Doing Business in China

The following are some rules that Western business people should follow when doing business in China. These rules have been drafted by experts in Chinese culture from both the academic and business worlds.

1. Bring an interpreter to your first meeting. Don’t expect to convey your message in English to a Chinese person. He/she will never admit to not understanding what you said. Expect to pay in range of $50 to $100 an hour for a Chinese interpreter.

2. When exchanging business cards, present yours with both hands. When accepting your Chinese associate’s business card, scrutinize it carefully. It is considered an affront to just shove it in your pocket.

3. In negotiations, only address the senior member of the team. Addressing junior members may embarrass the entire team.

4. Determine who has the true decision making power. Many Chinese executives tend to pass decision making between each other, in the fear of taking a decision which is doomed for failure.

5. An important part of a negotiation takes place in a restaurant or a Karaoke club. Chinese liqueur is often served at the culmination of a successful negotiation; some people have reported this to be rather foul tasting stuff.

6. Avoid hand gestures and exaggerated facial expression in conversation. Chinese regard this as a weakness.

7. Be punctual. Chinese can get insulted when one is tardy for a meeting.