How to Do Business in China – Cultural Tips

July 6, 2016

Many consultants say good relationships are the key to running a business, and they are right.

So it applies in China, too. Relationships can be built in many ways: over a good dinner with a potential partner, visiting partners’ companies and meeting decision-makers, inviting them to play some games, or go traveling and sightseeing. You will get to know them better by participating in these activities with them. Some Chinese people appreciate your attention and thoughtfulness in arranging these activities for them.

Chinese concepts of leadership are often quite different from what western people might think.

The Chinese view on traditional leadership is, in most cases, “whoever has the position, is the leader and makes the decisions”. This perspective may have been influenced by the Chinese governmental leadership method and traditional education. One form of western leadership involves guiding and influencing people, which motivates employees towards continuous development and better results. In order to gain the most from employees, it is therefore important to create the company culture in such a way that employees have the opportunity to participate in open communication.

Chinese people seldom say a direct ’No’ to business partners.

Chinese people communicate in a more indirect style to avoid causing possible embarrassment to the other party. So, if you sense there are some hesitation while Chinese are answering, in most cases, the answer is a ’No’. The manner in which the hesitation manifests can vary widely from occasion to occasion. Some examples include “I agree with you, but…”, “I will try my best, but…” If you need to disagree, give yourself more time by saying, for example, ‘I need to take some details into consideration before I can come back to you on this issue’. Such answers will often be appreciated by the Chinese. This way you do not close the door for good, but express your hesitation politely.

It is important to understand the difference among people from different parts of China.

China is one of the most diverse countries in the world. China consists of very different kinds of people of different ethnicities. Remember that you need to adapt your cultural knowledge based on the people you are dealing with. Here again trustworthy relationships with local business partners matter a lot. A good partnership often acts as a cornerstone for you on which to expand your business network.

Last but not least, culture at dining table is important.

Business is handled more at the dining table than over a meeting table. The culture also varies from different parts of China. But, generally, one tip which might be the same throughout China, is to do a “bottoms up”, at least when your business partner proposes it to you. This shows your respect and sincerity towards your business partners.

Wish you success in China!