When your business grows to the point that you have the opportunity to expand into the overseas market or even if you hold a position in a company that involves business negotiation, it can be a very exciting time, especially if you get the chance to do business in China. In either situation, most people get all wide eyed at the idea of the profits that can be made but if you aren’t careful you can throw all of it away with one wrong move. You may thing you can answer the question “what is business etiquette” but when it comes to the business culture of China, there are a lot of unique rules that come into play.
The business culture of China is much more structured than in the west and adhering to their rules is of the utmost importance when entering into that market. In the United States, business etiquette doesn’t get discussed as much because most of the business negotiations styles are standard. We wear suits, exchange business cards, prepare, present and end with a hearty handshake. What is business etiquette in the U.S. involves guidelines but they’re very different in China and are based on nurturing the relationship, respect and cultural considerations. You’ll need to bow your head when you are introduced and be ready with a business card and your business cards must not be bent or worn in anyway. You’ll have to wait to be properly seated at meetings and make sure to speak clearly and not jump to conclusions or interrupt anyone. Showing respect is one of the most important factors that come into play when it comes to the business culture of China.
Chinese negotiation style is also unique and can take years to master, but there are some things you’ll want to keep in mind that will help, even if it is your first time at the table. First of all, bring plenty of business cards with you. You’ll be exchanging them a lot and you need to make sure yours are in perfect condition and have your information printed on the back in Chinese as well. Don’t flick the card at anyone either, hand it to them directly and when you receive one lay it out on the table after examining it, and make sure not to put it away until negotiations are finished. Secondly, learn the art of Guanxi which is very important when it comes to the Chinese negotiation style as well and this means you’ll need to have a hookup. You’ll need to have someone along with you that the group you’re negotiating with knows and trusts. Social status is very important in China, and other countries as well, so make sure that your group isn’t just made up of rookies; have someone there both groups can trust.
Chinese negotiation style is also built around a certain level of distrust, at least in the beginning. You’ll need to make sure that you have someone there who is Chinese to make the negotiations more comfortable. When you speak directly to whomever you are meeting with, use short and quick sentences that are to the point. This will help make you appear professional, legitimate and even save face when it comes to your business approach.
Americans and most of the west put their money on innovation and talent but in China loyalty, honor and respect are the most important aspects of any business partnership. Once you’ve met these aspects, the business relationship and profits will follow. Make sure to adhere to their structured Chinese negotiation style so that you can flourish in the foreign market. By understanding the business culture of China you’ll be much more likely to succeed.