It is well-known that the Chinese market is spreading all over the world - slowly, yet consistently. If you look carefully at the label of your shirt, it would most probably say "Made in China". Who would have thought that the three little words would turn the whole business world over?
Due to China's belonging to the Eastern culture, business practices and relationships with the country are very different from those in the West. Let us throw some light upon the rules and traditions of Chinese negotiations.
First of all, the Chinese prefer to establish the relationship first and foremost, and, if a trusting personal relationship sets in, business transactions may follow. The advice here is to search for common ground between the partners. It could be anything: from the mutual University to the shared hobbies and interests. Another point to be kept in mind is that the Chinese will ask questions that might seem impertinent and inappropriate to most westerners. The best solution is to politely answer the questions rather than take offense or try to inject humour into the situation.
Secondly, greetings play an important role in the Chinese social life - they can make you seem respectful or totally tactless. A light handshake is the standard greeting at business meetings. First greet the most senior person and remain standing for the introductions. It is common for the Chinese to slightly lower their eyes as a sign of respect.
Thirdly, the Easterners find the concept of "face" very important, that is to say, you should respect the Chinese desire to gain and maintain face during negotiations. In the office, make sure you do not ask anyone to do a task that they may consider beneath them, otherwise, a working relationship may be ruined.
Meetings, as a rule, are dictated by the most senior person present. Be prepared that the negotiations will be conducted in Chinese. In case you do not master it, this can be off-putting, because the length of the translations is vastly different from the length of the Chinese. Taking short notes, while the Chinese partners take their time to consider the points, might be helpful.
Finally, the Chinese are known for their collectivist attitude, thus they accept gifts with a reserved demeanour. In order not to appear greedy, a gift will not be immediately taken, but refused three times before being accepted. Each time it is refused, you as the giver should graciously continue to offer the gift. And once it is taken, tell the person you are happy it is been accepted. The gift is offered using both hands and must be gift-wrapped; though it will not be opened it front of you. It will be set aside and opened later. This tradition eliminates any concern that the recipient's face might show any disappointment with the gift. If you are presented a gift, follow the same process of refusing it three times then accept it with both hands. You will also not be supposed to open it, but to wait until later.
The mentioned cultural tips for business practices, business etiquette and protocol demonstrate the number of areas where business people can face challenges. Cross cultural understanding is an important tool for any international business person, company or organisation to acquire when doing business abroad. Looking forward, doing business in China will gain more importance as its potential continues to grow.
