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5 Reasons Why You Need To Understand Chinese BusinessEtiquette

Are you doing, or planning on doing, business in China?

As we know, China offers a great many benefits to our companies, whether it be as a manufacturing base, or a placeto import and sell our goods to.

However, it's not like a trip to Canada, New Zealand, or another Western country!

China has a very foreign culture to Westerners, and, most obviously, a difficult language to learn. The foreign natureof Chinese culture also has a great effect on doing business there, as Chinese individuals and organisations tend todo things very differently.

That's why, as a foreign business-person with an interest in China, you'd be well advised to prepare yourself byunderstanding Chinese business etiquette before you visit.

If you can hit the ground running, you're going to have an advantage over your competitors, and build relationshipsmore easily in China.

Read on for the 5 reasons why you need to understand Chinese business etiquette in order to get results for yourbusiness...

Let Me Tell You A Story...

When I first came to China 7 years ago I was woefully unprepared. I hadn't learnt any of the language, nor did I knowanything about the culture, with the exception of the usual Western stereotypes. I had been for a few weeks on afamily holiday in the late 90s, and I thought that this prepared me...How wrong I was.

As an English speaker perhaps I can be forgiven for not knowing how to speak Chinese, however it was a mistake toknow nothing about the people, their culture, and the way that they do business.

My goal was to find suppliers of consumer electronics, and also ladies' dresses for my family business. After manycringe worthy months of meeting the Chinese, and dealing with them as the hard-nosed salesman that I was back inthe UK, I was getting nowhere.

I was seriously considering packing up and going back to the UK, because that was 'safe.'

Now 7 years later I have a career here, am married to a local, and have a network of both Chinese and foreign friendswhich really helps me to find new business opportunities.

What changed?

My attitude.

I realised that the only way to get ahead in China was to stop swimming against the tide.

I ditched the business-like attitudes that work in the UK, and started to befriend my contacts. Even when things didn'twork out in a business sense, I was surprised to see that these people often still kept in touch and would invite me outfor a dinner and a drink.

Uncharted territory for a British person used to formal, impersonal business relationships!

Every country is different to an extent, but in China you need to be especially mindful to leave your pre-conceivednotions about 'how to do business ' in your hotel room, and do as they do!

Based on my experience, I have put together a FREE E-book for you in order to help you to avoid the same businessmistakes that I was making: The 10 Step Guide To Chinese Business Etiquette.

However, before you read that, let's look at the 5 reasons why you need to understand Chinese business etiquettemuch better than I did all of those years ago:

1. Avoid Giving Offence

Did you know that declining a cup of tea out of politeness could cause offence? How about speaking with a contact's colleague about your dealings, for instance if they happened to be out of theoffice?Should you bow, or shake hands?If you give a gift, could it upset the person you're giving it to?

There are many intricacies when it comes to doing business in China. These small matters may not affect thebusiness that you are discussing, however should you inadvertently give offence by committing a faux-pas that isn't atall rude in your country, this could scupper the whole deal.

Part of understanding the way that the Chinese do business, is understanding all of the subtleties about how theyconduct themselves in a business environment, and falling in line with these.

2. Understand The Role Of 'Face.'

'Face' in China is how your reputation is measured. As a newcomer you are probably considered to have littlereputation, and to be fair to the Chinese, they don't know you yet. However, there are things you can do to have face(有面子), as well as losing it!

For instance, if an element of your negotiation with a Chinese counterpart wasn't going to plan, and you were a littlecritical of them (in a professional way to help the process along), this would cause them to lose face. Be prepared tomake an enemy for life if that happens!

Whilst bringing up a negative point in the West and talking it through may be constructive, it's not going to work aswell in China (except perhaps in private), because feelings will be hurt.

3. "You Scratch My Back, & I'll Scratch Yours"

Doing favours for favours, or just to earn respect and to be 'owed one' is endemic in Chinese business.

Having someone who owes you a favour speak to a business contact they know for you could be the differencebetween you getting a deal, or not. Also, by being a helpful partner, you're going to earn more favours and strengthenyour personal relationships, or Guanxi (关系).

The stronger your relationships, the easier it is to do business in China; after all, more high-quality connections willopen more doors for you in future.

4. Learn Why You Won't Initially Command Any Trust

No matter how well-respected, or senior you are in your country. If you're new to China your counterparts are unlikelyto trust you.

The trust system in China is opposite to that of the West, where trust is ours to lose based on our actions, orbehaviour.

In China you'll need to earn trust first, and this can be hard going if you don't know how that is done with your localcounterparts. Why would you? Doing business in the West isn't dependent on trusting the person before you evenspeak about business. That will come, or not, in time based upon how your discussions go, and you certainly don'tneed to be friends with a business contact.

5. "When In Rome..."

As I've hinted at, a lot of things are going on outside of the office in China before you'll even discuss business. Thiscould be meeting local contacts for social events, dinners, shows, or even meeting their families.

See this as a kind of vetting process, if you like (but a nice, fun one).

You don't need to be Chinese, but you'll need to at least tip your hat to their culture. Perhaps you should try somelocal food that is unfamiliar to you, or you might need to drink a little more than you normally would while singing atkaraoke. If this can get you a win for you company, it can't be so bad, right?

Ready To Master Chinese Business Etiquette?

Wouldn't it be great if you could take the driving seat and be inviting your Chinese counterparts to do the things thatare going to earn you trust, strengthen your relationships, and so get you better business results in China?

You CAN.

As I said, all of these issues can be avoided or understood, as long as you have a basic grounding in the way that theChinese handle themselves in business before you get off the plane.

If you want that advantage over the unprepared stick-in-the-muds who are arriving in China and expecting everyonejust to cater to them, then you can click below and download the FREE E-book that's going to help you to achieveyour goals there. All of the above points, and much more, are explained at length; giving you the best chance to makea great first impression in China: