Taming the Dragon: Top tips for dealing with the Chinese market

TrainingZone

Taming the Dragon: Top tips for dealing with the Chinese market

By TrainingZone

China may soon overtake Germany to become the third largest economy in the world. For those wishing to take advantage of this booming economy the rewards may be great but an understanding of this very different culture is vital to achieve success, says Cathy Wellings.

China has seen massive economic development during the past quarter of a century and its economy is now the fourth largest in the world.

"Relationships are absolutely vital when doing business in China. A central concept in Chinese culture is guanxi (loosely translated as relationships or connections)."

With Gordon Brown's agreement in February to increase UK trade to China by 50% within the next two years; the Olympic Games in August and China's Sovereign Wealth Fund of $200bn earmarked for outward investment, it is clear that China is a nation of ever increasing opportunity for British business.

The western visitor to modern China will observe many outward indications of cultural differences, such as eating rituals and gift giving. But it is an understanding of its underlying values and attitudes, often underpinned by age-old traditions and many years of history, that can really help in getting to grips with its culture.

Unlike the British, who focus on task and delivery, good relationships are absolutely vital when doing business in China. A central concept in Chinese culture is guanxi (loosely translated as relationships or connections).

"Guanxi is a network of elaborate relationships promoting trust and co-operation. Establishing a sincere, supportive relationship based on mutual respect is a fundamental aspect of Chinese culture. In business, having the right guanxi is crucial."

Guanxi is a network of elaborate relationships promoting trust and co-operation. Establishing a sincere, supportive relationship based on mutual respect is a fundamental aspect of Chinese culture. In business, having the right guanxi is crucial.

The following tips will help you ensure that you maximise your opportunities for doing business in China.

Remember that good working relationships are absolutely vital in China. Long-term relationships are valued much more than hurried transactions

Show interest in Chinese history and culture. A little knowledge will go a long way

Never criticise a Chinese colleague in front of someone else or do anything else to cause them loss of face or mianzi

Always refer to your Chinese counterparts by their titles and family name, unless instructed otherwise

Chinese business people enter a meeting room in hierarchical order. You should always try to do the same

Take time to listen attentively to your Chinese counterparts and resist the temptation to interrupt or ask too many direct questions

Have your business cards printed in English on one side and Chinese on the other. Always present it with the Chinese side facing up

Try to keep negotiations calm and impersonal. Excessive displays of emotion are not respected

Avoid making political comments about Chinese national or foreign policy

Cathy Wellings is the culture and communication manager
at Communicaid. She oversees the design and delivery of more than 500 programmes in over 30 countries every year. She has lived and worked in France and Spain as well as the UK, training professionals in culture and communication skills.

For more information on Communicaid, visit the company's website

Read last months feature Living the dream: Top tips for smooth negotiations with the American market

We are running a country by country business etiquette guide, with India next on the list. If there is a country that you would like us to look at, please let me know: email [email protected]