Business

Business in China is based on two things: relationship and practicality.

Relationship
The old sales adage says that ‘people buy from people first.’ Nowhere is that more true than in China. Where Westerners expect short, punchy interactions and a focus on key points without small talk, the Chinese expect face-to-face and social interaction over a period of time that shows commitment. This will usually involve meals, toasts and exchanging of gifts.

If the principle in the West is: “What are you selling? If it’s any good, we may become friends;” then in China, it is: “Who are you? If we become friends, I’ll buy whatever you’re selling.”

The Chinese do not respond well to cold calling and new relationships are generally established by an introduction from a trusted third party. Thus the Ministry of Commerce initially would not talk to Jersey Finance except through the China-Britain Business Council; and the Ministry of Finance was unwilling to meet Jersey Finance without an introduction from the Ministry of Commerce.

The focus on relationship also means that Chinese are very conscious of their place in the social hierarchy. People are usually addressed by their title rather than their name, and it is quite normal for strangers to ask each other their age, marital status and salary since this information ensures people interact appropriately. Seating positions at meals will be carefully arranged; people will not speak before their seniors or without their seniors’ invitation.

Photos are popular in business as they are tangible reminders of relationship and a good way to follow up on business meetings.

Practicality
Chinese practicality means that their primary concern is: does it work (save or make money)? The Chinese are generally reluctant to be first movers, wanting assurance that a product has been tried and tested so a key question will be: “Who has bought this?” The reverse is also true – “if someone I trust has tried and tested it, I will buy it and so will my friends.” This means that case studies, illustrations and customer references are key to sales in China.

A practical approach also means the Chinese like to be prepared and they will be reluctant to talk in more than vagueries if items of business are not clearly spelled out. A clear agenda and list of attendees for any meeting submitted in advance will maximize productivity.

The Chinese are increasingly familiar with Western ways and expect you to be different, so you don’t need to reinvent yourself and the Chinese will help you with formalities like seating arrangements. However, being aware of Chinese cultural norms (etiquette) will help you to understand your counterparts, to make a good impression, and to build relationships.
 

1 - Etiquette
2 - Do's & Don'ts
3 - Logistics
4 - Gifts & Symbols