Napoleon referred to China as a 'sleeping dragon', saying that when he awakens, the world would have to shake. Since it began to become apparent that the lethargy was ending, the world has begun to shake; not only anticipating the political and economic consequences, but also trying to take advantage of new opportunities.
It is that China is, above all, a giant; perhaps too big to be ignored. Its population is larger than that of South America, Africa, and the Middle East combined; or about 40 times the population of Argentina. Its population is the best educated in underdeveloped countries, with more engineers than any other country except the United States. It is one of the most important export destinations today.
Cultural differences.
Chinese culture differs from Western culture in many ways, including the way of doing business. The behavior of the Chinese still shows today a great influence of Confucian ideas and values. Faced with the idea of social mobility and individualistic achievement typical of Western culture, for Confucianism the harmony and well-being of a society depend on the maintenance of an order in social relations -of a pyramid type- in which each individual accepts their role and he behaves and relates to his superiors and subordinates in a manner consistent with that role. Knowing these cultural differences becomes a fundamental asset for success in business in China.
Success depends on Guanxi.
The "Guanxi" -literally "relationships" - is probably the most important concept in the business world in China. By "Guanxi" is meant a network of relationships and contacts between people, who cooperate with each other and exchange favors. People who have developed a wide network of contacts have a great asset in “favors”, which are decisive in business; Without "Guanxi" business success is unlikely. At the same time, our contacts will expect from us the same disposition to favor them, if necessary - “favor with favor is paid”.
Developing a good "Guanxi" is the first step to enter into business with China, even if it costs time and money; since our businesses will depend on the relationship that we have established with our partners, suppliers and clients. These relationships are not only at the company level but also at the personal level, and are formed and strengthened transmitting respect, loyalty and reliability. Relationships should not be promoted just before a sale, but should be established gradually; and, once the contact is generated, it must be maintained over time if you want to continue doing business in China.
Doing business in China .
While no one will expect us to speak perfect Mandarin or to be proficient in the Shaolin monks' martial art - although showing interest in Chinese culture and tradition will be highly valued and appreciated - moving objects in an office that is ordered according to Feng Shui, or confusing a Japanese tradition with a China, can irritate our partners. Therefore, it is essential to previously study local customs and codes and use cultural differences in our favor.
Some important recommendations:
- Conversation:
Before traveling it is convenient to study aspects of the Chinese language, culture, history and geography. Efforts to learn about their culture will be recognized and valued and will help develop a better “Guanxi”.
Informal conversation is especially important at the start of a meeting. Some topics of conversation are: the landscape, architecture and art of China, its climate and geography, positive experiences in the country, the positive changes in its development and trips to other countries that we have made. Avoid giving your opinion on controversial political issues that may offend your interlocutor.
Avoid giving negative responses. Instead of "no," say "it could be" or "I'll think about it." In the same way, when the Chinese say "the problem is not serious" it should be interpreted as "there is a problem".
To address a person use their title and last name. When possible, use your official titles. Married women generally use their maiden name, especially in mainland China.
- Behavior:
As a first greeting it is increasingly popular to shake hands. Eventually, the greeting may consist of a slight nod. Leaning the body in the most traditional way is not very usual. In any case, wait for the other party to initiate the gesture.
Avoid using your hands when speaking.
Avoid hugging or patting when greeting; Chinese people, especially those with more authority, do not like physical contact with strangers. Public displays of affection between people of different sex are frowned upon.
The people of more authority or age in a group expect to be recognized and greeted before the rest.
Spitting in public is very common among Chinese people, but it is a habit that is no longer acceptable.
- Negotiation:
The most important negotiating tools in China are humility and patience.
Personal cards must be delivered with both hands. When you receive the card from your correspondent, read it carefully before storing it.
When negotiating with a translator, be sure to look at your business counterpart.
If something was not well received in a meeting, it will not be communicated to you. Surely at the next meeting your interlocutor is someone else - and probably of a lower rank.
According to the protocol, in a business meeting people must enter the meeting room in hierarchical order. Higher-ranking people are expected to lead the negotiations. Subordinate interruptions can be frowned upon.
Chinese negotiators know that whoever has taken the trouble to travel to China will not want to turn empty-handed and will use this as an element of pressure to achieve their goals. It is important to make it clear that you are willing to not reach an agreement before doing bad business.
It is also wise to let them know that they are not the only ones with whom they have an opportunity to do business in China.
In negotiation it is essential not to show emotion; act calmly and patiently and accept delays in the agreed terms.
- Business meals:
As business lunches grow in popularity, the most common occasion for doing business is dinner, which starts around 18:00 and lasts about two hours.
Generally the host sits in the center of the table, facing the door. Beside him sits the guest of honor. The rest are seated from the center out in descending order of hierarchy.
It is very common that 20 to 30 dishes are served. It is important not to eat too much in the first courses to be able to taste a little of each one.
Leaving a dish unproven can be offensive. At the same time, finishing a plate completely is a sign that the quantity served was not enough.
It is very common to toast on several occasions while the business meal lasts. The first toast is proposed by the host.
Tipping is generally considered an insult.
- Superstitions:
Colors: red is a symbol of prestige and prosperity; gold, moreover, is a symbol of power. Black and white are associated with funerals, so they should be avoided.
Numbers: Eight is related to good luck, happiness and prosperity. The Four, on the other hand, is considered unlucky since the word is pronounced very similarly to the word 'death'.
Turning the iron bar into a needle.
According to the Chinese proverb, "an iron bar, by force of being sharpened, can become a needle." The moral: nothing is achieved without patience, perseverance and commitment. And this is especially true in business with China. While the world is shaken with the awakening of the Dragon, if we know and take advantage of cultural differences, we can avoid being consumed by its fire and we will find in China a land rich in challenges and opportunities.
Make an appointment in China. Preparation and development of the meetings
It is very important to have the services of a translator to better understand all the issues that are negotiated and the subtleties of your language; expressions can have different meanings depending on the context in which they are used.
You should speak in short, clear sentences, free of any jargon or slang. Taking breaks is a good way to allow time for our interlocutors or our translator to understand us better.
Sometimes, you may have to make some presentations to different levels and levels within the same company or institution. Its great hierarchy and its different levels of organization give rise to this type of situation.
Before starting your presentation, make a sufficient number of copies to distribute among all the people present at the meeting (the delegations are usually quite numerous). The best documentation that we can deliver of the presentations are the copies that are made in black and white, because the colors have many meanings and nuances for them. Therefore, it is better to avoid any type of problem or compromised situation.
All the agreements that you reach with your Chinese interlocutors must be viewed with great caution due to the nuances that many of the words may have.
Except for the Chinese in the West, Chinese people in business tend to have good feelings and trust in people, helping their personal experiences with you to form opinions and settle differences.
There are still many businesses and people who base much of their beliefs on the political line of the Communist Party. This line usually dominates much of the negotiations in these cases.
All the demonstrations that you make, even if they are based on evidence and experiences, are accepted by them as long as they do not contradict the doctrines of the party or offend the feelings of other people or groups.
In this country, most of the responsibilities and decisions rest with the Communist Party and government advisory bureaucrats. The individuals who work in these organizations are also responsible for their decisions and actions.
Local decisions are made by the group head of the representation (the representation head). In the Chinese business culture, the group's mindset is of great importance, and is superior to any kind of individual opinion. This occurs even in companies that have a liberal thought and slightly adapted to western business philosophy.
There is a concept that we must be clear about when dealing with Chinese businessmen.
It is the concept that they know as "Saving Face", a concept that is very important to understand. It refers to knowing how to save a situation and maintain a good opinion of yourself (what is known as "maintaining the type"); It encompasses very general concepts about a person and refers to her status and social representation. "Losing face" for various reasons can be a disaster for the future of your business and for other possible future businesses. In our countries the translation would be to lose the reputation, the good reputation. Therefore we must avoid any type of situation that could make us lose the respect of our hosts, because if something like this happens, we will not have anything easy to do business in China.
Chinese protocol expects that for a meeting with several people, people enter in a hierarchical order, that is, in order of importance. For example, the first to pass would be the head of the foreign delegation (or the largest representative of the foreign delegation).
Due to the great importance they give to the hierarchy in China, our delegation must have important people among its components. You must have some type of top-level command or executive. They will do the same and will have among their ranks some important position in the meeting.
Typically, only group leaders or bosses carry the "singing voice" in presentations, even if the general opinion of the group is taken into account. Interruptions by other participants are not well considered. Shifts must be respected. Everyone can comment, but the presentations, and we can say, that the singing voice is carried only by the heads of the delegations.
In the Chinese business culture, humility is a virtue. If there is too much arrogance or too much arrogance, it will not create a good negotiating climate and the Chinese are suspicious of attitudes like these.
They never say "no" directly, but always like to leave a door open to hope. They will answer maybe, maybe, we are not sure, we will think about it, etc. You should not use a sharp "no" either, but you should act like them, and although in the end it is a negative, always leave this doubt with expressions like those given above.
The Chinese often try to drag negotiations out a lot, to try to get the best terms for themselves.
They can extend their negotiations even longer than initially agreed. Even at the last moment, already prepared for signing agreements and contracts, they can try to renegotiate some point, or a good part of the points. Keep this in mind so as not to be surprised.
You must be very patient, never show nervousness or discouragement, and calmly accept your long deliberation. Try not to agree too many terms or dates, as this type of limitations is not usually to your liking. Count on several trips to China for your own planning before your negotiations come to fruition. They are very suspicious and need to take a certain "trust" in us and our company to do business. Closing a deal with them is a long task and requires a lot of patience.
At the end of the meeting, the first to leave the premises are the guests and lastly they do so. Keep in mind that once the contract is closed, they can insist on changing certain points or agreements they have signed. They are always trying to improve their conditions, even if it is by breaking the rules in a way.
Business lunches and other entertainments. Negotiating over lunch?
Business lunches are becoming common in large capitals, but not in small ones where they still retain many local customs. Business lunches are a custom that the Chinese are importing from the West. Not so work breakfasts, an activity that they do not practice. What does exist in some small towns is a "morning tea", but that cannot be considered a working breakfast, but rather a welcome courtesy.
Afternoon banquets are much more traditional in China. These events are usually held in the afternoon to have more time to enjoy them; They usually start at 5.30 or 6 in the afternoon. They are quite long and very ceremonial, especially when there are guests from outside. You should never be in a hurry in such encounters and should be very open-minded as you cannot make the hosts ugly, which would jeopardize your relationships.
If you arrive early, your hosts are likely already there, and will treat you in a more relaxed and less ceremonious manner than when the banquet begins. Banquets are mainly held in restaurants, and rarely, especially when there are many diners, are held at the home of the hosts.
When taking a seat we must be very careful, because they highly value the importance of precedence (hierarchy). Therefore, it is best that we wait for them to tell us where we should place ourselves, and thus avoid some uncomfortable or compromised situation.
As a general rule, the seat in the center of the table, facing the door, is reserved for hosts. The highest ranked or honored guest sits to the left of the guest.
The rest of the guests will be placed from greater to lesser degree of importance.
Also the oldest member of the banquet has a preferential place at the table.
All these rules must be taken into account if you are the one who organizes such a banquet. The best, in this case, is that you hire the professional services of someone native to the country to guide you on these issues. Don't let a social gathering spoil your business expectations.
The host is the person who marks the beginning of the meal. Once the host begins to eat, taking a first sip of his glass before (generally making a toast with everyone present), the rest of the diners can start eating as well, not without first following a small ceremony that we explain below.
If you are the host you should take the best piece or piece of your plate and deposit it on the plate of your guest of honor, after taking a first sip from your glass.
This is a gesture of courtesy and an indication of the friendliness of that meeting. So if you are the guest, don't be surprised if the host serves you something on your plate.
You should not discuss any business topics during the meal. They highly respect this meal time as a time for personal relationships.
Don't be scared if you see a lot of food, as the Chinese like to entertain their guests abundantly. You can see food for 15 or 20 people, even if you are only 6 or 8 people. Now, in the end there should not be much food left over as it can be interpreted as not liking the food. They like that their guests are well satisfied, so you should give hints that you are (even if you have to pretend a little).
Rice, contrary to popular belief, is considered a simple accompaniment, and can be served at the end of the meal. If you want to take it with a certain dish that has been served to you, the best thing you can do is request it from the waiter or waitress (shou jie). It can be taken with food of all kinds. If you eat rice from a bowl, keep it close to your mouth as is the custom in that country.
At a banquet of some importance, up to 20 or 30 food dishes can be served. The secret in the case of Chinese food (or any other in which many dishes are served), is to eat only a little of each of them.
Never try to leave a plate completely clean (what is known in Spanish as scraping a plate). They can interpret that he has eaten everything because he has not had enough, and they can consider it as a small offense. The same from the opposite side; leaving a plate untouched is considered a contempt for the hosts. At least try it a little. The best thing as we said before is to try a little of all the dishes, for simple and pure courtesy. They will be very grateful for this detail.
One of the most important parts of etiquette in China is the Tea ritual, known as "yum cha". It is widely used to establish a first contact before a meeting or during a meal. If you don't want more tea served, you should leave some in your cup. Otherwise whenever they see it empty they will interpret that you want more tea and they will serve you again.
If you are served food that does not require a cutlery or chopsticks, they will put a bowl of water to clean your fingers. But you should only do it when you finish eating that food.
The normal thing is that they have a wide variety of dishes for you to take from the one you want.
At and as it is recommended in many parts of this website if you do not know how to do it, it is best to observe how your hosts do it and follow these guidelines.
If you find nuggets, bones or any other kind of "small inedible items", carefully place them on the plate that is there and even on the table, but never in the bowl where you eat.
They value that you know how to eat with chopsticks, so it is good to practice before going to a meal with them. When you finish eating, it is best to put the chopsticks back on the table. Leaving the chopsticks in the bowl in parallel says it brings bad luck. So never do it even to pause. Be careful with the use of chopsticks, because certain positions of the chopsticks may represent the use of chopsticks for certain Chinese religious rituals.
You should also not put the chopsticks in your mouth, you should only use them to transport food to it. Falling chopsticks is interpreted as a sign of bad luck, so be careful not to fall.
Drinking with a little noise is not considered a lack of education for them; on the contrary, for them it is a sign that they are enjoying what they are taking.
There are little used foods in our western cuisine, but for them they are a delicacy and as such they are offered: scorpions, lobsters (not shellfish, but insects), snakes, dog meat, turtles, etc. All of them are considered luxury dishes for their gastronomic culture. They are what we can call their "delicatessen". Make an effort to try them out, even if you don't like them too much.
In some cases, they may end up using toothpicks at the end of the meal; Although you can use them at the table, do it in the most discreet way possible.
Establishing a good personal relationship (guanxi) is very important for your subsequent business relationships. You should also participate in the ritual of the typical Chinese drink. If you do not participate in any of the phases of a meal, you can create mistrust between them and you, and it is not good for your business relations with them. If you cannot drink, for medical, religious reasons, etc. You must let them know so they don't get offended.
Toasts are generally made with beer, wine or some type of liquor; they are an important part of the Chinese food ritual. The same goes for drinking some type of Chinese liquor. They usually have their own ritual both when serving and when drinking it.
There are different types of cups and glasses for each drink.
You must be careful which one you use at all times. There are special glasses for Chinese liqueurs called "matoai" and "wu liang ye".
The host of the banquet is the one who makes the first toast. If you do not drink for the reasons stated above (or for personal reasons) you can perfectly toast with a natural juice or simply water, but it must accompany in the toast. Toasts are quite popular in Chinese foods; there are two, mainly: the "ganbei" and the "kai wei".
The Chinese enjoy watching their guests drink, known as "lou wai." However, we must be careful because they have liquors of a high graduation such as the "er gua toe" that can make us "lose our minds", so the most advisable thing is to drink but with something in the stomach (you have to eat something before).
If you want to smoke, in addition to asking permission, you must offer it to all the diners at the table.
The end of the meal is usually determined when the fruit is put on the table, and they give us a warm, wet washcloth to wipe our hands with. Once we have reached this phase of the meal, we must prepare to finish the feast. According to the Chinese label, the host is not the one who leaves the table first, but the guests will be the first people to leave the table.
If you are invited to a banquet, you must subsequently correspond with a banquet with the same characteristics. Now, never try to beat your hosts as it can be considered an offense.
The best way to entertain your hosts is to return the invitation in a traditional Chinese establishment. They are not used to western foods and therefore will not appreciate being invited to a good French restaurant, for example. It is better to invite them to the same type of food they are used to.
When it comes to hosting, it is best to try to stay a long time before our guests arrive at the venue. Being late or not present when guests arrive is a lack of courtesy and an offense to them.
Body language in China
Be careful with expressions and gestures, as they are highly regarded with body language. Try to be as expressionless as you can as your gestures can lead to misinterpretations. The Chinese are not very expressive speaking, and therefore do not usually use their hands to gesture. You have to be careful when we talk because they are annoyed by people who shout or speak loudly (with a high tone of voice).
The gestures that you make with your hand must take care of them, because as in the case of colors, there are movements of the hand that can be interpreted incorrectly by them. To call someone do not use your index finger but the whole open hand and bringing the fingers towards you. How to close the fingers on the palm of the hand. It is pointed with the whole open hand, not with any finger.
Beware of physical contact; An important rule for your relationships in China to keep in mind is "Never touch." The Chinese are not friends of physical contact, so it is recommended to never have any kind of contact with them, hugs, slaps on the back and, of course, much less give a kiss on the face.
Also, do not extend the handshake greeting for long, or place your other hand over the hands that are waving; also do not take the arm of the person you are shaking hands with. These kinds of "affections" are not customary and therefore are not well regarded, and can be a violent situation for you and for them.
Movements with the hands. It is never pointed with our index finger. If you want to make an indication, you must do it with the palm of your open hand. Similar to when you indicate with your hand that you give way to a lady at a door, for example.
Nor should you use your index finger to get a person's attention (a waiter, a bellboy, a clerk, etc.). You must use the palm of your hand again, and with a joint movement of all the fingers bend them inward to indicate that it requires your presence or attention. Close the palm of the hand.
Snapping the fingers is considered a lack of education and is not a correct way to act for them. Also, don't make any weird gestures with your fingers.
Feet. It never occurs to you to put your feet on a table or chair. The feet always have to be on the floor together. Never make a gesture with your feet, or pass a box or bundle with them. Feet as we always say very still on the ground.
Nose. The Chinese do not see it as too hygienic to blow their nose with a handkerchief that we then return to our pocket. The best thing is that you use any type of tissue paper and deposit it, once used, in a trash can.
Although this custom is changing, thank God, and it's not that common to see it anymore, don't panic if you see some Chinese blowing their noses without using any kind of tissue or cloth handkerchief. They do it directly to the ground, in the street without more. For them it is not a lack of education but a custom that was generally admitted.
Doing business in China. Meetings and Appointments. Puntuality. Behavior.
When you make a business appointment, write down all the data correctly (date and time). The cancellation of an appointment or the lack of punctuality in China is an offense for the person or people who wait for him. You must be very punctual to get off to a good start in China. As always in these cases, it is best to arrive a certain time in advance (better to arrive a little earlier than a little late).
Your country's embassy can help you prepare for your business visit to China and guide you on the main steps to take. They can also provide helpful contacts and a good list of addresses where you can go.
Also (highly recommended), as in many other countries, it can be done with the services of a professional or a local consultant, who will know how to better indicate the steps to follow in your country (a highly bureaucratic country). These firms streamline the bureaucratic procedures necessary to successfully conduct business in China. It is worth hiring their services for the large amount of work and issues that they solve and / or facilitate.
These mediators can help you achieve a good "guanxi", the literal translation of which we can say would be "establishing relationships", a concept of great importance in business China. Establishing a good "chain of relationships" facilitates the development of good business in China, without as much effort as it would require us to do in a more isolated way (not to say that it would be practically impossible). These relationships build loyalty and trust between the parties by conveying a respect for each other (remember they are quite ceremonial). Having a good "guanxi" is not a question of speed but of patience and tranquility. You cannot go "straight to the point" but you have to go step by step, at your own pace.
The usual office hours are from 8 in the morning to 5 in the afternoon from Monday to Saturday. However, in the larger cities, the westernization of their customs has led to working hours being from Monday to Friday. In most of the offices and dependencies of the Government, Fridays for the part are dedicated to internal political questions and it is not a good date to put any type of meeting with these authorities. This time of Friday afternoon is known as the "political study" of the officials.
Store hours are usually from 9 a.m. to 7 p.m. But, as is the case with offices, the most commercial capitals can open many of their shops until 10 at night.
Most workers have 2 hours at noon to eat; This schedule is usually between 12 in the morning and 2 in the afternoon, approximately. Its system is so hermetic and checkered, that practically at this time all commercial and any other services (even the most necessary) are closed.
The best dates to arrange interviews and meetings are from April to June and from September to October. When scheduling your visits and appointments keep in mind the holidays of the Chinese calendar that do not usually coincide with those of the western calendar. One of the most important dates is May 1, when shops and companies can stay closed for a week. The date is not always the same, since the official announcement of the party depends on the authorities.
Among the holidays established by law are New Year's Day (January 1), with a day of rest; the Spring Festival, the New Year of the agricultural or lunar calendar, with three days of vacation; International Day of Working Women (March 8); Arbor Day (March 12); International Labor Day (May 1), with three days off; Chinese Youth Day (May 4); International Children's Day (June 1); the Foundation Day of the People's Liberation Army of China (August 1); Teacher's Day (September 10) and the National Holiday (October 1), with three days of vacation.
As for the great traditional festivals of China, the Festival of the
Spring, the Festival of Lanterns, the Festival of Purity and Clarity, the Festival "Duanwu" and the Festival of Mid-Autumn. The ethnic minorities keep their own festivals, for example, that of "Throwing Water" of the Dai ethnic group, the great Nadam festival of the Mongols, that of "Torches" among the Yi, the "Danu" of the Yao, the " March Fair "between the Bai ethnic group, the" Geyu "of the Zhuang, the" Losar "(Tibetan New Year) and the" Ongkor "(the Harvest Festival) of the Tibetan ethnic group, and that of" Tiaohua "(dance with flowers) among the miao.
Greet. Forms of greeting in China
The Chinese population is very ceremonious and this is reflected in all areas and in many situations. One of them is greetings. The way of greeting, increasingly westernized, combines a mix of own culture and western culture.
When you enter a meeting you shake hands like in the rest of the countries. What we can appreciate is that the Chinese bow their heads slightly when they greet us. It is a custom inherited from their traditional type of greeting that they have been westernizing, in favor of the increasingly popular handshake. Reverences are no longer in use, at least in most of the usual relationships.
Bowing in China, when done, unlike Japanese bowing, is done from the shoulders to the waist, and not just with the head as the Japanese do.
Do not touch. The Chinese are not friends of physical contact, so it is recommended to never have any kind of physical contact with them, hugs, slaps on the back and of course, much less a kiss on the face.
Also, do not extend the handshake greeting very long, or place your other hand over the hands that are waving or take the arm of the person you are shaking hands with. These kinds of "affections" are not customary in your country and therefore are not well regarded. We can even make them uncomfortable if we act in this way.
Presentations. As presented in China.
The presentations in China are usually very formal and we can even say that they are quite austere. This is due to the fact that they have a great sense of duty, they do not show their emotions in public and they are quite serious in everything they do, especially facing the outside.
From what has been said above, the Chinese are not easy to smile at us or make any other gesture or expression when they introduce us, since they have been educated not to openly show their emotions in public. Therefore, we should not take its "seriousness" seriously.
The Chinese often introduce themselves to their interlocutors with the position they hold in the company and the name of the company. You should try to present yourself in the same way that they do, so we establish a uniform way of introducing ourselves and help better understanding by everyone. An example of valid presentation would be: Technician Joan Sepúlveda, from the company Gen Desarrollos Avanzados.
They have some peculiarities when it comes to saying hello, such as when you are presented to a group of people (from a factory, from a school, etc.), you can be greeted and greeted with applause from them. You, if you want to be well educated, must return these applauses.
Presentations and greetings.
The greeting most used in China during the presentations is " ni hao ma " which comes to mean the same as for the English "how are you", how are you or how are you.
Respect and precedence. The oldest person is the one who starts the presentations; in this country there is great respect for the elderly.
You should greet the older person before doing so to any other person. The youngest must always greet the oldest.
If we have to make a reception line, we must put ourselves in the place that corresponds to us, always leaving the oldest person at the bedside. If we are the ones who have to greet in a reception line, it will be the oldest person we have to greet first, if the reception line is well made. Age-based precedents are widely used throughout China.
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