Meeting a Dragon and Kung fu!

A while ago we dug down deep with “meeting a beer and sausage” on how to deal with Germans when it comes to making business, which got immense response and praise, also, I received many requests on getting into other business cultures around the world.
In this article I would try and get inside a Chinese brain. Reason being, this communist powerhouse plays a huge role in global economy and is Asia’s largest industrial super power next only to japan and India.

When we saw the Germans we saw a neatly placed social structure that has made the Germans a fairly conservative lot. However the Chinese are more open and social when compared to the Europeans.

So lets get down to business.

The Chinese mindset basically runs on the concept of Confucianism

Confucianism revolves around the concept of harmonious relationships. If proper behavior through duty, respect and loyalty are shown in the relationships between a boss- employee, family members and friends, society as a whole will function smoothly.

When doing business in China it is possible to see how Confucianism affects business practices. Of the less subtle manifestations are an aversion to conflict, maintenance of proper behavior and the preservation of ‘face’. Now this ‘face’ here is tricky business.
Roughly translated as ‘good reputation’, ‘respect’ or ‘honor,’ you gotta learn the delicateness of the concept and understand the possible impact it could have on your business in China. (for more extensive details Google ‘Gei MianZi‘)
It is critical that you give face, save face and show face when doing business in China.

Lets head to some pointers now.

• Seniority is very important to the Chinese especially if you are dealing with a State owned or government body. Instead of addressing the other party as Mr or Mrs so and so, it is always appropriate to address the other party by his designation i.e., Chairman So and So, Director So and So or Manager So and So.
• Meetings must be scheduled in advance.
• Some literature regarding your company should be forwarded to introduce the company.
• Try and book meetings between April – June and September – October.
• Avoid all national holidays especially Chinese New Year.
• Prior to any meeting always send an agenda. The Chinese approach meetings differently than the germans, so rather than beginning with minor or side issues and working your way up to the core issue, reverse this.
• In China, meetings start with the shaking of hands (one or both clasped) and a slight nod of the head. Be sure not to be overly vigorous when shaking hands as the Chinese will interpret this as aggressive.
• The Chinese are not keen on physical contact – especially when doing business. Be sure not to slap, pat or put your arm around someone’s shoulders.
• Punctuality is vital when doing business in China. Ensure you are early as late arrivals are seen as an insult. Meetings should begin with some brief small talk.
• Body language and movement are both areas you should be conscious of when doing business in China. You should always be calm, poised and controlled. Body posture should always be formal and attentive as this shows you have self-control and are worthy of respect.
• If this is your first meeting then talk of your experiences in China so far (who doesn’t like flattery?). But keep it positive and avoid anything political.
• Never become too informal and avoid humor. This is not because the Chinese are humorless but jokes may be lost in translation and hence be redundant.
• The Chinese are renowned for being tough negotiators. Their primary aim in negotiations is ‘concessions and rebates’. Always bear this in mind when formulating your own strategy. You must be willing to show compromise and ensure their negotiators feel they have gained major concessions. One known strategy for Chinese negotiators is to begin negotiations showing humility and deference. This is designed to present themselves as vulnerable and weak. You, the stronger, will be expected to help them through concessions.
• Business cards are exchanged on an initial meeting. Make sure one side of the card has been translated and try and print the Chinese letters using gold ink as this is an auspicious color. Mention your company, rank and any qualifications you hold. When receiving a card place it in a case rather than in a wallet or pocket.
• Make sure you have done your homework before doing business in China. The Chinese plan extensively and will know your business and possibly you inside out.
• Lastly, be patient and never show anger or frustration. Practice your best ‘poker face’ before negotiating with the Chinese. Once they figure out that you are uncomfortable they will exploit the weakness.
• Decisions will take a long time either because there is a lack of urgency or simultaneous negotiations are taking place with competitors or because the decision makers are not confident enough.

Coming down to other business interactions:

The Chinese are big drinkers especially in Northern and Western China. It does not matter if it is lunch or dinner; as long as a meal is being hosted, there will be alcohol.

Chinese wine is the favorite, followed by red wine and beer. Chinese wine is more like fuel than liquor, having a alcohol concentration as high as 60%! No matter how good a drinker you may think of yourself, never, ever challenge a Chinese into a drinking contest. They will win, hands down, thank you beijing, Good night! It is often seen as rude not to drink with the Chinese in a formal dinner. To maintain your sanity, either claim to be a non alcoholic or plead medical grounds as an excuse. This will let you off the hook with little or minimal drinks. Better yet, bring a partner who can drink on your behalf!

A quick pointer for Indians and westerners: It is impolite to fight for the bill or worst, split the bills.

And lastly there are some taboo areas in social conversations with the Chinese. Try to avoid these conversational topics as much as possible. I have seen many nasty arguments as a result of these topics:

1. You must neither mention that Taiwan is an independent state or a country nor point out that Arunachal Pradesh is an Indian state.
2. You must NEVER praise the Japanese or be seen to be good buddies with them.
3. During casual business meets do keep in mind that you can condemn Mao Tse Tung (communist revolutionary that people hate) but avoid criticizing Deng Hsiao Ping ( communist revolutionary that people love).
4. You must not praise Shanghai in front of natives of Beijing and similarly vice versa.

Other than that, you are pretty safe to converse with the Chinese anything under the sun!

Until next time Yiche shunli!!

The Waterman