After many years of isolation from the West, China has enjoyed unprecedented growth and has become the world’s largest economy when it ousted the US economy for the first time from its place at the summit, as a result of many factors: a change in government policy, integration of the villages into the industry, investment in education, development of new trade routes to the East, and more.
Today China’s export rate is about $ 2.41 trillion a year.
China’s market share is about 25% of Amazon’s total sales each year (the total annual revenue from sales of products in Amazon is $ 118 billion).
As in any meeting with members of a different culture, one must learn, albeit superficially, the customs and conduct of the people. As befits an ancient and developed culture, Chinese culture is complex, it has the strict and uncompromising nature of the communism, yet it gives great importance to personal connections between people.
As foreign importers who buy from the Chinese, you are in a more respectable position than Chinese exporters but make no mistake – hierarchy is very important in China and every business partner of yours should be treated with respect.
As you might know, westerns are much more direct and open, and not afraid to express themselves about their opinions and feelings, whereas the Chinese culture is very introverted. This cultural difference can affect business making processes between westerns and the Chinese. In order to bridge this gap, we have gathered some useful tips to help with proper conduct with Chinese businessmen and hopefully save a few moments of embarrassment.
As we’ve said, personal acquaintance is important in Chinese culture, so if possible, it is always better to meet face to face. Consider the option of investing in a one-time trip to China to get to know the partners. Lunch or dinner will strengthen your familiarity and business ties.
For respect, you should address the person as Mr. / Madam. You may also want to shake hands. It is important to be patient, to speak in a low tone and in a restrained body language that is considered by the Chinese to be respectful, as opposed to raising the voice or exaggerating gestures, which is perceived as weakness. It is important to arrive on time and not be late.
If you can – bring a business card. Exchanging cards is very common in China and it is customary to present the cards at the beginning of the meeting, facing up to the recipient and using two hands. The card symbolizes the dignity of the person so it is important not to scribble on it or put it in your wallet – just put it on the table in front of you or take it by hand.
Gift giving is also accepted in Chinese culture and can show your seriousness in building a lasting business relationship. It is recommended (but not obligatory) to bring with you a gift that has a symbolic meaning of abundance or good luck, and to pack it in red wrapping. If you know who will be present at the meeting, it is best to bring small gifts to the junior representatives, and give a slightly larger gift to the seniors.
The Chinese give great importance to the rank of a person and therefore, the seating arrangement in the meeting needs to be considered. As is customary in meetings in China, the high echelons sit opposite each other at the table with their assistants by their sides. The highest echelon will be the host and will lead the conversation.
Ask your business partners if it’s okay to bring an interpreter. This way- if they speak English, they can answer that they do not need it, and if they don’t, they will be able to say yes, without having to answer a more direct question like “Do you speak English?” which has the potential to embarrass them.
In addition, people in China usually don’t use the word “no”; out of respect they will use indirect ways to express a lack of interest in order not to hurt the partner. The most useful indirect answer is “we’ll think about it” or “we believe it’s difficult.”
If there is a presentation or documents that need to be reviewed, translating materials in advance shows that the company has invested time and resources before the meeting / visit in China and will also allow all parties to be exposed to the information presented in the clearest way possible. When you speak, be sure to use short sentences and make sure that you went over all the details exactly, because they won’t always ask when they don’t understand – out of embarrassment. It would be a shame if small misunderstandings should lead to major problems in the process of importing the product.
Since China is a communist country, it does not have access to the Western internet and therefore to Western sites such as Google. Before a business trip to China, you will need to download a VPN application that bypasses the Chinese internet and connects to a Western network. There are a wide variety of free applications with limited trial periods, and paid applications.
Since WhatsApp is blocked in China, the Chinese use a similar application – WeChat, so it is recommended to download it and talk to your Chinese partners through it, or by email.
Unpaid VPN apps (or such with free trial periods):
Yoga VPN, Nord VPN, Express VPN, Astryl
The Chinese holiday is the New Year in China and is a major factor to be reckoned with in China. During the holiday, the entire Chinese economy is shut down, causing delays in the production and shipments of the goods.
More about the Chinese holiday in one of our next articles.