When you go to China to do business, you should learn something about the business etiquette and culture in China. This section will provide you up-to-date and relevant information that will help you learn the way the Chinese approach negotiations, discover how you can respond to them, and learn how to negotiate a successful conclusion. You will also find out how to socialize for success, how to cope with specific problems of living and working in China, and the best way to treat Chinese visitors to your organization. You are given practical advice throughout on business etiquette, and on how to fit into Chinese cultural expectations in order to achieve your goals. The column covers numerous aspects of business protocol, including gift-giving, negotiating tactics, appointments, business entertaining, cross-cultural communication and more.
If there is something more you would like to know on the practical side of things do not hesitate to call the Chamber and we will put you in touch with one of our members who can assist you.
Tips on Business Protocol, Banquet Etiquette, and Gift Giving
If you are working with Chinese colleagues, customers or vendors, your business relationships can only be enhanced by increasing your knowledge of Chinese business customs. Following are a few tips on business protocol, banquet etiquette, and gift giving.
Business Protocol
China is a relationship-oriented culture. Don't rush your Chinese colleagues into business discussions. Take time to make personal conversation and let the business discussion wait.
Privacy and personal space are not held sacred. If your Chinese counterpart stands closer to you than is comfortable, try not to back away, since doing so will send a subconscious negative signal.
Try not to put people on the spot with questions. Phrase things in a way that allows the person to maintain face.
If you are introduced to a group of people (for example, if you tour a factory), you may be greeting with applause. You should also clap in greeting.
The Chinese handshake is generally quite soft; don't use your power handshake or pump the other person's hand.
Banquet Etiquette
If you are being hosted in China, you are certain to attend at least one banquet. The most important thing to remember about banquets is that they are social occasions, a time for you and your Chinese colleagues to get to know each other better and to celebrate your relationship. Therefore, it is in your best interest to accept an invitation to a banquet, even if you are suffering from jet lag. To turn down an invitation to a banquet, especially one held in your honor, signals that you are not committed to the relationship and can seriously damage your relationship.
The Chinese have a saying, "Drink more, deeper friendship." Toasting and drinking are a big part of Chinese meals, especially formal ones. The Chinese, however, typically drink more than is customary for the average American. You can participate in the toasting with wine instead of whiskey, and without draining your glass each time. If you do not drink alcohol, you can plead a medical condition or "doctor's orders."
Be careful about drinking alcoholic beverages, especially at a business function. The traditional toast of ganbei means "bottoms up" and comes with the expectation that you drain your glass. As an alternative, consider sui-yi, which is more along the lines of "Please feel free" and allows you to sip your drink instead.
Your place setting will include chopsticks and a porcelain spoon. Use the spoon only for soup. If you are not familiar with chopsticks, try to learn; it will be greatly appreciated. In larger restaurants you may be able to request a fork; however, Western silverware is often not available outside of large cities and in small restaurants.
When you aren't using your chopsticks, place them on the chopstick rest, if one is available, or on the table. NEVER stick them upright in the your rice bowl, which is reminiscent of a funeral ritual, or balance them on your rice bowl, which is considered bad luck.
Seating at a banquet is very exact. Where one sits is based on title and seniority. For more formal occasions, name cards delineate the seating arrangements; in less formal circumstances, you will be directed to your seat by your host. Therefore, when you are invited to attend a banquet, wait to be shown to your seat. If you are the host, be sure to get advice from a Chinese colleague to ensure proper seating arrangements and be sure to fulfill your role in seating your guests.
Giving Gifts
Gift giving is an important part of the Chinese culture, and everything from the gift itself to the wrapping has significance. There are many occasions appropriate for gift-giving.
At an initial meeting, you should expect to give a modest gift. A gift such as an illustrated book of your state or country will be to the group, in which case it is presented to the leader. Your gift will most likely be proudly and prominently displayed at the company's offices. A smaller, token gift, such as pens with your company logo, may be given to each member of the group. If you are giving individual gifts, no one gift should be of greater value, as this will only embarrass the recipient.
Gift giving creates an obligation to the recipient. Therefore, it is more prudent to accept and give gifts on behalf of your company, where no personal obligation can be attached.
There is a certain protocol to keep in mind for the actual acceptance and giving of gifts:
Give and receive gifts with both hands.
In order not to appear greedy, it is appropriate to decline the gift a few times before accepting it. Be prepared to gently "insist" that your gift be accepted, and humbly decline a gift offered to you. As a rule of thumb, you might accept the gift on the third offering.
Gifts are not opened in the presence of the giver. Do not insist that your gifts be opened, and wait until later to open gifts given to you.
Wrapping is important. Gifts should be simply but elegantly wrapped, although the wrapping should not be more opulent than the gift. You can ask for wrapping assistance from the store clerk (if you purchase it in China) or the hotel concierge.
The color of the wrapping paper is very important. Red has good connotations, as do pink and yellow. On the other hand, avoid white, black or blue, as these colors are associated with death.
Other Useful Information
Government Communist state. President and vice-president elected by the National People's Congress for five-year terms. Administrative divisions: 23 provinces, 5 autonomous regions and 5 municipalities
Visas L-visas for single or multiple entry for tourists are valid for 30 to 60 days. F-visas for business travel can be valid up to 6 months but may require the visitor to leave every 30 days. They are good for single, double or multiple entry. Those seeking business visas must obtain official invitation from a government office or a company authorized by the Ministry of Foreign Affairs.
Currency The RMB (Renminbi) is the official currency. The basic unit of RMB is the yuan, also known as kuai, divided into 10 jiao, which is again divided into 10 fen. Yuan notes come in 1, 2, 5, 10, 50 and 100. Click here for currency conversion.
Credit Cards In Beijing, most major credit cards -- including American Express, Diner's Club, Federal Card, JCB, MasterCard and Visa -- are accepted at major hotels, restaurants and shops.
Tipping Tipping is generally not expected in mainland China.For more information on business and social etiquette in Beijing click here.
Useful Numbers (in Beijing) Police: 110 Fire Department: 119 Ambulance: 120 Tourist Hotline: 6513-0828 Local directory assistance: 114 (Chinese); 2689-0114 (English) International directory assistance: 100 Visa Card Hotline: 10-800-110-2911 MasterCard Hotline: 10-800-110-7309 (only in certain provinces)
Electricity The voltage is 220 volts, 50 cycles. Most luxury hotels have built-in converters in bathrooms for shavers, hair dryers, etc. Otherwise, come equipped, because a wide variety of plug types are in use.
Health Risks Potable water is available only at top hotels, so visitors should always ask to make sure. Prior to your trip, consult your doctor on immunizations you might need (e.g. tetanus, typhoid, cholera and hepatitis A and B) and about malaria suppressants if you're planning to go to rural areas. Bring all prescription and over-the-counter medicine you might require.
Time Zone GMT + 8 hours, same as Singapore. The whole of China is set to Beijing Time.
Business Hours Offices in Beijing generally open from 8:30 a.m. to 6 p.m., with a lunch break of about an hour. Government-stipulated work days are from Monday to Friday. Banking hours and days vary from bank to bank in Beijing. However, most Chinese banks are open from 9 a.m. to 4 p.m. or 5 p.m., and have branches that are open on Saturdays and Sundays. Shops generally open at 9 a.m. and close between 7 p.m. and 9 p.m., and are open on Sundays. For more information on doing business in Beijing, click here.
Holidays Jan. 1-2, New Year's Day; Jan. 24-26, Chinese New Year; March 8, International Women's Working Day; May 1-2, International Labor Day; May 4, Youth Day; June 1, Children's Day; July 1, Anniversary of the Founding of the Communist Party; Aug. 1, Anniversary of the Founding of the People's Liberation Army; Oct. 1-2, National Day. Click here for more information on Chinese customs and culture.
Climate Extremely diverse, from tropical in the south to sub-arctic in the north. Beijing has a continental monsoon climate with clear-cut seasons. Spring is dry and windy. Summer is hot and humid. Autumn offers the best weather, with generous sunshine. In winter, the city is severely affected by freezing winds from Siberia. Click here for 3-day weather forecast for Beijing.
Clothing Normal Western business attire is considered appropriate for doing business in China.
Ethnic Groups Han Chinese: 91.9%; Zhuang, Uygur, Hui, Yi, Tibetan, Miao, Manchu, Mongol, Buyi, Korean, and other nationalities: 8.1%
Language The official language is Mandarin (or Putonghua, based on the Beijing dialect). Local dialects include Yue (Cantonese), Wu (Shanghaiese), Minbei (Fuzhou), Minnan (Hokkien-Taiwanese), Xiang, Gan, Hakka dialects, and other minority languages. Most tourist hotels have staff who are fluent in foreign languages.
Literacy Rate 81.5% of total population
Religion China is officially atheist, but traditionally pragmatic and eclectic. Daoism (Taoism), Buddhism and Islam are practiced by about 2%-3% of the population; Christianity by 1%
