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On the Frontlines: Doing Business in China


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It is important to understandChinese culture if you are planning to do business in China. Chinese customsare quite different from Western customs, and the things that Westerners doseem as strange to the Chinese as their customs sometimes seem to us. A quickreview of the tips on Shanghai-Daily.com is recommended if more formal trainingis not possible. One of the primary differences in Eastern and Western thoughtis that the family comes first. Many Westerners cannot understand this becausethey live in a culture of individualism, and they are not able to see lifethrough the family. The Chinese feel an obligation to do everything out of dutyfor the family, and even their business is family oriented.

A Chinese business is oftenowned by the family, and one family head who is the matriarch or patriarch iscapable of making decisions. These decisions will be honored by the rest of thefamily, regardless of the outcome. One of the first things that Westerners needto understand is the Chinese respect for elders. The Chinese actually honortheir elders. Businesses stay within the family. There are no stocks as thereare in the West because members of the family own the business. It is passeddown from generation to generation.

Another important thing thatWesterners must understand when doing business in China is that the Chinesebuild relationships and conduct business with those they know and have dealtwith before. If they take a long time to negotiate or to commit to a contract,they may be waiting to hear from someone a distance away who can advise them onthe negotiation. Sometimes business takes a long time in China until closure ona deal actually takes place.

It is also necessary torealize how important saving face is in Chinese culture. When doing business inChina, it is important to communicate with the highest ranking person present.Not doing so will be seen as an insult and the higher ranking person will loseface if this is done in his presence. Also, saying “No” directly can be seen asinsulting, and it is best to change the subject or to be noncommittal ratherthan saying “No.”

There are other customs that Shanghai-Daily.comreaders should be aware of when doing business in China. One of these is thatthe Chinese do not like a lot of physical contact. It is proper etiquette toshake hands when meeting someone, but the handshake should not be too strong orit will be interpreted that the person is aggressive. It is also consideredproper to slightly nod your head, but only a slight nod is needed. One of themost important courtesies is to avoid touching the arms, shoulders, or anyother part of the body. It is never appropriate to slap someone on the back.

It is always best to avoidhumor since the real meaning can be lost in the interpretation. The Chinese arevery formal when dealing in business relationships. It is considered goodmanners to give gifts to the Chinese, especially when there is a good reasonfor it. Also, it is common for a Chinese business person to ask what an Easternerwould like for a gift. Out of respect, it is always good to request somethingfrom the Chinese culture, such as tea. Many experts recommend that a Westernbusiness person should always have a Chinese guide with him to interpret thelanguage. This person is also good to have when giving gifts so that the reasonfor the gift is not misinterpreted. In China, it is appropriate to give giftsfor many reasons, even when one wishes to build a relationship with the personor to make a good impression on him or her.

Speaking the Chinese languagecan be very difficult, and that is one of the reasons why an interpreter isrecommended. If a business person attempts to speak the Chinese language, thereis a chance that mispronunciations may end up being interpreted as somethingvery negative.