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My England Travel Guide |
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Useful Tips about China
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. Tip 1: The Importance of 'GUANXI' . Tip 2: Formality, Hierarchy, Status and Respect . Tip 3: Non-verbal Communication . Tip 4: Business Protocol . Tip 5: Tailoring your Presentation . Tip 6: Negotiating Tactics Tip 1 THE IMPORTANCE OF `GUANXI' A major key to doing business in relationship-focused markets such as China and Taiwan is guanxi - personal connections or relationships Having the right local contacts is crucial It's a question of who you know Making a 'cold' approach to potential customers is unlikely to work because companies in these markets do not do business with strangers Foreigners who do not yet have local contacts can join official trade missions or attend trade shows to meet interested parties They can also use someone else's connections, which is called "pulling guanxi " For instance, you could arrange to be introduced to a prospective customer or partner by your embassy's commercial section, your bank, freight forwarder or a business associate already doing business in Greater China In contrast, Hong Kongers tend to be more deal-focused, more open to doing business with strangers So having obtained addresses of prospects through an organization such as the Hong Kong Development Council you can proceed to make direct contact Likewise, Singapore has evolved over the last thirty years from a strongly relationship-focused market to a more deal-focused one Another key feature of relationship-oriented cultures is the need to build trust before trying to talk business Visitors to Beijing and Taipei should always wait for the local party to initiate the switch from general conversation to the business at hand Again, the more deal-focused business people of Hong Kong usually get down to business with fewer preliminaries Tip 2 FORMALITY, HIERARCHY, STATUS AND RESPECT Due to the Confucian tradition, all four cultures of Greater China are strongly hierarchical Western visitors should maintain a certain level of formality and know how to show respect to high-status persons For example, greet the oldest person in a group first and refer to your counterpart by his or her family name rather than by the given name Here we need to remember that with Chinese names the surname comes first, followed usually by two given names Mr Li Er San should be addressed as Mr Li, for instance Do be aware of possible confusion with name-order Some Chinese put their family name last on the English side of their business card When in doubt, ask the person politely which is his or her surname Chinese business associates who have adopted a Christian given name may suggest moving to a first name basis after some time, but it is wise to wait for them to take this step Tip 3 NONVERBAL COMMUNICATION The people of Greater China are more restrained than expressive in their communication style - though the Cantonese are thought to speak rather more loudly than other Chinese Visiting negotiators should take care not to interrupt the other party during discussions Chinese avoid touching people they do not know well, so physical contact other than a gentle handshake is not advisable Maintain moderate eye contact across the bargaining table Too strong a gaze makes some Chinese uncomfortable -- they may think you are "looking fierce" in order to challenge or intimidate them Tip 4 BUSINESS PROTOCOL Meeting protocol tends to be more formal in China and with older Taiwanese than in Hong Kong In Shanghai or Taipei, when introduced say "ni hao" and then offer your card, holding it in both hands between thumb and forefinger, giving a slight bow at this point You should also accept the other party's card with both hands Take plenty of name cards with you to the markets of Greater China You will often meet with groups, and to be polite you must exchange cards with each person The dress code for businessmen in China, Hong Kong and Taiwan is a dark suit, white shirt and tie For women it is a conservative dress or suit During meetings it is vital to maintain surface harmony even when emotions run high Open displays of impatience, irritation or anger are regarded as infantile and offensive Chinese lose respect for people who cannot control their emotions, so therefore you lose face And since your show of negative emotion also causes the Chinese party to lose face, the negotiation quickly degenerates into a lose-lose situation Tip 5 TAILORING YOUR PRESENTATION Here are a few tips for adapting your presentation for best results: Use plenty of visual aids and handouts, especially where numbers are involved Emphasize facts and documentation rather than eloquence of delivery If using an interpreter, brief him or her before the presentation and pause after every two or three sentences to allow for translation In China and Taiwan avoid starting with a joke or humorous anecdote Excessive informality is out of place in a formal presentation Avoid over-praising your own company or product -- a sign of arrogance Instead, hand out testimonials or favorable articles: third-party praise is fine Similarly, take care not to poor-mouth your competitors A better tactic is to distribute copies of a report from a technical journal which is critical of your competitor's product Summarize frequently and explain complex concepts in two or three different ways Tip 6 NEGOTIATING TACTICS The Chinese are known for certain favorite negotiating ploys For example, when they start calling you a 'friend of China' they may be softening you up for another concession on price or terms Don't be surprised to hear, "As a friend of China you will of course understand that we need a lower price " Another tactic is to casually mention that representatives from one of your competitors will be calling on them next week Negotiators have even found themselves in the reception area sitting across from visitors for a rival firm, both waiting to see the same Chinese counterparts Remember that negotiations take a long time in China, particularly with public sector companies In Taiwan and Hong Kong the process speeds up a bit Return to: China Homepage
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on this page is from my Stay in England UK from 2002 till 2008.