Preparation is Key When Planning Business Meetings in China

The short scene below emphasizes the differences in Chinese business culture vs. Western business culture, and how quickly the tide can turn if the Western businessman does not understand the culture and traditions of the Chinese.

The time is 7 pm, and the place is outside a restaurant in Beijing, China. American businessman Jim Simpson, 35, sales representative for Carstech Electronics, arrives at a Chinese restaurant to meet with two Chinese businessmen, Lee Eun-Cha, 60, co-owner of Lee-Chang Audio-Visual, Inc. and Chang Qinglin, 35, co-owner of Lee-Chang Audio-Visual, Inc.

Action!

Jim Simpson emerges from taxi in front of the restaurant, and gives a two-handed Texas wave to the two Chinese gentlemen. "Hey, Qinglin," he yells, "Good to see you again!" As he reaches the two men, he hands each of them a package wrapped in black with a white ribbon. "A little something for each of you," he comments. He pumps Mr. Chang's hand in a true two-handed Texas handshake, then turning to the older gentleman, he grabs the man's business card out of his hand, stuffs it into his pocket and repeats the handshake a second time. "And this must be your "silent partner", huh? The "brains" behind the outfit?" Winking at Mr. Chang, he pats Mr. Lee on the shoulder and says, "Nice to meet you, Lee. I'm looking forward to doing business with your company. Let's go inside and get a table and start hashing out the details, what do you say?"

A scene similar to this one is played out countless times a day in the United States. The representatives of two companies meet over a drink or a meal, discuss the details of a potential business deal, and come away at the end of the evening with a good understanding of what details should be addressed in the contract that they will now begin drafting.

But the scene above does not occur in the United States; it occurs in China. In the two minutes that it took for this scene to play out, Jim Simpson has committed numerous errors in Chinese business etiquette that will most likely result in Carstech Electronics losing the business deal they hoped to sign with Lee-Chang AudioVisual, Inc. What did he do wrong? The question should be: What did he do right? And the answer, unfortunately, is "not much!"

The "Two-Handed Texas Wave" and the Yell

Using the hands when talking is frowned upon in China and, where acceptable, the "body language" should be subtle. Talking loudly is also frowned upon, so yelling to his hosts as he approaches them is also a "no-no".

Speaking to the Younger Man First

In the United States, addressing the person you have met previously is almost always the norm. We then expect that person to introduce us to the others that we have not met. In China, age is paramount and the elder person in a group is always addressed first, as a sign of respect.

The Gift

Gifts are important in Chinese culture. They symbolize the hope for a successful business relationship. But the gifts should not be extravagant, as this will cause personal embarrassment, and they should never be wrapped in white or black, as these are "colors of mourning" in China. Gold or red are the most appropriate colors for gift-wrapping.

Handshake

A long, light handshake is the norm in China. Handshakes may continue for as long as ten seconds. Strong, pumping handshakes are not appreciated. The U.S. businessman should always wait for the Chinese businessman to extend their hand first.

Business Card

Business cards are sometimes an "after-thought" in the West - we hand them out like candy, and most probably are tossed in a drawer or (gasp!) the trash. But the tradition of giving someone your business card in China is very important, and there are certain customs that should be followed. The card is always offered with two hands, and is accepted with two hands as well. When you are given a business card, you should take a moment to study it. If you are at a table when you receive the card, it should be laid out on the table, not stuffed into a pocket or bag.

Joking Remark

The concept of "face" is very important in China. They use this term as those of us in the West would use the word "reputation". Unfortunately, one of the quickest ways to cause a Chinese person to "lose face" or respect is to say something jokingly, or "poking fun" at someone good-naturedly, which the Chinese interpret as a sign of disrespect. More information can be found on this subject by reading the very intensive and excellent article by Associated Content Producer John Melendez called The Concept of 'Face' in Chinese Culture.

Pat on the Shoulder

The Chinese do not like being touched by strangers, especially if they are older or in a position of authority.

Addressing Someone by His or Her Last Name

Calling someone by just his or her last name is commonplace in the West, but it is a serious sign of disrespect in China. Always address them by their surname along with their title (such as Mr. Lee, Director Han). Do not start calling a Chinese person by their first name until they ask you to do so, and even then, when in the presence of others, you should revert back to calling them by Mr. or Ms. as a sign of respect.

Rushing the Relationship

The Chinese do not rush into personal or business relationships, and believe in building relationships before they consider building commercial transactions. Much of this belief in relationship building comes from the Chinese concept of guanxi or "relations". This concept goes hand-in-hand with the concept of "face" in Chinese culture, and you can read another excellent article on the subject, also written by AC Content Producer John Melendez, entitled The Concept of 'Guanxi' in Chinese Culture.

Business Dinner

Meals are a form of entertainment in China, particularly evening meals. They are usually formal, often extravagant, and business is not discussed. In addition, there are numerous customs that should be adhered to, and "faux pas" that should be avoided when dining in China. Simple U.S. habits or traditions, such as offering the first toast, cleaning your plate, placing a chicken bone back into your bowl, can be seen as rude or disrespectful if done during a Chinese meal.

As you can see, the business customs in China differ widely from those in the West. Any businessperson planning to do business in China would be wise to spend a considerable amount of time reading about these and other customs before meeting with his Chinese counterparts. China is seen as the "new frontier" for many in the West, but this frontier is heavily laden in centuries-old customs and traditions that must be honored and respected if the West wishes to do business with the Chinese people.