China - Chinese Business Culture

China is the heart of far eastern Asia, and Europe is the historical heart of the Western world. Two different continents, both with long and distinguished history. Over time, each has developed its own unique society and culture, where people communicate, interact and coexist in different ways, to different rules. It is this very social and cultural difference then that must not be overlooked, when one intends to do business in the other land.

Below we have tried to compile for you some facts and anecdotes, ideas to keep in mind when considering doing business in a foreign business culture.

Chinese culture and society:

Harmony
The Chinese have a high value placed on harmony, in both business and personal relationships. One acts with caution in most cases. To not speak one’s mind if it could badly affect harmony.

Group over individual
Individualism is not highly development in China, where collectivism and communal oriented thinking has been the norm for centuries. The call is for interdependence instead of independence.

Hierarchical society
A highly hierarchial society, with a culture that stresses the respect of those socially above oneself, from elder to superiors. Loyalty and obedience are important. Questioning authority can be seen as disrespectful extremely impolite.

“Guanxi”: relationships
A very high value is placed on “guanxi” or relationships, which are of utmost importance in almost every aspect of Chinese society. It can be created through careful courtesies from each side, however is delicate and the wide reaching duties can be misunderstood by foreign firms. Guanxi at a personal level, through establishing relationships with the individuals is the only way to get things done.Contracts are seen as formalities, and a relationship between the two sides can easily override contractual details.

“Mianzi”: face
Likened very much to respect in the western sense, but face to a Chinese person holds more importance and encompasses a greater part of life. Having and giving face are of utmost importance to the Chinese. In order to establish all important interpersonal relationships, face must always be created and maintained at all times.

Ways to give another person face:

• by giving lavish compliments to a superior
• by always using the best possible title of address
• by giving extravagant gifts, both in personal and professional relationships
• by being personally near, giving attention and also invitations to meals together
• through helping another in any way

Ways to lose face:

• by not visibly acknowledging another’s (high) position
• by being too direct, especially in cases of saying “no” to another’s request
• by openly criticising another
• by being boastful and proud (what might seem to be simple self confidence or assurance can in Chinese society be interpreted as open acts of arrogance)

• Greetings are very formal.
  At a business or social meeting, meet your colleagues with a firm but brief handshake. Make sure to shake hands with everyone when arriving or leaving. The best is to greet women first, then follow the hierarchy downwards.
• It is considered impolite to shake hands with someone while one hand is in your pocket.
• If you are in a situation where you are approaching a group of people, you should always extend your hand and introduce yourself first.
• Hugging and kissing on both cheeks is only customary among good friends and family members.
• When someone comes to meet with you in an office setting, the proper action is to stand up and walk out from behind your desk to greet the person. This shows that you have respect for the person you are meeting with.

• In Europe it is common for people to exchange business cards, so make sure you carry enough business cards with you.
• Make sure your business cards include full detail of your background, qualifications and titles as well as contact details.
• But business cards are not as important as in Asian cultures; they are usually used in a more functional way, (e.g. to see the name spelled and to have the contact details)

Business Negotiation

• Decision-making is often a slow and detailed process. There is a heavy emphasis on careful planning, consideration, consultation and consensus. This has developed an appreciation for detail, facts and statistics.

• Once a decision is made, it is very rarely being changed. Final decisions are translated into strict comprehensive action steps that you can expect will be carried out to the letter. Contracts as strictly followed.

Dress Etiquette

• Business dress is understated, formal and conservative.
• Men should wear dark coloured, conservative business suits with a tie.
• Women should wear either business suits or conservative dresses.
• Women should also avoid wearing ostentatious jewellery or accessories.