Etiquette: eight pieces of advice for doing business in China

The encounter reminded me that not all foreigners are well-versed in how to conduct themselves when doing business in China. And it’s not just our Western business friends making mistakes – many people from Asian nations don’t fully appreciate the values and traditions that drive the Chinese people and their opinions of overseas businesspeople. 

This is why I have compiled a list of key advice and etiquette points – things to ensure you do when meeting Chinese business associates.

Be patient – The relationship always comes first and business second. Many Western companies try to exert pressure too soon, missing out on valuable business opportunities.

Think Chinese – Understanding the guiding values of Chinese culture is essential if you’re to understand business culture and the reasons behind many decisions. Chinese place a high value on hard work, loyalty, perseverance, teamwork and respect for authority.

Understand that China is no longer ‘cheap’ – Gone are the days of cheap local labour and materials. Don’t push too hard on price, and maintain some width in your budget for unforeseen costs. 

Learn some of the language – Even if you aren’t able to become fluent, it is respectful to learn a few simple words and phrases. An understanding of language yields an understanding of culture. An understanding of culture yields business respect and success. 

Value and empower your local staff – To succeed in China you need a strong local management team proud to represent you and your company. Make sure you show they are a valuable part of the company with bonuses and positive feedback. 

Ask for help – Recognise that you don’t know anything, and getting help from important figures can open many new doors for you. Be prepared to reciprocate the favour in the future. 

Dress to the occasion – In my experience, local business people and government officials normally do not dress up for normal business meetings, however very senior officials in top tier cities such as Beijing and Shanghai will wear a smart suit and tie for major official functions. While you may not need to wear a suit and necktie (for men) or formal business dress-suit (for women), every time you plan to meet with your Chinese counterpart, ask your local contact, or your counterpart’s staff to advise on the most appropriate dress – you don’t want to intimidate or embarrass your counterpart by being overly dressed. As a general rule, an open-neck shirt and pants (for men) or simple dress or dress-suit and blouse (for women) is most often appropriate for business meetings.  

Understanding Chinese business etiquette is essential for anyone looking for strong business growth in Chinese markets – even if you are comfortable in the Chinese business environment, you should ensure your associates and business partners are just as well-versed with a range of tips such as these. 

And for the record, you should always address business colleagues by their title and last name – such as Mr Wu, or Doctor Wang.

 

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