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Monday, June 6, 2016

10 Ways to Impress Your Chinese Business Partners

10 Ways to Impress Your Chinese Business Partners

Matthew MacLachlan

2 Feb 2016
China, an ancient country of etiquette and ceremonies, is a complex and diverse country. Navigating Chinese business etiquette and culture is key for any organisation wishing to succeed in this challenging market.


Although it takes time to get to know a market as large and complex as China, there are many things that you can do to impress your Chinese business partners. Learning about Chinese culture and a little Mandarin Chinese can go a long way to helping you to impress your Chinese business partners. Here are some more:
1. Don’t Assume All of China is the Same

The People’s Republic of China is approximately the same size geographically as the USA – with almost four times the number of people.  As with most large populations, Chinese people speak a number of local or regional languages and may belong to different ethnic groups.  People who visit China for the first time may be surprised about how modern it appears.  However, they should be aware that the pace of development is very different between different regions, with the interior of the country still less open than many coastal cities or Beijing.
Be careful to avoid using terms like developing country, former third world country, etc.  China is proud of its long and mostly dynastic history.
2. Be Aware of Geopolitical Sensitivities
Be especially careful to avoid contentious issues about Taiwan and Tibet, both of which the Chinese believe belong to them.  Be careful to recognise the current status of former Chinese colonies, including Hong Kong and Macau.  For example, it would be much better to refer to Hong Kong as ‘Hong Kong SAR’, rather than ‘the former British Colony of Hong Kong’.
3. Be Aware of China’s Self Image
Be careful to avoid using terms like developing country, former third world country, etc.  China is proud of its long and mostly dynastic history.
4. The 3 R’s
Take time to build relationships. The Chinese place great importance on being comfortable with business partners.
No, not Reading, wRiting and ‘Rithmetic, but Relationships, Relationships, Relationships.  Take time to build relationships, preferably in person whenever possible.  Organisations that are strongly transactional and task orientated are less likely to gain the trust needed from their Chinese counterparts. The Chinese place great importance on being comfortable with business partners.  They also look at these partnerships as a long term investment.
5. Connections
Guanxi – the concept of building solid business relationships – is the key to how business is conducted in China
Guanxi – the concept of building solid business relationships – is the key to how business is conducted in China.  It’s not only what you know but also who you know.  Make sure you know if your Chinese business partner has the right connections for your line of business.  Develop your own guanxi through frequent visits and accepting all invitations to meet and network with people.  Additionally, some organisations use a third party connection who can liaise between your organisation and your Chinese counterpart – they can raise difficult issues and shoulder the blame where necessary and can also be good cultural ambassadors.
Develop your own guanxi through frequent visits and accepting all invitations to meet and network with people
6. Learn about Chinese Motivations
Although profitability is important, so is status.  Make sure you understand how to market effectively in China and recognise that their motivations may be very different.  For example, a free offer of a product or service might appeal in some cultures but may raise the question of authenticity or quality problems in China.
7. Social Media
Do not assume that the communication tools you use at home will be effective in China.  Be aware that many social media and other websites popular in the West are blocked by the Chinese authorities, so using Facebook or Twitter would be completely ineffective.
Although English is the main language of global business, you may wish to reconsider your choice of language in China as many people are more comfortable in Mandarin, especially if you are trying to address the Chinese domestic market.
8. Remember Important Chinese Holidays
Although the Chinese are known for working hard and for taking fewer and shorter personal holidays than many other cultures, Chinese festivals are very important in their culture. Remember that the biggest annual migration worldwide is the Chinese returning to their family villages for Chinese New Year.
9. Get Advice on Gift Giving Etiquette
Gift giving has become more complicated in recent years, especially with the strict implementation of anti bribery and anti corruption laws.
On the other hand, gift giving remains an important part of doing business in some cultures, including China with its elaborate business etiquette.  Find the balance between compliance and cultural sensitivity and remember that some colours, numbers and types of gifts are very symbolic in Chinese cultures and could send the wrong message if not chosen wisely.
10. Try to Save Face Above All Else
Chinese business partners are looking to work with people they know and can trust
Don’t challenge your Chinese counterparts directly.  Develop the ability to read between the lines.  Learn to pick up on non-verbal communication.  They may have a very good reason for stalling or not revealing something to you.  Developing deep trust takes time and may be more likely to come through your third party.
Finally, remember that Chinese business partners are looking to work with people they know and can trust.  Doing business in China is a long game, with potentially great rewards.  Respect and patience will increase the chances of a successful business venture.

https://www.communicaid.com/cross-cultural-training/blog/top-10-ways-impress-chinese-business-partners/

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