Doing business in China always involves collaboration with Chinese entrepreneurs whether they are suppliers or partners. In order to make this cooperation more efficient, foreign entrepreneurs have to learn some basic Chinese business habits and try to use them in their relationship with their Chinese counterparts. This point is considered as a key strategy that will help foreign entrepreneurs to build strong and long-term ties in China. Some practical insights to get closer to the Chinese entrepreneurs include:

Learn basic Chinese: The Chinese language is considered by many as the most difficult language to learn. Indeed it is, if you want to learn the Chinese characters. However you can still learn some words in Mandarin using Pinyin, which is the phonetic writing of Chinese characters. This point can decrease the language barrier and also show your interest in learning Chinese culture. Therefore, speaking some words in will be highly appreciated by your Chinese partners, especially those who don't speak English.

Chinese meetings: Timing is very important, because Chinese entrepreneurs are mostly on time and being late could be considered disrespectful. However, scheduling a meeting usually is not done too far in advance of the actual day. For instance, if you try to schedule a meeting several weeks before, the Chinese counterpart might tell you to inform him only several days before the meeting. This way he can see if he is available or not. In some cases, if the meetings are scheduled way in advance, there is high risk of rescheduling or canceling closer to the actual date. So you should be flexible and do not be disappointed if changes take place.

At the beginning of a meeting the first step in the protocol is the exchange of business cards. Ensure you have an adequate supply of business cards because they are often distributed to all participants of the meeting. To exchange your card you should be face to face with your Chinese counterpart, hold your card with your two hands, hand it over slowly and receive his card also with two hands. It is usual that owners of Chinese companies do not speak English, so if you can have a Chinese version of your business card printed on the reverse of the English side, it will help with your introduction and be to your advantage.

Business meals: Here also the timing is very important especially because Chinese hosts usually arrive earlier than the scheduled time. In China dinnertime is usually around 6 p.m. (depending on regions), which can be considered too early for foreign entrepreneurs. Thus you should adapt your schedule and try to be on time.

Seating has a specific arrangement and guests are usually guided to their seat regarding their ranks. The main host is usually seated at the head of table, followed by the main guests and the rest of the staff. Before starting the meal, the host will give a short welcoming speech followed by a toast.

Drinking and toasting is an important part of Chinese business meals. It is normal practice that every one seated at the table toast with each other. Even if you do not drink alcohol you can still use a soft drink to make a toast. There are three important words that might help you while drinking at a Chinese meal. Gan bei (drink the whole glass), ban bei (half a shot) and sui yi (as you wish). A person, who wants to make a toast with you, will usually stand up and go to your seat. He will say one of these three words. You should also stand up, face to face, say the same word and toast. It is usual and considered a sign of respect to try and toast your glass lower than other's glass.

The meals usually do not start directly by discussion about business. First, your host may ask some questions about your country, personal life, hobbies, etc. So do not worry if the "friendly" conversations take a while, you will eventually have time to discuss business.

Giving gifts: Gift giving is an important part of Chinese business etiquette. Guests are usually expected to give a gift to their hosts whether at business meals or meetings. Gifts that are specific to your country are highly appreciated by Chinese. You can also choose company merchandise such as pens and calendars. You should give your gift at your arrival to the meeting (or meal) and may receive a gift from your host, which is often given at the end of the meeting in order to conclude proceedings. Gifts are usually not opened during the meeting, to avoid "losing face" for the person giving the gift, in case the gift is not an expensive one or inappropriate.

For some special Chinese festivals specific gifts can be given that relate to the festival.

Getting to know these common practices will go a long way toward helping your business dealings in China go off smoothly. 

Column prepared by Milad Nouri

Managing Director of China Consultants International Limited

www.China-Consultants.biz