Business Practices and

related Environmental
factors of
China

Danish Ahmed
John Borgoyari
Amrita Gupta
Abhipoorn Gupta
Vaibhav Raj

Their attitudes and

behaviour are rooted in a

culture that is diametrically
opposed to Western
thought.
Boye

Flow of Presentation
.

Introduction
The People's Republic of Chinais the world's largest market, with a
population of 1.3 billion people. China is a blend of growing
modernization and ancient culture. Anyone considering the Chinese
market should never underestimate the importance of culture.

Two of the most important concepts in Chinese culture

areguanxiand mianzi. The first,guanxi, has been defined as sharing
favors between individuals, connections, relationships, and the
ability to exert influence.The second,mianzi, means face: saving
face, losing face, and giving face.

The most fundamental cultural difference between Chinese and

Americans relates to the role of the individual. The Chinese place
great importance on the family, group, consensus, and surface
harmony.

Introduction
Capital: Beijing
Climate: extremely diverse; tropical in south to subarctic
in north
GDP
Religions: Daoist (Taoist), Buddhist, Muslim 1%-2%,
Christian 3%-4%
Government: Communist state

Hofstedes Model

Hofstedes Model
100
87

90
80

80

77

70

66

60

56
51

48

50

40

40
30

30

24

26

20

20
10
0

Power Distance

Individualism

Masculinity
China

Uncertainty Avoidance
India

Pragmatism

Indulgence

Basic Etiquettes

Greetings and Introductions

Chinese prefer to be formally introduced to someone
new. This applies to both Chinese and foreigners
Do not be surprised if you are applauded. Be sure to
applaud back.
Always stand up when being introduced and remain
standing throughout the introductions
When being introduced to Chinese, the accepted form
of greeting is the handshake, even among Chinese.
Chinese may also nod or slightly bow
Unlike the Japanese, the Chinese bow from the
shoulders rather than the waist

Business Card Presentation and Exchange

Use both hands when presenting business cards and be sure
the writing faces the person to whom you are presenting
your card
Cards should also be received with both hands. Do not
immediately put the card in a pocket or bagthis is
considered rude. Never put a card in your back pants pocket.
This would be the same as sitting on someones face
Follow with I am pleased to meet you/how are you?Ni
haoin Chinese
When seated, place cards on the table. This shows respect
and is also an excellent way to remember names
Never deal out your cards across the table like a game of
cards this is very rude

Forms of Address and Titles

The Chinese will state their last name first, followed by the
given name (may be one or two syllables). For example,Liu
Jianguo, in Chinese would be Mr.Jianguo Liuusing the
Western style
Never call someone by only his or her last name. Unless
specifically asked, do not call someone by his or her first
name
Addressing someone by his or her courtesy or professional
title and last name conveys respect. In Chinese the name
precedes the title. For example, Liu Xiansheng for Mr.Liu,
andLiu Jinglifor ManagerLiu
Womens names cannot be distinguished from men's
names. Chinese women use their maiden names even after
marriage, but may indicate marital status by using Mrs.,
Ms., Miss, or Madam. Mrs.Wangmight be married to Mr.Liu

Contd.

Courtesy titles for women include:

TaitaiorFuren= Mrs. or Madam
Nushi= Ms.
Xiaojie= Miss
Foreign women may be addressed by using Miss plus the first name.
Jane Smith may be Miss Jane
Chinese who frequently deal with foreigners or travel abroad on
business may adopt a Western first name, such as David Liu. They may
request that they be referred to as David, once a relationship has been
established
Do not use the term "comrade" in China
Among themselves, they often call each otherLaoLi, or Xiao Li,in
which Lao means Senior or older and Xiao means young and junior.
People are comfortable relating to each other with the age factor
clearly defined. Chinese culture stresses respect for the old and care
for the young

Personal Questions

Do not be surprised when asked personal questions regarding age,

marital status, children, family, income, job, etc. This is done to seek
common ground
On the other hand, the Chinese will be uncomfortable with American
familiarity, particularly early in a relationship
Compliments
Unlike the Western custom, compliments are not graciously accepted
with a thank you, but rather with not at all or it was nothing.
Accepting and giving direct praise is considered poor etiquette
A common Chinese phrase isnali, meaning where. However, the
Chinese will use this expression to convey not at all or it really isnt
anything
However, among the younger generation and those who often deal
with foreigners, they often respond to compliment with a thank you

Silence

Silence is used effectively. Not talking while others do

signifies politeness
Silence in meetings and during discussions gives one the
opportunity to carefully consider what is being said and
formulate an appropriate response. Resist the urge to fill the
silence and continue talking. Patience is indeed a virtue
The Chinese concept of privacy differs significantly from
that in the West, where people are used to having their own
space, office, room. The Chinese are not accustomed to this
luxury. Privacy to them relates to their own thoughts and
emotions that they proudly keep to themselves
Saying No
Refusing requests and saying no can cause a loss of face
and disrupt surface harmony
The Chinese have many ways of indicating refusal without
actually saying no. Commonly you will hear that would

Farewells

When departing, accompany guests beyond the door of the

office or meeting room. Guests should be accompanied to
the elevator.

The host will accompany a high-ranking guest all the way to

the car, and wait until the car has departed before leaving.
Dont turn your back to the car until it is out of sight

Social Distance
Every culture defines proper distance. Westerners, particularly
Americans, find that the Chinese comfort zone regarding
distance is a bit too close for their comfort
Instinctively Westerners may back up when others invade their
space. Do not be surprised to find that the Chinese will simply
step closer.
The Chinese do not like to be touched, particularly by strangers.
Do not hug, back slap or put an arm around someones shoulder
Do not be offended if you are pushed and shoved in a line. In
some circumstances, the Chinese do not practice the art of
lining up and courtesy to strangers in public places is not
required
People of the same sex may walk hand-in-hand as a gesture of
friendship in China

Gestures & Customs

Western gestures that are taboo in China include:

Pointing the index finger--use the open hand instead
Using index finger to call someoneuse the hand with fingers motioning
downward as in waving.
Do not snap fingers
Do not put feet on a desk or coffee table. It is rude to show the soles of the
shoes
Whistling is considered rude
Use both hands when handing someone an object, such as a teacup, a gift, or a
business card

Contd.

Western gestures that confuse:

Shrugging shoulders
Winking
The OK sign (Be cautions when using gestures they dont
always translate across cultures)
Mutually-understood gestures:
Nodding the head up and down for agreement, side to side for
disagreement
Thumbs up indicating approval
The smile
Laughter. However, a note of caution: Although laughter is the
response to something humorous, it can also mean someone is
uncomfortable or in a situation where they do not know how to
respond. Consider the situation

Contd.

Chinese customs that are confusing to Westerners:

Waving the hand in front of the face to indicate no
Pointing to the nose to indicate oneself, rather than to the chest
Girls covering ones face and giggling to show embarrassment.

Chinese customs that are annoying to Westerners:

Belching or spitting on the street
Lack of consideration when smoking and failure to ask permission to smoke
Staring at foreigners, particularly in remote areas
Slurping food or making noises while eating
Talking while eating
Eating in public places that are not designated for food
Pushing in crowded areas such as railway stations or bus stop

Guests

Protocol begins when guests arrive. It is appropriate to

greet guests and escort them to the meeting room
It is important to have the right attendees for meetings,
thus the Chinese desire to have guest lists, detailed
information and meeting purpose clearly defined in
advance
Be sure the highest-ranking person enters the meeting
room first, followed by the next ranking official and so on.
Otherwise the Chinese may mistake the person entering
first as the leader of the delegation. The only exception
would be interpreters who need to stay with the leader of
the group

Seating
After everyone shakes hands, guests are seated
The more formal the meeting, the more rigid the protocol
Guests are seated in descending rank with the interpreters
seated behind
The guest of honour and other VIPs are escorted to the
seats of honour
In rooms with seating around the perimeter, the honoured
guest is seated to the right of the host (on a sofa or chairs
at the end of the room). Remaining guests are left to seat
themselves. After all the guests have been seated, the
remaining Chinese in the group will seat themselves
When seated around large conference tables, the honoured
guest will be seated directly across from the host

Gifts

Suggested Gifts
Gifts should reflect the giver and the recipient
Consider gifts from your country, state or region
Small items such as key chains, scarves, golf balls, or
calendars with a company/organization logo are a good
thing to take along
Gifts with a company/organization logo are also of
interest providing they do not include things that are
considered taboo
Other possibilities include: desk accessories, framed art,
particularly if it is from your own area, and books.

Contd..
Gift Taboos
Be sure not to give in denominations of four. Four is a very
unlucky number and signifies death
Any gift which carries an association of death or funerals such
as clocks, cut flowers, white or black objects
Do not give scissors or anything sharp as it symbolizes severing
relations
Be cautious when giving food itemsit can suggest poverty
Always wrap gifts, but do not use white or black paperit
symbolizes death
Red and gold are the best. Avoid elaborately wrapping gifts
Never write anything in red ink
Never give a man a green hat.

Chinese Business Practices

Chinese Business Practices

Problem Solving
Motivating People
Appraising Performance
Performance Expectations
Negotiating
Decision Making Process
Participation in Meetings
Superior/Subordinate Relationships
Hiring/Dismissal
Customer Relations