The 21st century is the Chinese century. After 30 years of economic reforms that enabled China to be the workshop of the global economy, we are now witnessing the Middle Kingdom transform into one of the world’s largest consumer markets and one of the world’s most productive centers of innovation.
The forces of globalization have shrunk our world, such that economic activity easily stretches across national borders. Companies can expand beyond their home country to foreign locations for low-cost production sites, and additional markets for their products.
Anyone hoping to have global business success in the 21st century must engage China. Despite the fact that over half a million foreigners visit China each year, many know very little about Chinese business, life, language, and culture. As China takes a more prominent role in the global hierarchy and rewrites many of the rules of the game of business, it is essential for Western
businesspeople to learn about China.
This app introduces practical matters related to everyday business interactions with Chinese people, including greetings, meetings, dress code, and of course wining and dining.
There are many rich historical and cultural traditions that influence daily life in China. Anthropologists, missionaries, and merchants have for many years tried to “become one with the people” they are interacting with. They have studied language, culture, customs, and daily life in an attempt to assimilate and have succeeded in many places…but not in China.
The pioneering missionary Hudson Taylor spoke fluent Mandarin, adopted Chinese dress and even wore his hair in the Manchu queue, but was always considered an outsider. The statesman John Leighton Stuart was born and raised in Hangzhou and fluently spoke Mandarin and the Hangzhou dialect. He went on to found Yenching University that today exists as Peking University, China’s top school.
Stuart later served as the U.S. ambassador, but when the Communists took over and expelled most foreigners, Mao famously mocked Stuart as a symbol of defeated colonialists in his poem, “Farewell Leighton Stuart.” Since then the poem has became required reading for all true young socialists.
Unlike the U.S., where foreigners can, after some time, assimilate and become American, you cannot do this in China. You will always be a 老外 lao wai An outsider. The sooner you
accept that fact, the more content you will be in your interactions in China. The
best you can hope for is to become a 中国通 zhong guo tong, meaning a China expert, or “old China hand.”
Chinese and Westerners have for centuries struggled to understand each other, but thanks to globalization, common business interests are now bridging many of the cultural divides. In fact, just as Westerners are reading books such as this one preparing to do business in China, Chinese counterparts are also studying Western ways to become more cross-culturally competent. In fact,
Jack Ma, founder of http://www.alibaba.com/ has offered “charm school” for Chinese business people to help them better understand their Western counterparts.[i]
Prior to taking the plunge into the deep end of business etiquette in China, realize there are many “etiquettes,” depending on generational and organizational factors. Older people tend to follow traditional Chinese business etiquette, while younger people are more likely to follow “global
business” etiquette…if you can define that.
Older people will enjoy 15-course banquets with you, while younger people will sip coffee or wine with you while tapping away at their iPads. Nonetheless, Chinese people of all ages are
fiercely nationalistic and are very proud to be part of a country with rich history and traditions.
Etiquette also differs along organizational lines. Government officials and managers at state-owned companies will be more traditional than employees at private firms, especially tech firms.
Consider the information in this chapter focused on the older more traditional Chinese. If you learn their ways, you’ll also be able to interact with the younger, hipper Chinese businesspeople
without making too many embarrassing business blunders that can cost your company money. Practicing proper etiquette should be a non-negotiable part of your overall China strategy.[ii]
Realize also that, when on Chinese turf, your hosts will make certain judgments
about you based on your ability to follow local customs.[iii] To become an old China hand in business you’ll need to understand key components of Chinese business etiquette that are introduced in this app including greetings, meetings, gifts, food and drink, negotiation, and
conflict resolution.
[i] Fong (2004).
[ii] Penzner (2006).
[iii] Rotella, Abbot, and Gold (2000).
Monday, February 6, 2012
Thursday, January 12, 2012
Chinese Names
Chinese people address each other usually with the surname. My good friend Zhou Zejun is called Zhou. Notice the surname comes first and the given name follows.
Most Chinese have one-word surnames and two words for the given name, but it is possible to meet someone with a two-word surname, or a one-word given name.
In a business context, Zhou is called by his title, such as Director Zhou. Chinese people who regularly interact with foreigners usually give themselves an English name. In the U.S., my friend goes by “Gary Zhou.”
Quite a few Chinese have taken on silly English names, so try not to laugh when you are
introduced to Sonic, Apple, Lemon, Cinderella, Cloud, Megatron, or Lollipop. While we’re on the subject, try not to laugh when you are introduced to people with funny sounding Chinese names like Poo, Kok, Pee-Pee and Long Dong. These are especially prevalent in Singapore and Hong Kong. One doofus surnamed Kok actually took Harry as his English name.
In a personal context, people often call each other by a nickname that references the relationship. An older colleague might call my friend 小周 Xiao Zhou meaning little Zhou. Close acquaintances often call each other by family titles, especially younger sister, elder sister, elder brother, uncle, aunt, and so on, even though they are not related.
If you’ll be doing a lot of business in China, consider getting your own Chinese name. Mine is 司徒仁. The ideal Chinese name sounds like your English name, and has the same meaning. My Chinese surname 司徒 Situ sounds like Stu, and actually means “manager” just as Stuart means “steward” in English. In fact many famous people named Stuart have this as their Chinese name including Leighton Stuart, and the cute and competent mouse, Stuart Little. It helps that 司徒
is a normal family name without negative connotations. My given name was suggested by some Chinese friends. It is 仁 ren, which means benevolence and is an important Confucian virtue.
Most Chinese have one-word surnames and two words for the given name, but it is possible to meet someone with a two-word surname, or a one-word given name.
In a business context, Zhou is called by his title, such as Director Zhou. Chinese people who regularly interact with foreigners usually give themselves an English name. In the U.S., my friend goes by “Gary Zhou.”
Quite a few Chinese have taken on silly English names, so try not to laugh when you are
introduced to Sonic, Apple, Lemon, Cinderella, Cloud, Megatron, or Lollipop. While we’re on the subject, try not to laugh when you are introduced to people with funny sounding Chinese names like Poo, Kok, Pee-Pee and Long Dong. These are especially prevalent in Singapore and Hong Kong. One doofus surnamed Kok actually took Harry as his English name.
In a personal context, people often call each other by a nickname that references the relationship. An older colleague might call my friend 小周 Xiao Zhou meaning little Zhou. Close acquaintances often call each other by family titles, especially younger sister, elder sister, elder brother, uncle, aunt, and so on, even though they are not related.
If you’ll be doing a lot of business in China, consider getting your own Chinese name. Mine is 司徒仁. The ideal Chinese name sounds like your English name, and has the same meaning. My Chinese surname 司徒 Situ sounds like Stu, and actually means “manager” just as Stuart means “steward” in English. In fact many famous people named Stuart have this as their Chinese name including Leighton Stuart, and the cute and competent mouse, Stuart Little. It helps that 司徒
is a normal family name without negative connotations. My given name was suggested by some Chinese friends. It is 仁 ren, which means benevolence and is an important Confucian virtue.
Wednesday, January 11, 2012
Greetings
When meeting Chinese people for the first time it is customary to make eye contact, shake hands, and nod gently. Don’t get too carried away and start bowing like the Japanese. Chinese people
are way mellower than Japanese people.
Also, avoid getting too touchy, patting people on the back, hugging and carrying on like some do in the U.S. Just as in the West, most people state their name and say “Nice to
meet you.”
It would be good if you’d learn to speak some basic Chinese,
especially 你好 ni hao meaning “hello,” or better yet, use the more respectful 您好
nin hao.
You should also learn to say 我叫 __________ wo jiao __________ meaning “My name is __________.” And finish up with 很高兴认识你 hen gao xing ren shi ni meaning “Very
happy to meet you.”
When you first meet your Chinese counterparts, it may not be apparent who the true decision-makers are. The person you interact with most was likely assigned to you because they speak better English than anyone else at the company. It is possible they majored in English, but do not know much about the business, especially technical matters.
Pay attention to job titles, and other clues, such as the way your counterparts interact with each other. An old tradition is that the most senior member of the group enters the room last.
Dress, offices, cars also offer clues to a person’s status in China. The lists below shows commonly used titles you might encounter. Use this list to try to determine your counterpart’s status.
Common Job Titles in Business
厂长
chang zhang
factory manager or director
车间主人
che jian zhu ren
plant foreman
工程师
gong chen shi
engineer
主人
zhu ren
director
经理
jing li
manager
总
zong
chief
Common Job Titles in Government
主席
zhu xi
chairman of a committee
部长
bu zhang
minister
处长
chu zhang
director
副
Fu
deputy or vice
副总理
fu zong li
cadre, party official
科长
ke zhang
section head
省长
sheng zhang
governor
市长
shi zhang
mayor
总理
zong li
premier
are way mellower than Japanese people.
Also, avoid getting too touchy, patting people on the back, hugging and carrying on like some do in the U.S. Just as in the West, most people state their name and say “Nice to
meet you.”
It would be good if you’d learn to speak some basic Chinese,
especially 你好 ni hao meaning “hello,” or better yet, use the more respectful 您好
nin hao.
You should also learn to say 我叫 __________ wo jiao __________ meaning “My name is __________.” And finish up with 很高兴认识你 hen gao xing ren shi ni meaning “Very
happy to meet you.”
When you first meet your Chinese counterparts, it may not be apparent who the true decision-makers are. The person you interact with most was likely assigned to you because they speak better English than anyone else at the company. It is possible they majored in English, but do not know much about the business, especially technical matters.
Pay attention to job titles, and other clues, such as the way your counterparts interact with each other. An old tradition is that the most senior member of the group enters the room last.
Dress, offices, cars also offer clues to a person’s status in China. The lists below shows commonly used titles you might encounter. Use this list to try to determine your counterpart’s status.
Common Job Titles in Business
厂长
chang zhang
factory manager or director
车间主人
che jian zhu ren
plant foreman
工程师
gong chen shi
engineer
主人
zhu ren
director
经理
jing li
manager
总
zong
chief
Common Job Titles in Government
主席
zhu xi
chairman of a committee
部长
bu zhang
minister
处长
chu zhang
director
副
Fu
deputy or vice
副总理
fu zong li
cadre, party official
科长
ke zhang
section head
省长
sheng zhang
governor
市长
shi zhang
mayor
总理
zong li
premier
Tuesday, January 10, 2012
Business Cards
Offer your business card with two hands with the text upright so the recipient can read it. When you receive someone’s business card accept it with two hands, and resist the urge to toss it in your pocket shouting, “I’ll call ya!”
To give face, you should examine the card, reading every part of it. Flip it over and examine the backside. Never put someone’s card in your back pocket; it is an insult to put your nasty
stinky butt cheeks on someone else’s name card.
Chinese business cards generally have a Chinese side and an English side. If you’re going to do much business in China, you should also have bilingual cards made. If your company resists, just visit your local printer with a .pdf file and make them yourself, but read this sign as showing that
your company is not very serious about its China efforts.
Some people say you should use red and gold as a sign of wealth, but it’s been my experience those who are truly wealthy have simple black and white cards.
To give face, you should examine the card, reading every part of it. Flip it over and examine the backside. Never put someone’s card in your back pocket; it is an insult to put your nasty
stinky butt cheeks on someone else’s name card.
Chinese business cards generally have a Chinese side and an English side. If you’re going to do much business in China, you should also have bilingual cards made. If your company resists, just visit your local printer with a .pdf file and make them yourself, but read this sign as showing that
your company is not very serious about its China efforts.
Some people say you should use red and gold as a sign of wealth, but it’s been my experience those who are truly wealthy have simple black and white cards.
Monday, January 9, 2012
Dress Code
The business etiquette police make a point to emphasize, “Don’t wear bright colors. Dress modestly.” Ignore the etiquette police and just be yourself.
If you are an attorney or accountant, dress like one. If you are a scientist or technician, you should also look the part. Relax, be yourself, just avoid overdressing or underdressing.
Context should also help you decide how to dress. Business casual is fine at most meetings. Save the suit and tie for events that might be photographed such as ground-breakings or contract signings. Banquets tend to occur in the evening after work, and most Chinese take off the coat and tie and relax a bit.
Weather is also a factor. In the south and the east much of the year is very hot, so dress appropriately. Northern winters are quite harsh so you’ll need a full winter kit including long underwear. Few buildings utilize central heating, so you’re gonna freeze both outdoors and indoors.
After seven years of taking businesspeople and business students to China I’ve really only encountered two dress problems. The first is that we tend to overdress when visiting factories. It can be uncomfortable and embarrassing wearing a suit and tie walking past welding robots with sparks flying while everyone else is in steel toe boots and hard hats. The other problem is with Western women having little understanding of business attire standards in Asia. In many business contexts in the West, women wear shirts that are too low, and skirts that are too high. High heels are great for date night, but they connote aggressiveness or even sexual promiscuity in many contexts in China. Better to play it conservative and go with a low skirt and a high neckline.
If you are an attorney or accountant, dress like one. If you are a scientist or technician, you should also look the part. Relax, be yourself, just avoid overdressing or underdressing.
Context should also help you decide how to dress. Business casual is fine at most meetings. Save the suit and tie for events that might be photographed such as ground-breakings or contract signings. Banquets tend to occur in the evening after work, and most Chinese take off the coat and tie and relax a bit.
Weather is also a factor. In the south and the east much of the year is very hot, so dress appropriately. Northern winters are quite harsh so you’ll need a full winter kit including long underwear. Few buildings utilize central heating, so you’re gonna freeze both outdoors and indoors.
After seven years of taking businesspeople and business students to China I’ve really only encountered two dress problems. The first is that we tend to overdress when visiting factories. It can be uncomfortable and embarrassing wearing a suit and tie walking past welding robots with sparks flying while everyone else is in steel toe boots and hard hats. The other problem is with Western women having little understanding of business attire standards in Asia. In many business contexts in the West, women wear shirts that are too low, and skirts that are too high. High heels are great for date night, but they connote aggressiveness or even sexual promiscuity in many contexts in China. Better to play it conservative and go with a low skirt and a high neckline.
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.
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.
Saturday, January 7, 2012
Gifts
Gifts are regularly exchanged at initial business meetings. Gifts are considered goodwill gestures between the two companies, rather than between the individuals. Just as in the U.S., companies give a variety of pens, bags, and other practical things that bear the company’s logo. For more thoughtful gifts, consider something related to your hometown.
Coming from California, we’ve found our Chinese counterparts appreciate a box of See’s candy or a gift box of California products such as cashews.
If you forgot your gifts or ran out, just visit the local fruit shop or flower shop. Both will quickly prepare a beautiful basket for you at a fraction of the cost you’d expect to pay.
It is customary to refuse gifts and invitations at least twice before accepting. The Chinese are very hospitable and will offer generously even when it is not in their means to be generous. Stories abound of the ignorant foreigner who accepted a farmer’s offer to have dinner not knowing the farmer’s family would consequently miss a meal. Refusing a gift gives significant face to the other person. If they are sincere in their offer, they’ll offer again. If not, they didn’t really mean it.
It is important to wrap gifts, usually in red or gold paper or ribbons. Avoid using black or white because these are associated with funerals. Often the wrapping is more auspicious than the gift itself. I once received a necktie from my good friends at Zhejiang University. The tie itself was
packaged in nine different layers of wrapping, ribbons, boxes, and so on.
Present and receive gifts just as you would business cards, that is, with two hands. The Chinese historically did not open gifts in front of the giver, lest the giver lose face if the gift is not as auspicious as it could be.
These days many folks seem to want you to open the gift in front of them so they can see your reaction, but also because they may not know what the gift is, because their assistant picked it out.
I once exchanged gifts with Zhou Wei, the famous fashion photographer. He told me to open the package, so I did, and it was a preserved duck…the entire duck, head and all. I figured it must be some delicacy, but he just shrugged his shoulders and said he didn’t know what to do with it. Customs officials at LAX confiscated my duck anyway, so I never got to taste how delicous it must have been.
A few gifts are taboo, especially clocks. When the mayor of Wuhan visited our university in California, our provost gave the shocked mayor a clock. The words for “gift clock” are 送钟 song zhong, which sounds just like 送终 song zhong, which means “pay last respects.” Therefore clock gifts are a symbol of the recipient’s impending death.
Other death-related gifts are handkerchiefs, white flowers, or umbrellas. Similarly, sharp objects such as scissors and knives symbolize the severing of a relationship, so skip these.
Also be aware of numerology. For example don’t give four of anything, since four is associated with death. Better to round up to five, or better yet eight.
Coming from California, we’ve found our Chinese counterparts appreciate a box of See’s candy or a gift box of California products such as cashews.
If you forgot your gifts or ran out, just visit the local fruit shop or flower shop. Both will quickly prepare a beautiful basket for you at a fraction of the cost you’d expect to pay.
It is customary to refuse gifts and invitations at least twice before accepting. The Chinese are very hospitable and will offer generously even when it is not in their means to be generous. Stories abound of the ignorant foreigner who accepted a farmer’s offer to have dinner not knowing the farmer’s family would consequently miss a meal. Refusing a gift gives significant face to the other person. If they are sincere in their offer, they’ll offer again. If not, they didn’t really mean it.
It is important to wrap gifts, usually in red or gold paper or ribbons. Avoid using black or white because these are associated with funerals. Often the wrapping is more auspicious than the gift itself. I once received a necktie from my good friends at Zhejiang University. The tie itself was
packaged in nine different layers of wrapping, ribbons, boxes, and so on.
Present and receive gifts just as you would business cards, that is, with two hands. The Chinese historically did not open gifts in front of the giver, lest the giver lose face if the gift is not as auspicious as it could be.
These days many folks seem to want you to open the gift in front of them so they can see your reaction, but also because they may not know what the gift is, because their assistant picked it out.
I once exchanged gifts with Zhou Wei, the famous fashion photographer. He told me to open the package, so I did, and it was a preserved duck…the entire duck, head and all. I figured it must be some delicacy, but he just shrugged his shoulders and said he didn’t know what to do with it. Customs officials at LAX confiscated my duck anyway, so I never got to taste how delicous it must have been.
A few gifts are taboo, especially clocks. When the mayor of Wuhan visited our university in California, our provost gave the shocked mayor a clock. The words for “gift clock” are 送钟 song zhong, which sounds just like 送终 song zhong, which means “pay last respects.” Therefore clock gifts are a symbol of the recipient’s impending death.
Other death-related gifts are handkerchiefs, white flowers, or umbrellas. Similarly, sharp objects such as scissors and knives symbolize the severing of a relationship, so skip these.
Also be aware of numerology. For example don’t give four of anything, since four is associated with death. Better to round up to five, or better yet eight.
Subscribe to:
Posts (Atom)