We all know that the Eastern and Western cultures differ substantially. What perhaps not everyone knows is that there are a number of behaviours and etiquettes that it is preferable to know if you want to start a business in China, to avoid making an impression, offending someone or even compromising negotiations and relationships. Western companies willing to do business in China will find themselves operating in a very different environment: in this article we analyze 6 aspects that should not be underestimated.
1. Meeting Etiquette
If the negotiators are not prepared, some cultural nuances could cause a complete flop in the meeting room. According to the International Business Times, it is appropriate to start the meetings with circumstantial speeches, even long ones, in order to break the ice and show respect. In business meetings in China, it is important to show respect to the host, especially if the host is a socially or politically important person. It is good manners to get up every time he enters or leaves the room and, if the person in question is elderly, it is customary to offer him or her a seat.
Business cards are exchanged exclusively at the first meeting, holding them with two hands and read them at a later time. It is appreciable that the business cards are also written in Chinese, a sign of respect and commitment to the other party.
The handshake is another very important ritual, a formal gesture representing the beginning of a relationship or the signing of a contract: the Chinese one is generally soft but persistent. In the moment of the handshake, moreover, it is better to lower one’s gaze as a sign of respect.
In China it is more common to attend a series of small and private meetings rather than large ones. Don’t expect any decisions to be made during meetings: it is very common for final decisions to be made afterwards. It is crucial to feel comfortable when doing business in China. You should not rush things. As a result, patience is fundamental in order not to lose important clients and relationships: you must be able to respect this decision-making methodology, showing understanding and hiding any signs of impatience that might prove to be counterproductive.
2. Presents/gifts
Gifts are a fundamental aspect of Chinese culture. This thousand-year-old ritual has been the basis for many relationships, both interpersonal and business. There are situations where gifts are even more important than any signed contract. It is a good habit to present oneself with a gift, not necessarily expensive, at every visit, as a sign of good omen for the relationships that will be built. But don’t expect to see them unwrapped immediately: what counts is the value that the gift holds. Paradoxically, China’s reputation in the political-economic field has not distinguished itself in a positive way and there are many corruption stories that have emerged. However, the concept of gift in Chinese tradition is too profound and has not been affected by these episodes of corruption.
3. Face
A pivot point of Chinese culture is the “face”, a concept that could be described as a combination of prestige, reputation, dignity and honour.
Causing someone to ‘lose face’ will lower their prestige in the eyes of others. For example, in the workplace one should never criticize a colleague or point out a mistake that was made by a superior. In general, it is always preferable to avoid arguments that could cause embarrassment to someone and, in the same way, to disagree with your interlocutor. In general, Asians do not like direct confrontation and in most cases avoid saying a direct ‘no’. Imprecision and lies are often used to maintain balance.
Shouting or loudly arguing in public is not welcomed: the number one rule to save face in Asia is not to lose calm in public. On the other hand, you can lose face by insulting someone in public, refusing invitations or behaving inappropriately, perhaps ignoring Chinese traditions, or showing a lack of self-control.
4. Language
If cultural differences may seem tricky, the language is even more, especially in negotiations and business. Speaking in English would make life easier, but many people say that an English translation rarely makes sense of what you really want to say. Very often the transition from English to Mandarin Chinese is inconsistent because some corresponding words do not exist, or even more often, some sentences that are effective in English mean something else in Chinese (or don’t mean anything at all). Using an interpreter seems to solve many problems and avoid counterproductive gaffes.
5. Flexibility and rapidity
In China flexibility and rapidity are very much appreciated, even at the cost of losing something in terms of precision. Chinese SMEs are definitely customer-oriented and can quickly adapt to any type of request. This could be an obstacle for European companies, accustomed to slower rhythms and a very different degree of precision. It is good to leave aside the concept of perfection, as we know it, if you decide to do business in China. It is preferable to be fast and malleable to the demands received, rather than seeking a higher level of precision and accuracy.
6.Dress code
One of the most visible changes in the Chinese corporate landscape in recent decades is the dress code: the classic unisex suit, normally in shades of blue or green, has been overtaken by a westernized and freer style, especially in large cities and areas of high urbanization. Many men tend to wear suits with a shirt and tie, while women prefer suits with a sheath skirt and modestly cut blouses. Despite this “modernization” it is good to remember that in Chinese culture there is a deep respect for the working environment that also affects the right way to introduce oneself: sobriety and elegance mustn’t be neglected.
7. Business Women
Although great strides have been made to bridge the wage gap between men and women, there is still a wide gender pay gap in China and a certain cultural resistance to the role of women “far from the hearth”. While it can be said that Chinese women in recent years have managed to achieve important results in the workplace, it is equally true that they still suffer from the cultural legacies, which typically (and exclusively) sees them as mothers and wives. Nevertheless, it is increasingly common to meet Chinese women in positions of responsibility and indeed a small number of successful female entrepreneurs exist, but there is still a long way to go in terms of cultural acceptance and equality in the workplace.
Foreign business women are treated differently. They enjoy great respect and are in most cases involved in decision-making processes on an equal footing with men. One wonders, however, whether this is not simply a generalised question of respect for international trading partners. Without gender distinction.
