Chinese Business Practices & Etiquette

Background and Culture

Chinese traditions and customs have a great deal of influence on the business practices and cultures in China. When doing business in China, these influences can be seen in the directive management style, aversion to conflict, maintenance of composure and the importance of face. The importance of face is crucial to understanding Chinese culture. It is based upon honor and good reputation and is the basis for a companys or persons reputation and social standing. Causing someone to lose face through embarrassment or insult, even unintentionally, can be devastating for any business relationship.

Be careful at all times to show the proper amount of respect and always bear in mind a persons status in an organization.

Greetings
Avoid using physical contact, For business purposes it is When doing business, other than a handshake, appropriate to address a shaking hands is the when greeting a new contact Chinese person by their accepted greeting (i.e. kissing, patting or First slight should business nod ornames bow title and surname putting your arm around A not be used unless (i.e. is also a widely President Li) someones shoulders) invited to do In China the surname used greeting so If a person does not have a comes before the first business title, use their name (i.e. for Li Hui, Li is family name only (i.e. Mr Li) the surname, Hui is the first name)

Business Cards
One side of business cards should be translated into Chinese (simplified Chinese characters) Once received, examine the business card, read it and acknowledge name and title before placing it in your card case Present the business cards using two hands (as a sign of respect), with the

Business cards are exchanged after the initial introduction

Chinese side facing out

Avoid writing on someones card unless told to do so

Business Meetings
Very formal and must be scheduled in advance The busiest time in China is usually December and January, Chinese New Year (January or February) and National day holidays (beginning of October). Try to avoid these days when scheduling appointments Once the meeting has been set, send the company some information and literature about your company Arriving late is very insulting. Meetings will begin with small talk. Keep the conversation positive when speaking about any experiences in China and avoid politics

Business Meetings
Seating will be in descending order of rank with senior people sitting opposite each other When speaking, address the most senior representative from the Chinese company Be prepared for the Chinese to talk about all of the issues at once; not in order as people in the West might do Never assume comprehension. Cover the same ground several times and constantly check for understanding

The Chinese are nonconfrontational and will not say no directly, an answer other than yes could mean no If you are planning to discuss legal or very technical topics, bringing an interpreter is highly recommended

Building Business Relationships

prefer to do business only with people they know may take a considerable amount of time maintain professionalism and formality at all times be wary of making jokes ensure you are meeting with the most appropriate person for your needs make as many of your own connections as possible; avoid depending completely on another persons contacts maintain frequent contacts; the Chinese feel obligated to do business with their friends first company has to maintain the relationship if it wants to continue to do business with the Chinese involves exchanging of gifts and favors; always reciprocate gifts and favors as appropriate

Negotiations
The Chinese are renowned for being tough negotiators When negotiating you must show compromise so their negotiators feel they have gained concessions Be prepared and make sure you have done a great deal of research prior to meeting Only senior members of the group should speak during negotiations

Speak in short, simple, sentences and avoid jargon and slang

Never show discomfort or impatience and avoid using highpressure tactics

Decisions may take a long time.

Avoid mentioning deadlines, be patient, show little emotion and calmly accept that delays will occur

Decision Making
Decision making is vastly different in western and Chinese business cultures In the West it is seen as positive if you can gather and process information quickly for rapid decision making The Chinese prefer instead to deliberate, even on decisions that may seem simple, which can cause decisions to take a long time It is unlikely you will convert a prospect at the first meeting Ask for feedback, discuss the issue and explain your thinking to avoid looking as though you have made a snap decision

Being included in the decision making process is important to the Chinese culture

Be aware of all favors done for you and prepare to respond in kind.

Do establish a trusting personal relationship that demonstrates your respect.

Business relationships are often set up on personal relationships in China.

Have a connection in China, getting help from local friend, business partner or commercial service agency specialized for foreigners.

Due diligence survey on your potential resellers in China is required to evaluate his real credit situation and capacity.

Be as informed as possible about current social, economic, and political aspects of China, especially for local market information.

Don't insult or openly criticize someone in front of others; it is very important for Chinese people to "maintaining face". Don't poke fun at someone, even if in fun. Don't stare at your counterpart; it may make Chinese uncomfortable. Don't show up to a business meeting late if you're hoping to make a positive impression. Don't give a Chinese a green hat as a gift, which is extremely embarrassing. In China, when a man wears green, it indicates his wife has been unfaithful. And don't give the older people a clock; that is not auspicious as a signal of non long life.

Chinese Cultural Practices

Yin and Yang(means shadow and light represents the ancient Chinese understanding of how things work) philosophy and traditional values. High context culture often derive from relationships , authority. Reserved , collectivistic but also individualistic and expressive depending on the circumstances Personalized loyalty : loyalty to a particular individual

 Guanxi : personal networking , using extended family and other developed relationships and connections to gain cooperation and to get things done Attitude to time : both long term and short term orientation depending on situation Ji : a carefully devised scheme with which to cope with difficult situations and gain psychological and material advantages over the opponents

 Confucian values :
Moral cultivation, importance of interpersonal relationships , family orientations , respect for age and hierarchy , need for harmony and concept of face Li shang wang lai : Confucian attitude towards interpersonal relationships , courtesy demands reciprocity

JAPAN

INTRODUCTION
General Information Preparation for Business Dealings Business Meetings Communication Business Entertaining

GEOGRAPHY
Thousands of islands; four largest islands:
Honshu, Hokkaido, Kyushu and Shikoku

Bordered by the Sea of Japan, East China Sea, and the Pacific Ocean Smaller than California: 378,000 sq km Population of Japan: 125,000,000

CLIMATE
Varying climate: Temperate to sub-tropic Four seasons
The summer is hot and humid Winters are mild Spring is Rainy Fall brings Typhoons

ECONOMY
Worlds 3rd largest economy Some of the worlds largest industries
Motor vehicles and electronic equipment

GDP = $3.55 trillion

Economy grew 0.8 percent in the last quarter Problems faced: Deflation, record unemployment, bad loans

CURRENCY
Japanese currency: YEN $1 ~ 130 YEN

RELIGION
Buddhism Shintoism Confucianism Christianity Islam

DINING
Chopsticks

Family-style food
Pouring drinks Rice

Itadakimasu
Table Manners Paying

Japanese are dependent on sea for food, fish is a main part of their diet Dependent on is sea Sushi raw fish rolled into rice thea for food. Fish is a favourite main part of their Nori seaweed which has been diet. Sushi raw fish rolled dried and beaten into sheets is eaten in rice is a favorite. with rice Nori seaweed which Rice is eaten at almost every dried and has been meal pressed into flat Many foods are served in a single sheets and is eaten dish which all the family members with rice. share Rice is eaten at Traditional dishes arealmost every meal. served on lacquered plates called Bentos

TRADITIONAL CLOTHING
Kimono worn by all classes, men and women Materials and colors showed the class Silk was reserved for the upper class Others wore hemp, ramie, cotton and other common fabrics

 A hundreds

of years old tradition

Focus on serenity, respect and beauty

Hosts invites guests to the tea room to admire a few decorations Then the host prepares the tea and serves it with a few snacks The guests enjoy the tea and the tranquility

City houses are typically 980 sq ft Rural homes are 1800 sq ft Most homes do not have much of furniture and rooms are often used for several purposes Japanese sleep on futons, many can be put up during the day

Floors are covered by Tatami or straw mats

An alcove called a tokonoma is used to display floral arrangements and scroll paintings. It may contain a shinto or a Buddhist shrine

TOILETS
Different from those in the U.S
Familiarize yourselves with using them

When visiting homes, wear toilet slippers provided

AS A GUEST
Be on time!!!

When entering a home

If you brought omiyage (which you did!), present it to the host / hostess Spirits in the States, flowers in France, junk food in Japan (sweets, dessert or snacks!) Giri / Ki o tsukau Japanese hosts will go OUT OF THEIR WAY to be gracious, so dont push it with special requests Sitting

MAKING A TOAST
Say Kampai, meaning Cheers
Host sips first

PUBLIC BEHAVIOR
Be polite always Always bow [ojigi (oh-jee-ghee)] Smile to mask displeasure

Direct eye-contact now common

CLOSING
Bowing is extremely important Show respect and humility always Saving Face is a very important concept

PREPARATION FOR BUSINESS DEALINGS

GENERAL CONCEPTS
The group is more important than the individual

Avoid confrontations/ direct questions

Status
Strong sense of hierarchy, rank or position

BUSINESS ATTIRE
Dress Code: Business Professional Dress Conservatively Women: Wear jewellery, makeup and perfume sparingly

BUSINESS ATTIRE (CONT.)

Take off shoes in temples and houses
Slip-on shoes and good supply of clean socks

Wearing a Yukata (robe) in traditional inns (ryokans)

Wrap left over right

BUSINESS CARDS (MEISHI)

Present and receive meishi with both hands Print Japanese on one side Study the business card Include important information

WOMEN IN BUSINESS
Inform them of your status as early as possible Demonstrate skills and professional competence Maintain a restrained, dignified manner Learn about Japanese culture

APPOINTMENTS
Punctuality Call personally Scheduling appointments: Avoid New Year, Dec. 28 to Jan. 3 Golden Week, April 29 to May 5 O-bon, mid-August Office hours: 9:00 a.m. to 5:00 or 5:30 p.m.

GIFT GIVING
Important Japanese business protocol The ritual of gift-giving is more important than the gift itself Present gifts with both hands privately Different gifts for unequal ranks Before accepting, refuse modestly

GOOD AND BAD GIFTS

Good Gourmet foodstuffs, fresh fruit Electronic toys Cuff links Something that reflects the interests and tastes of the recipient A simple commemorative photograph Bad White flowers of any kind. Giving four or nine of anything. Red Christmas cards

BUSINESS MEETINGS

 Standing/ sitting in order of seniority

Face equally ranked counterpart Exchange Meishi Visiting side gets good side of room
Side facing window

BUSINESS SEATING ORDER

BUSINESS DEALINGS
Refrain discussing business for first 15 minutes
Start after Jitsu wa ne meaning the fact of the matter is

Address the most senior member first Avoid

accusations/ direct refusals

Atmosphere of grave seriousness

Avoid Western jokes Light humor OK during breaks

BUSINESS DEALINGS (CONT.)

Saving Face Hide moods, anger etc. Every word said is taken literally
For ex: This is killing me or This is the bomb Remember: Convening among themselves, the Japanese will go over your proposal in painstaking detail.

DECISIONS AND CONTRACTS

Group decision-making Do not push for an answer Wait for consensus Oral agreements preferred Re-negotiable

CONVERSATIONS
Hello = konnichiwa Good evening = konbanwa Direct remarks to senior member

Frequently say Im sorry (Go Men Na Sa I)

Avoid complex jokes/ sarcasm

NAMES & TITLES

Name order: Last name First name Attach an appropriate title to the last name San: the most neutral and famous title

Sama: more polite form of san

Do not add a title to your own name

BOWS AND GESTURES

Most important part of Japanese etiquette
Shows respect, humility Bow in addition to shaking hands

Bow lower to someone of higher status

Also, if uncertain

Avoid unusual facial expressions

Ex: Winking, shrugging shoulders

BUSINESS ENTERTAINING

DINING OUT
Always be punctual Be prepared to sit at very low traditional tables Taking a Japanese businessperson to lunch/dinner
Select restaurant of your own culture Itadakimasu

DINING OUT (CONT.)

Proper usage of chopsticks Drink responsibly Paying:
Host always pays Bring your bill to the cashier Pay right after ordering or at vending machine Tipping not necessary