many prefer to use their government or professional titles

Business guests will normally be introduced with full titles and company names, so try to do the same (e.g. Mr. John Smith, Senior Design Head at ABC Corporation)

When in doubt, ask business people how they would prefer to be addressed

#5 – BODY LANGUAGE

Stand up, nod and bow slightly when accepting business cards or greeting someone

For the Chinese, physical contact with strangers is uncomfortable – don’t hug, back slap, lock arms or put your arms around someone’s shoulders

Clicking your fingers, whistling, putting feet up on desks/chairs are all considered extremely rude actions

Do not beckon to people with your index finger. Instead place your palm facing down and move your fingers in a scratching motion

Do not point with your index finger, use your whole hand in an open position instead

#5 – GIFT GIVING

Gifts are an integral part of long-term Chinese business dealings, and do not have negative connotations

Do not offer gifts for no reason, or when there is no one else around but you and the recipient

It’s considered very rude to refuse a business gift, but equally so to not reciprocate with a gift of your own

If you’re asked what you would like, be open with your preferences. Show an appreciation for Chinese culture by asking for handicrafts, etc.

Don’t offer cash as a gift, but instead pick out something unique and thoughtful

THE CONCEPT OF “FACE”

For business dealings in China, the idea of earning or losing “face” is very important. Loosely translated, this means 'good

reputation', 'respect' or 'honor'.

If you’re a first-time visitor and expect to have long-term business dealings with suppliers in China, it’s essential to

understand how this concept works.

EARNING “FACE”

One can earn “face” through experience and age, as well as honorable dealings and a good public image. Showing wisdom in action by avoiding mistakes increases face and thereby, the respect due to you.

Keeping a poker face in business dealings and displaying self-control greatly increases your face.

GIVING/SAVING “FACE”

You can give face to others, by giving compliments and showing them respect, especially in public. Others can give you face by offering compliments about you to a third party, or giving you compliments in public.

During business meetings and negotiations, if you show distress or surprise (by audibly sucking air through your lips and teeth) it’s a loss of face for the person offering the deal. Consider changing the proposed request/deal to allow your Chinese counterparts to save face.

THE BOTTOM LINE

This compilation of tips is meant as a basic guide to help you with your business dealings in China. There are many other things that may come into

play, like avoiding national holidays and not getting too personal/informal at meetings.

Remember, Chinese negotiators will show humility and deference during meetings, to present themselves as vulnerable and weak.

Placing you in the “stronger” position leaves much of the dealings in your hands, but if you show anger or frustration, this “weakness” will be exploited.

Use the services of a procurement or sourcing specialist if you’re unsure about your ability to handle negotiations with the Chinese.

Remain clear about what you want, check out all your options and go into your sourcing trip with a plan in place!

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