Business in China

conducting business in China

conducting business in China

China today is simultaneously the world 's largest start-up and the world 's largest turnaround . It draws on a 2 ,000-year tradition , yet it is inhaling Western business know-how and technology , doing everything at the same time and for the first time . A Communist dictatorship determined to practice its own form of capitalism , China has long perplexed foreign investors who find Chinese business practices opaque and contradictory (McGregor , 2005 , iix

For Western companies to set up and maintain viable businesses in China

it is essential that they have an understanding of Chinese heritage Despite the gradual infiltration of Western culture , Chinese culture is still governed by an ancient set of values . These historical practices remain highly visible in all interactions between Chinese people . This examination identifies key elements of Chinese customs and business practices and explains their significance

Cultural

A distinguished academician once said , `There 's no need for books on doing business in particular regions such as China . After all , doing business in China is just the same as doing business anywhere else This being China , that observation is both true and not true

Because there are differences between China and the West , differences in history , philosophy , politics and society . And because business is essentially a social process , there are differences in ways of doing business as well . This has two consequences for Westerners : when in China they have to adjust their ways to fit the environment and in the rest of the world they can apply what they have learned from China

Cultural business practices in China requiring the exchanging of business cards . One side should be printed in English and one in Chinese . You should present your card with both hands and with the Chinese side facing up . When accepting your colleague 's card , it should be studied carefully before placing it on the table , never in the back pocket , this is extremely disrespectful . Small talk is another important element before commencing a business meeting . There are no firm rules regarding conversation . But don 't be surprised if your host asks your age , marital status , about your children or your family status . They are simply trying to find common ground . Depending on the closeness of the relationship , business may or may not be discussed (Business Customs / Etiquette , 2002 , 32

The Chinese sense of time means that they use it knowingly and there is always enough . Therefore , humbleness and patience is the key to success

In most cases , initial meetings may be more of a social opportunity as oppose to a negotiation discussion

There are number of critical business etiquette practices such as maintaining eye contact when in conversation . It 's considered untrustworthy to avoid eye contact . Remember to address your Chinese counterparts with a title and their last name . If the person does not have a title , use 'Mr ' or 'Madam ' and wait for your counterpart to initiate formal greetings . Handshakes are the most popular gesture Instead of...