In the first category "Things to Know", we discuss etiquette and cultural practices that influence all facets of daily life in China. While they might not be specific to business practices, they are nonetheless very important to to successfully conducting business in China, both in and away from the boardroom. For this reason we suggest you familiarize yourself with what the explanations in the "Things to Know" category as well.

Expression Influencing Etiquette

Guanxi (gwahn-she) - Connections or influence a person has: Crucial in doing business in China and normally one of the first principles a Westerner learns. People will use their "guanxi" with others to ask for assistance or use their social standing or professsonal status to get something done for someone else. A relationship of mutual benefit and reciprocity. Does not only apply to business, but all inter-personal relationships in families, between friends and professions.

Hui boa (bah-oh) - Give back, to respond: To repay a favour or 'guanxi" from someone else is one of the most important ways a person can keep face. To not repay social debts is considered uncultured and extremely dishonourable.

Shehui dengji (social status): showing respect for a persons social status. Not doing so shows a lack of...

Unlike in the West where business is less personal, in China personal feelings about the personalities involved in the deal play a big role in the final decision. Your success is balanced on how much your Chinese peers trust and respect you.

From the first meeting you are being "summed up"; your frienship, personality, warmth and attitudes towards your Chinese business peers and China is being measured. It can be a quick process or one that stretches over weeks or months. Traditionally, the Chinese do not do business with people they do not like (this is changing with the increase in international trade).

Never lose your temper in public! The associated ranting and raving will lose you face, or worse, cost someones else their face - keep calm!  (a detailed explanation of face and its consequences can be found in the first category "Things to Know")

Using aggressive ultimatums can have an opposite result to what you expect; they might be perceived as pressure tactics and intentionally ignored. Rather set deadlines well in advance. Give your Chinese counterparts time and deadlines will be received more favourably.

Avoid making appointments or doing business in China during these festivals:

• Chinese New Year (Spring Festival): Falls between January and February on the Western calendar and lasts up to a week. It's the most important festival in China. Most factories, business and government offices either close or are staffed to a minimum. No business can be conducted during this festival.
• National Day: October 1, celebrates the founding of the People's Republic of China on October 1, 1949.
• Worker's Day: May 1, celebrates the contribution of the worker.
• Ghost Month: Occurs between July and September annually. Similiar to All Souls' Day. It's a time when the gates of hell are opened allowing ghosts and spitits to roam earth. It's believed ghosts are jealous of success and will jinx a business deal.

Men should dress formally and conservatively. Wear a suit and tie with no bright colours. For business related formal events a conservative suit and tie is also appropriate.

Likewise, woman should adhere to conservative attire for business meetings. Revealing clothings is disrespectful, so low necklines, short skirts (above the knee), naked shoulders as well as high heels are not recommended. Do not wear too much flashy jewelry either. It will be seen as being pretentious.

Do not be late for a business meeting! It is considered a serious insult.

Protocol dictates that the most senior company executive should enter the room first. This way, your Chinese counterparts will know who is the team leader - who makes the final decisions.

This senior member should open all meetings and lead the important ones. Junior members of a company's delegation can conduct presentations or discussion points. However, once complete, should always hand the meeting back to the senior executive.

To avoid any surprises or disruptions, the Chinese will try to control the meeting. Seating arrangements, points of discussion, time will all be arranged to ensure proceedings go "according to plan". This might not necessarily be a tactic, but definately an intention.

After a meeting, allow the Chinese delegation to leave the room first.

When meeting for the first time, Chinese prefer to be formally introduced. For this reason, it is advisable to have someone present to make the formal introductions.

Respect for age is a fundamental principle in Chinese culture. The oldest person in the group should be acknowledged first. This applies even if that person is not the most senior executive who makes the final decisions.

During the introduction, do not be distracted by the "cold shoulder" or what appears to be an unfriendly manner. This is shehui dengji (social status) - a Confucian protocol where showing familiraity is considered disrespectful and a lack of self-discipline.

Copy their practise of shehui dengji. The casual Western style of "Hello, I am John, pleased to meet you" is too familiar. Be friendly, but hold back your enthusiasm.

Stand up when being introduced and remain standing until the formailities are over.

Although not traditional, the Western handshake is now accepted and widely used, but there are a few differences: Keep the handshake brief (physical contact in public is a touchy issue in Asian cultures) and importantly, not too strong. In the West a strong grip is the norm, but not in China - firm, but gentle is expected.

Bowing is not a common practice these days. Do not bow unless your Chinese counterpart does first. If so, make a fist with your right hand and cover it with your left. Now shake your hands as if you are about to throw a dice. Bow your head slightly. Do not bow from the waste. This is a Japanese custom and is politically incorrect.

During a bow, eye contact is necessary. However, during any personal interaction, keep eye contact short and do not glare into a persons eyes. This is not confortable for the Chinese, in particular woman.