Chinese Business Etiquettes

Scott D. Seligman from hie experience living and working China made him capable of
writing this guide book. James McGregor, the former chairman of the American
Chamber of Commerce in China, said the original classic, "should be a mandatory carry-
on item for all business travelers to China." This book delves deeply into the concept of
how Chinese behave and why do they behave like that and also shows how can one deal
with any business or social situation. Therefore, it can be said that this book is
recommended toto anyone who is coming to China or just visiting, or dealing with the
Chinese professionally or socially in any country.
Important points that I found out in the novel:

 Understanding what the Chinese expect and why is the key to successfully doing
business with them.
 You will be treated in a specific way based on who you are and what situation you
are in.
 The core concepts of classic Chinese philosophy revolve around the idea that the
correct behavior is based upon relationships.
 The outward harmony pursued at all costs does not reflect a Chinese person’s
true thoughts or emotions.
 Saving face is considered of utmost importance.
 Intermediaries are used to make introductions since the Chinese do not like
doing business with someone, they consider a stranger.
 The Chinese genuinely like meeting foreigners.
 The Chinese are taught not to question the social order or to question authority.
 China has a vast bureaucracy that can be very frustrating to deal with, but there
are tips that can help.
 The Chinese are comfortable dealing with women in business and always treat
them with the same respect as men.

Summary

During the 1990s, China let go of its Leninist influences in favor of "socialism with
Chinese characteristics." After adding the influence of west regarding technology,
culture and manners, we have a very different China from before. However, some old
basic rules still apply in the business sector. Understanding "what the Chinese expect
and why they expect it is still, therefore, vitally important to all who wish to deal with
them as it is upon them on how they act with the Chinese that will ensure their success
and failure in business dealings.
“Even if you don’t play by Chinese rules, they always do.”
Situational specificity is at the core of behavior in China. This means that you will be
treated in a specific way based on who you are to a particular Chinese person or group of
Chinese, and what situation you are all in at the time. On how you deal with particular
business and social situations is slightly different in each type of meeting however the
basic etiquette applies during the each meet.

“Fewer people especially urban Chinese, fit old stereotypical profiles, and one now
finds examples - sometimes pervasive, sometimes isolated - of Western thinking and
behavior in even the most traditional of Chinese people.”
The core concepts of classic Chinese philosophy - Confucianism - revolve around human
relationships and the idea that the correct behavior is based upon situations and types of
relationship. You act one way toward those who are older, and another way toward
those who are younger. You behave in a more intimate, loyal manner with those closest
to you - the inner circle of your immediate family. However, you have no obligation to
extend any courtesies whatsoever to a stranger. Guests are not considered strangers.
They are treated in an often-elaborate manner devised just for them.

“Chinese still view the world through Chinese lenses, and most can’t help but look
askance at those who deviate from accepted norms.”
Much of what you see in Chinese behavior cannot be taken at face value, since actions
don’t necessarily reflect actual feelings. The etiquette has nothing to do with how a
person feels inside.

The Chinese do not like doing business with people they do not know, so every person
whom they must be meeting for the first time is asked to do an introduction. One must
provide as much information as possible about yourself and your company.

“Count on your Chinese counterpart to be genuinely interested in finding common

ground and in learning from you. The fact that you are a foreigner will generally
work in your favor. With few exceptions, the Chinese have a natural friendliness
toward foreigners.”
Host Organizations will be willing to help you in the arrangement of things like for
travel, hotels, or routine activities, which might not be common back in your countries.
However, Business relationships are still considered to be formal and not based on close
personal ties.

“The core concepts of classical Chinese philosophy, which have percolated down
through 2,500 or more years of essentially continuous civilization, revolve around
human relationships.”
The leader of a Chinese group, whether in China or abroad, stays above the argument. A
liaison person handles all logistical or difficult situations - matters Western group
leaders usually handle themselves. The Chinese group leader doesn’t do those things
because of the importance of mianzi - face. Face must be saved at all costs. Be aware
that the consequences of causing someone to lose face can be severe in China.

"Failing to treat someone with proper respect is a real sin among the Chinese, and it
almost always comes back to haunt you."
Business and Social Behavior

Names are very important to the Chinese, so you must know the proper way to address
someone at your first meeting. The correct address is always based on that person’s age,
and social or business situation relative to yours.

Business is facilitated through guanxi, which means connections. The core unit in China
is not the individual, but the group. The Chinese people have little privacy, but the
concept of the privacy of your own thoughts and feelings is of utmost importance to
them. Keeping your emotions to yourself is stressed as a critical goal. From earliest
childhood, the Chinese are trained to not let their facial expressions reveal how they feel.
They are taught to be expressionless. Therefore, they have a definite advantage in
negotiations.

“Intercultural communication is a two-way street, and there should always be give-

and-take on both sides. In fact, it’s a mistake when visiting China to attempt slavishly
to do as the Chinese do and forget your own cultural values in the process.”
The Chinese are trained not to question the social order or to question authority. They
value the group, and put their best on debating within a group until an agreement is
reached. The decision of the leader, however, is always the final word which the
employees accept it without questioning, respecting the hierarchy pyramid.

Surface harmony is considered to be a real thing in China and is given a great

importance. Regardless of how you truly feel, you are always expected to maintain a
polite veneer. The Chinese are not physically demonstrative in public. They often laugh
at mishaps, which is not a sign that they find it funny. This is a nervous laughter that
means they are uncomfortable. On the other hand, the Chinese are very comfortable
with silence, which most Westerners are not. Westerners have been trained to fill
silence. Also, unlike Westerners, the Chinese will always avoid saying the word "no."
Instead, they will tell you that something is "under consideration," "inconvenient," or
"still being discussed," or they will not deal with your request at all.

How Business Meetings Work

Business meetings are generally held in conference rooms rather than offices. The
Chinese don’t like surprises and will generally discuss their views and positions with
each other before they come to the meeting. The Chinese expect foreign delegation
leaders to enter a room first. Important guests are escorted to their seats, and the
principal guest is given a seat of honor. Then, others can sit wherever they choose.

“Leader-to-leader discussions are expected always to be cordial and correct; while

liaisons must handle the thorny issues, the leaders remain free to exchange
compliments and accolades.”
Chinese meetings always begin with small talk, then move slowly to the matter at hand.
The Chinese people prefer to listen rather than start up the conversation or initiate the
meeting. When they nod, that does not mean that they agree or are saying ‘yes, they
simply mean that they are listening and wants the other person to carry on with what
they were saying. The Chinese consider it impolite to interrupt a speaker or to put
anyone on the spot. You should "always offer a way out, so your counterpart can
preserve face." At the end of the meeting, you should always recap what has happened to
avoid misunderstandings and they seem it important that each other gives a formal and
proper farewell.

Women in Corporate Circles

Unlike the Japanese and the Koreans or even Pakistanis, the Chinese are fairly
comfortable with women in business settings. Foreign businesswomen receive the same
level of respect as their male counterparts. Foreign spouses are always shown the same
level of respect accorded to the rank of their husbands or wives working in the company.
They are also included in social functions, although it is uncommon for the Chinese to
bring their spouses to social functions related to business.

Home and Dining Etiquette

The Chinese will go out of their way to befriend foreign guests, usually out of sincere
interest and curiosity not because they have ulterior motives. If you are invited to a
Chinese home, your visit will usually include a meal. If you cannot accept the invitation,
explain why so that the host will not consider your refusal to be a rejection or a rebuff. If
you accept, always bring a small gift with you. Do not bring flowers, as these are
associated with funerals. Foreign cigarettes, foreign liquor or wine, a basket of tropical
fruit, or a box of foreign chocolates are always good gift choices. If you know your hosts
fairly well, you may choose to bring a gift you know they would like. The Chinese usually
won’t open a gift in front of the giver unless asked to do so. Except for tight or revealing
clothes, the Chinese do not care what you wear but this thing is also changing but still
not so widely accepted.

“The Chinese are flattered when foreigners make and attempt to learn their language,
and a phrase or two will certainly earn you high marks.”
In China, it isn’t polite to touch your food, or anyone else’s, with your hands. Food is
presented in cut-up pieces so that you will be able to eat it easily with your chopsticks.
Noisy eating is not considered impolite, so don’t be surprised if your host talks with a
mouth full of food, burps, slurps, or makes any other kinds of sounds usually frowned
upon in the West. Always leave something on your plate at the end of the meal. If you
don’t, you are implying that you are still hungry and Chinese would try to fill up your
plate each time you completely finish it. Do not drink anything alcoholic until after the
host’s toast, which can last as long as four minutes. Also, when you offer them, alcohol
put your hand under the elbow when you are pouring them their drinks. Such act is also
practiced when you are given a business card and the one should give it a read or a little
glance than responding with a “Thank You”.

Getting Things Done

China’s bureaucracy can be a nightmare. It is huge, powerful, set in stone, and very
resistant to change. The hallmark of the bureaucracy is "many checks, few balances."
Officials make decisions based on what is best for China, for their department, or for
themselves personally.

“China’s bureaucracy probably owes as much to its Confucian heritage as it does to the
Soviet Union, on whose government structure it was largely modeled. Far from the
”classless” organization of communist mythology, it is in fact strictly hierarchical, with
rank and its privileges defined extremely clearly.”
Since most subordinates have not been granted explicit authority in specific matters,
they will not make decisions on even the smallest things. They will refer you all the way
up to the top of the chain of command. Bureaucrats will not stick their necks out and
fear they will "suffer for a decision later." To get someone to say yes, look for a win-win
solution. You can:

 Appeal to a higher authority.

 Keep interactions friendly.
 Ask the right questions.
 Remain patient.
 If possible, go in through a back door.
 Try an indirect approach.
 Offer a way out.
 Show enormous respect to the point of being exceedingly deferential.

“In English you can lose face and you can save face; in Chinese however, you can also
give face.”
In all cases, you must "allow everyone to "save face." Oddly, taking risks is often a good
idea, since "it’s easier to ask forgiveness in China than it is to ask permission."

Hosting the Chinese

Taking a trip to another country in a group or delegation is a favorite Chinese method of
assessing foreign technology or business like they learned about Pakistan’s economy
when they send their delegation to Pakistan to learn about Pakistan’s economy.

Hosting a delegation carries a lot of responsibility. You will want to take their customs
into account. Every delegation has a leader who makes the major decisions. The
delegations have structures and hierarchies. Delegations always provide advance lists of
members showing delegates’ names in protocol order, beginning with the leader. Always
clarify what is expected of you as a host, including which corporation is paying for
various hotel and local travel costs.

“Chinese tend to go all out for those within their own circles, sometimes putting
themselves at great inconvenience or even in ethically questionable circumstances to
do a favor for them. But Chinese treat strangers almost as if they do not exist.”
Someone of a high rank in your company should meet the Chinese delegation at the
airport and provide their transportation. Give your Chinese guests an itinerary.
Welcome them to their hotel rooms with a basket of fresh fruit. The Chinese consider it
a personal honor to be invited to the host’s home. They expect your family to be there.
Most Chinese delegations bring gifts for their host organization. Although it is not
necessary to reciprocate, it’s always nice to do so with a memento of the visit.

“It’s form over content. One’s private feelings hardly enter the picture at all; it all boils
down to how thoroughly one honors one’s obligations.”
Only schedule media interviews if your Chinese guests have agreed in advance. Don’t
spring interviews on them, they like be prepared beforehand and doing this will earn the
party disfavor of the Chinese. You will find that the Chinese enjoy visiting foreign
countries, and that they will be eager to learn as much as they can about your culture so
one should not question them for this behavior rather answer them politely.