Sunday, January 8, 2012

Business Meetings

Sadly, many noobs to Chinese business do not realize the business meetings are not where the actual deals take place. In many cases the real negotiations take place in informal conversations,
especially at meals. Both sides often know the terms of what will be agreed upon prior to the actual meeting, but not always, so stay alert at the business meetings.

Business meetings tend to be overly formal affairs. Your party will be led into a fancy conference room with microphones at each seat. Uniformed attendants will seat you, offer you tea, and linger around like waitresses. Avoid sitting down until you are told to; remember the timeless advice, “When you are invited, take the lowest place, so that when your host comes, he will say to
you, “Friend, move up to a better place.”[i]

There is usually a long table running the length of the room and the big bosses sit in the middle of the table across from each other. If there is a video or slide show the bosses tend to sit at that end of the table, where they get a front row seat to watch the A/V technician struggle with the equipment for the first 30 minutes of the meeting.

Business meetings are usually heavy on small talk and light on details of the actual business deal. This is customary. At the end of the meeting you might come to agreement in the hallway outside or later that day at dinner.

If the parties agree to work together, the frequency of formal meetings will taper off and be replaced with meals together, especially banquets celebrating national holidays and company anniversaries and accomplishments.

[i] Holy Bible, Luke 14: 10.

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