“”Do not repeat the tactics which have gained you one victory, but let your methods be regulated by the infinite variety of circumstances.”
– Sun Tzu (544 BC – 496 BC), Chinese Military Commander and Author
Personal interaction is crucial when doing business. But what if your counterpart speaks another language, has been raised with other values, works in a business environment that is re-inventing itself and is bound by social rules that don’t apply in the West? How do you go about personal interaction in such a situation?
Well, the first and most important thing is to be aware of the differences and start embracing them.
The list you will read here – the fourth blog post from the China Series — is by far complete, but it will give you the some basic insights into doing business with a Chinese counterpart and hopefully inspire you to dig deeper in the Chinese way of doing business.
1. Understand Confucius. He was a great thinker who lived in China (551-479 BC). Even today, much of his ideas still influence the current business thinking in China. For example, the importance of hierarchy he promoted finds its way into the way negotiations should be done – between two individuals from the same level, like two sales managers with the same rank.
Take some time to find out more about Confucius. It will help you to frame some Chinese habits that might seem strange to you at first sight.
2. Practice ‘Mianzi’. It’s crucial to enhance someone’s reputation – saving face – and not to cause any harm. Chinese are much more sensitive to what other people think of them. This impacts for example crucial performance processes like coaching.
3. Build ‘Guanxi’. Or ‘connections’. Or expressed differently: ‘Who do you know and what are they willing to do for you’. It’s crucial to know that Chinese are very generous for people inside their network, not at all for those outside.
4. Less privacy. In general, privacy has not the same importance for a Chinese person. During a business dinner you can expect questions like: “How much money do you make?” or “What did your father die of?”. Don’t be offended. These questions are a way to show interest.
5. My child, a dragon. As you probably know, China has a one child policy – each couple can have only one kid, unless you pay a government service fee or the first child is a girl. When surveys polls try to find out what Chinese find important, the answer is always: pursue a better life for my children – I want my child to be a dragon.
6. Hand shake. In the West, we like a firm handshake, but Chinese people who have not been exposed to this Western habit can be offended. Aim safe and don’t overdo it unless you know for sure that your counterpart is familiar with the custom.
7. Business card basics. It’s smart to have a double sided business card with all information in Chinese on one side. Make sure the Chinese side is facing up. Always hand a card with your two hands. If you receive a business card, look at it for 2-3 second to show interest.
8. Use official names and title. Imagine you meet the mayor from Shanghai, you should address him the following way: “Good to meet you, Wang Mayor”
9. The ideal host. If you invite people to a restaurant, make sure you arrive early to greet everyone.
10. Arrive as a group. When you are invited by a potential business partner, your host would like to give proper respect to the most senior person from the party. Avoid embarrassment, for example: the CEO got hold up for 5 minutes to take an important phone call and walks in at the end of the introduction ceremony.
11. Round table. The most senior person sits to the right of the host, the second most senior to his right. And so on…
12. Gifts. Bringing a gift is a smart thing to do. Be carefull however what you take or the potential smart idea can turn against you; there are some gifts that are considered offensive, like an image of a turtle or a green hat. Handicrafts are always a safe bet.
