Tip of the Month for May 2005
Chinese Charm School

One would have to live in a cave not to know that China has become a big part of the global economy. News magazine abound in articles about expanding businesses in China. Several books have recently hit the market with respect to doing business halfway around the world. How we do business compared to our Chinese counterparts has piqued the interest of many. Chinese etiquette intelligence will give you a competitive edge and propel you to building relationships.

Why is it important to understand international etiquette and protocol? For the same reason it’s important to know and understand what is expected in our own culture. It’s simple: if someone does not wish to do business with you because of poor etiquette or poor manners, they will never tell you. This is especially true when dealing with a client or counterpart from a different country. Unfortunately, when it comes to basic protocol of international trade, many professionals lack the necessary manners, sophistication, or experience.

Prior to establishing contact, whether by email, over the phone, or in person, it is important to understand the proper way to handle yourself. Minor blunders can cost you and your company business.

Several months ago I read an article in The Wall Street Journal about etiquette seminars in China. This seminar was intended for Chinese professionals learning about American etiquette. Some of the topics included phrases like, “How are you?” and “It was great to hear from you.” They were taught to not include a litany of prices and dates in their emails, but spend more time chitchatting with clients.

A Chinese business owner was appalled after attending the World Economic Forum in Beijing. He said he was “depressed” by the way some of the local businessmen behaved in business situations. Many smoked constantly and held loud cell phone conversations during meetings. In other forums held in Davos and Singapore, “nobody behaved like that,” he said.

This article was encouraging because it shows that we aren’t the only ones who are conscientious about our behavior, particularly when it comes to business. This is a smart move on the part of the Chinese professionals. We can learn from that and educate ourselves on what is appropriate behavior when dealing with our Chinese counterparts.

Here are a few tips:

Conversation

Always address a person using his or her family name only, preceded by an honorific. And in business it is appropriate to follow their name with their title.

Do not try to get too casual with your counterpart. While here we may strive to quickly rid ourselves of such formalities, this is not the case in China.

Negative replies are considered impolite. Instead of saying “no,” answer “maybe,” “I’ll think about it,” or “we’ll see” and get into specifics later. Know that if your Chinese counterpart says “no big problem” or “the problem is not serious,” they usually mean “there are still problems.”

In Chinese, questions like “Have you eaten?” or “Where have you been?” are equivalent to “How are you?” These questions don’t need a literal answer: simply answer “yes” – even if you haven’t actually eaten – or simply smile and say “thank you.”

Welcome topics of conversation include Chinese scenery and landmarks, weather, climate and geography, and Chinese art.

Refrain from using the terms: “Red China,” “Mainland China,” and “Communist China.” Just say “China.”

The Chinese will sometimes nod as an initial greeting. Bowing is seldom used except in ceremonies. Handshakes are popular; wait, however, for your Chinese counterpart to initiate the gesture.

If you are visiting a workplace and are greeted with applause as a sign of welcome, you should respond by applauding back.

Avoid using too many arm, hand, or facial gestures.

The Chinese, especially those who are older and in positions of authority, dislike being touched by strangers.

Acknowledge the senior person in the group first.

Now Lets Make A Deal
What you should know before negotiating

In China it is assumed the first person that enters the room is the head of the group. This is helpful when meeting for the first time.

It is important to bring your own interpreter to meetings.

Speak in short, simple sentences and do not use slang. Pause frequently so they can clearly understand what you are saying.

Presentation materials should be printed only in black and white. Avoid colors that have special meanings.

It is important to know that belief in the Communist party line will be a dominant influence in all negotiations.

“Saving Face” is an important concept to understand. I have read much on this subject. In Chinese business culture, a person’s reputation and social standing rests on this concept.

Prior to even making an appointment with a counterpart, you should have someone make an introduction. Doing business with someone that simply walks in the door would cause the Chinese to lose face. There are other facets to losing face; it can be complex. Once you understand the culture and the history you will have an idea of what kind of things would cause a Chinese professional to lose face.

The Chinese are very keen about exchanging business cards, so be sure to bring a plentiful supply. Make sure to have one side printed in English and the other in Chinese. I suggest this practice when dealing with almost all international counterparts.

Just as in Germany, titles are very important. The main point of exchanging business cards in China is to determine who the key decision makers are.

A good tip: having your cards printed in gold color signifies prestige and prosperity.

Make sure you present your card with both hands, and that the writing is facing the recipient. This is also good practice in our culture. Receive a card with both hands, take a moment to look at the card, and then lay the card on the table in front of you. This is common practice in Japan as well. It is an insult to quickly place the card in your pocket.

Always know who the most important person is when dealing with an entire team.

The Business Meal

Business lunches are growing in popularity. Morning tea is also popular, though breakfast is not. Evening banquets are most popular.

Wait to be seated; there is a seating etiquette based on hierarchy in Chinese business culture.

Generally, the seat in the middle of the table, facing the door, is reserved for the host. The most senior guest of honor sits directly to the left. (This is opposite from our etiquette.) Everyone else is seated in descending order of status.

The host is the first person at the table allowed to begin eating by declaring the first toast.

Business is not discussed during the meal. This is something I continue to suggest here, too. We are perhaps the only culture that tries to squeeze every ounce of business conversation in during meals. This is not polite in most other cultures.

Leaving a clean plate is perceived to mean that you were not given enough food, a terrible insult to the host.

One of the most important parts of a Chinese business meal is a tea drinking ritual known as “yum cha.” It is used to establish rapport before a meeting or during meals.

Much like Japan with sake, if you don’t want a refill of tea, leave some in your cup.

It’s perfectly acceptable to reach in front of others for dishes and other items.

I could write an entire tip on using chopsticks. Prior to going to China, make sure you brush up on your utensil etiquette.

Toothpicks may be passed between courses. When using a toothpick, cover your mouth with your other hand.

The Chinese are much like Japanese when it comes to after-hour socializing. In order to form a personal relationship in your business dealings it is important to participate in the drinking that takes place. If you do not wish to partake, prepare a believable medical excuse for yourself.

Sometimes the Chinese enjoy testing your drinking ability, especially with clear alcohols that might compare to airline fuel! Make sure to have something in your stomach if you feel up to the challenge.

The meal has reached its conclusion when fruit and hot towels are presented. Guests should then prepare to depart. It is impolite in Chinese culture for the host to initiate a guest’s departure.

Tipping is generally considered an insult in China, though in some of the bigger cities, hotel workers and younger servers will accept tips.

Reciprocate your host with a banquet of equal value. Never outdo your host with a lavish party.

If you are hosting a banquet make sure you arrive at least 30 minutes earlier than your guests.

Finally, understanding the meaning of other cultures is key to understanding etiquette intelligence. Traditions, history and beliefs are essential when trying to gather more information about your counterpart.

One of my favorite authors is Roger E. Axtell, author of “Do’s and Taboos Around the World.” If you are traveling abroad, whether for business or pleasure, I recommend this book – it might save you from an embarrassing moment.

Mind Your Manners specializes in seminars and consulting services in business etiquette and international protocol. For more information, please contact Amy Palec at (262) 376-0515 or visit her web site www.amypalec.com.

© 2005 Amy L. Palec