China continues to evolve in ways that are bringing it in closer contact with the rest of the world. Nonetheless, the country remains a place where business travelers need to tread carefully.
Appointments—You will need to establish local business contacts before journeying to China. Begin by contacting the department of your government that deals with international business (the U.S. Department of Commerce, for instance, or the American Chamber of Commerce in Shanghai, http://www.amcham-shanghai.org). It can put you in touch with business and government personnel in China. Once in the country, remember that punctuality on the part of all parties is very important (for both business and social occasions). If you are late, it not only reflects badly on you, but it can be perceived as a slight that may put the whole business relationship into question.
Personal Introductions—Handshakes are now the norm, accompanied by a slight nod of the head or a slight bow. Maintain a formal demeanor during introductions. Official titles are important. When the person has no official title, use standard English titles unless you are fluent in Mandarin: "Mr.," "Ms." (unmarried female) and "Madam" (married female—the title should accompany her maiden name). The Chinese typically have two or three names: The first is the family name, and that's the one that should be paired with the title (thus, Hu Jintao is referred to as President Hu). Your business cards should have English on one side and a Chinese translation on the other; in swapping, them use both hands to give and take each card. Read visibly the business cards you receive and treat them with respect by leaving them on the table in front of you during the meeting. At the end of the meeting, place the cards in a dedicated business card wallet or holder, separate from that in which you carry cash and credit cards.
Negotiating—Business meetings begin with a short interval of polite conversation of a general nature, usually over tea or drinks. Hard-driving, get-right-to-the-point tactics usually backfire. Negotiations will typically be protracted and involved. Multiple meetings on the same issues are not unusual. Expect the unexpected, and do not be thrown by last-minute complexities or demands; unflustered patience is critical. If you have a deadline, do not reveal it. The host may signal the end of a meeting by offering more tea. The correct response is to decline the offer and say that you are ready to leave. If the host thanks you for coming, that, too, is a clue that the meeting is over.
Business Entertaining—Evening banquets are often extravagant affairs with many courses and often exotic foods. Expect many toasts throughout the evening, often with Chinese liquor (baijiu). If you do not drink or are among the many foreigners who don't enjoy its taste, politely decline by toasting with your tea or other drink. Business is usually not discussed at large banquets. At other business meals, it is appropriate to discuss business if your host initiates the discussion.
Body Language—Observe a very formal body posture. Refrain from touching, and keep gestures to an absolute minimum.
Gift Giving—On the whole, gift giving in business is not common, and caution should be exercised. Gifts given to an entire group or company usually get a better response than those given to an individual. Do not bestow the gifts until negotiations have been completed. If you receive a gift, do not unwrap it until you are out of the presence of the giver. The color of a gift and its wrapping paper have great significance. Two good choices are red (the color of luck) and yellow (the color of prosperity). Avoid items and wrappings that are white, because that color is associated with funerals. Clocks of any color can have the same connotation.
Conversation—Avoid politics, especially such sensitive issues as Taiwan, the Communist Party, China-U.S. relations, human-rights issues or the 1989 uprising in Tiananmen Square. Regardless of your acquaintances' real feelings, they will most likely not be comfortable expressing themselves to you and certainly not in public. History, family and Chinese culture are all good topics. Be careful if you compliment someone on their possessions. An article of clothing or a home decoration you comment on favorably may be offered to you—don't accept.
