China Etiquette For Business Success

Came across this list on the Fili World blog on what to do to succeed in China.  Fili World is written by an Israeli computer scientist who recently spent a year in Taiwan and some time in China and now frequently blogs on China.  I like the blog because its Israeli perspective sometimes differs different than that of a U.S., British, Dutch or even French blog on China. 

This list is Fili Nation's translation from an article (in Hebrew) in Haaretz, a leading Israeli newspaper (with my minor translation changes as well):

  1. Take an interpreter to the first meeting.  Never expect to convey a technical message in English.  The Chinese person with whom you are dealing will never admit he does not understand.  A Chinese interpreter will cost between $50 to $1000. 
  2. Present your business card with both hands. You must study your Chinese colleague's business card and you should never stash it in your back pocket.
  3. Talk only to the Senior manager when negotiating.
  4. Determine who is really the decision maker.
  5. The most important part of negotiations is spending time together in a good restaurant, or at a Karaoke (KTV) Bar. Some deals will not be signed before drinking Chinese liquor together. Some Israelis have commented that it tastes awful.
  6. Chinese are not impressed with using body language. They consider it a weakness.
  7. Arriving late is considered an insult that might undermine the deal.
  8. Gifts should be given, but not in front of other members of the organization, so as not to be considered a bribe. 
  9. The Chinese refuse gifts three times, but will accept them on the fourth.
  10. Wrap gifts in red paper as it symbolizes luck and fortune.
  11. Recommended topics for conversation : The weather, domestic tourism in China, Chinese art, good experiences in China.
  12. Recommended conversation topics to avoid : Political subjects, especially China's politics regarding Tibet and Taiwan.

Fili World then goes on to say that though there is "some value" to this list, it stereotypes the Chinese and "might result in doing more harm than good."  I tend to agree.  I also note that this list tilts more towards etiquette than business advice and though etiquette is important for not squelching a deal, I find it hard to believe it ever seals one. 

As for the list itself, I agree that if you do not speak Chinese, it is essential to have good translator, but good translators can be had in China for less than $1,000 a day. 

I also agree it is a good idea to present your business card with both hands and not put someone's business card in your back pocket, but I also suggest you be sure to look closely at the card handed to you.  After looking at the card, I also usually make a gesture acknowledging the high position of the person with whom I am dealing. 

It does always make sense to try to figure out the decision maker when negotiating and to talk with that person.  This is a good idea everywhere in the world, not just China. 

"Some deals will not be signed before drinking Chinese liquor together.  Yes, and some will be.  If the list is talking about Baijiu, it is not just the Israelis who think it tasts awful.  I compare its taste to what I imagine gasoline filled mud puddles taste like.  I actually think the banquet/dinner is at least as important. 

I do not know what this list is talking about in terms of body language.

It is not a good idea to arrive late in China; it is generally not a good idea to arrive late anywhere.

It is important to understand gift giving in China and this rendition is too simplistic.  At some point, I will do a post on Chinese gift giving etiquette, which can be hugely complicated.

It probably is not a good idea to talk about Taiwan or Tibet.  However, the views of the Chinese are hardly monolithic.

For more on Chinese etiquette, I suggest  you check out the following:

1.   Chinese American Etiquette Association. A San Francisco based non-profit organization whose "mission is to explore the differences in manners and customs between Chinese and American cultures in today�s technological enviroment."  Its philosophy is as follows:

The old saying: �When in Rome, do as the Romans� is not sufficient for bridging the communication gap and cultural differences between China and the US. The world operates in the climate of globalization with a constant need for cross-cultural communication. CAEA explores how interractions occur during a process of cultural adaptation between these two countries and cultures.

"I think one needs to understand the culture in the country you are in but still stay true to your own values and beliefs. You do need to understand the things "not to do" so that you won't offend others but then stay true to your own beliefs."

"Etiquette is a strong indicator of character and background."

2.   Vblog -- Protocol and Etiquette in Between China and the US. This blog describes itself as exploring "the manners and customs which distinguish the two cultures and the protocol and etiquette necessary to thrive in either world. This blog explores how interractions occur during a process of cultural adaptation between these two countries and cultures.

3.   The New China Etiquette.

4.   A taste for Good Life. This Blog, written by Helen Wang, oftentimes posts with Chinese cultural issues.  It describes itself as a "lifestyle blog with a focus on arts, cultures, theaters, fashion, travel, and holistic living - things that augment the beauty of life."

5.   Intercultural Learning Blog.  Frequently posts on Chinese cultural issues.

Comments (13)

Read through and enter the discussion by using the form at the end
Helen Wang - October 9, 2006 5:36 PM

Thanks for mentioning my blog A Taste for Good Life. Please also check out Across the Pacific - it has a focus on entrepreneurship across the Pacific.

BTW, I read James McGregor's book and it's indeed very good.

David A Carnes - October 9, 2006 8:36 PM

A couple of notes about Chinese drinking etiquette from personal experience:

1. Early on you may be asked whether you can hold your alcohol. Don't say yes unless you mean it and are planning on proving it immediately. The Chinese seem to think that Westerners are SO cute when they're drunk...

2. Watch out for the old "get you drunk and then have you sign a contract" trick.

China Law Blog - October 10, 2006 12:29 AM

Ms. Wang --

Thanks for checking in. I have always enjoyed your Across the Pacific blog also and I would love to see you post on it more often.

China Law Blog - October 10, 2006 12:33 AM

Mr. Carnes --

Thanks for checking in. Good advice regarding the "old'get you drunk and then sign a contract' trick." Are you personally aware of that ever actually having happened in China? I am aware of one instance of that and that was actually in Alaska.

Having been involved with Korea and Russia for over 15 years, I know every single trick in the book to appear to have consumed a huge amount while actually having had almost none. I am looking into patenting some of my tricks.

R. King - October 11, 2006 10:44 AM

Thanks for the linking, and I really enjoyed reading the entries of your blogs.

David Li - October 11, 2006 5:12 PM

I have seen the wear out the negotiating team strategy using combination of long meeting during the day, big dinner followed by drinking in KTV, and girls in the hotel room and meeting at 7AM next morning. Works especially well for American negotiators who like to play tough guys driving tough bargain.

China Law Blog - October 11, 2006 6:15 PM

R King --

Thanks for checking in and thanks for the thanks. I linked to your blog because it is interesting and good, i.e., no thanks necessary.

China Law Blog - October 11, 2006 6:18 PM

Mr. Li --

Thanks for checking in.

The thing I learned a long time ago is to always decline the airport pick-up and drop-off. Westerners tend to love that because it makes them feel important and they usually think it is a sign of friendship and closeness. I view it as an attempt to monitor my every movement and prevent me from talking with people with whom my "attempted minders" do not want me talking. I haven't accepted such a ride for probably ten years. Gives me an idea for another post, entitled, Refuse the Ride and Do The Deal, or something like that.

As for the women, I have a client who, whenever possible, sends a woman from his company to China for this very reason. No kidding.

David Li - October 11, 2006 7:00 PM

Speaking of airport pickup reminds me a good article about Dan Mintz's story. I think it's a good read for the subject matter.

http://www.fastcompany.com/magazine/104/open_mintz.html

China Law Blog - October 11, 2006 8:00 PM

Mr. Li --

Thanks for checking back in and for recommending that Fast Company article. I actually talked about it in this post:

I pulled this quote from the article, because I loved it: "Why would you think people in government here all think the same when there's nowhere else in the world where that's the case?" Mintz asks. "It's like thinking every Chinese guy knows kung fu."

I do not remember the airport pickup part so I will go back and read it again.

Muskie - October 13, 2006 3:26 PM

I think meals are really important in China and elsewhere in Asia. The hosting and paying for a meal showing they have a certain amount of status and wealth.

I know how hard it is to refuse Baiju. The worst is when it is the only liquid supplied at all with a meal. If you can only toast with beer you will be fine, but if you find a particularly determined Baijiu toaster it gets painful really quick.

One thing I did during a big Chinese New Year diner was change tables to one that drank less. It is common to move tables and toast at other tables so I just stayed at one to get away from the guy from Lenovo that always wanted to do another toast with Baijiu.

Sometimes it seems to me that the beer is negotiated to flow for a particular period of time and then it ceases flowing, where as at this diner every table got an entire bottle of Baijiu and though the table seated twelve it seemed to me just the two of us were drinking.

Women can get out of toasting easier than a guy can. You will make friends if you toast often, just try to ensure it is little glasses of beer rather than several ounces of Baijiu you have in your glass at the time.

China Law Blog - October 13, 2006 8:41 PM

Muskie --

Good tips. Here's one more. Always go to dinner with an American from your company who drinks Baiju. The Baiju drinking American will (certainly as the night wears on) end up talking with the Baiju drinking Chinese, leaving you to hob-nob with the beer drinkers. I tell you this works every time.

M. de B. - April 27, 2007 12:57 PM

Excellent tips! Just what we are looking for at http://www.chinasuccessstories.com/ if you find more of these lists feel free to let him/her know we'd be happy to help spread the word! Regards, Michael

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