Business Etiquette in Beijing

Patience is key when it comes to doing business in China. To many foreign businesspeople, the protracted pleasantries at the beginning of each meeting, the drawn-out negotiations where each minor point is discussed at length and the seeming reluctance to close the deal can be very frustrating. The only way to deal with this is to allow plenty of time for discussion and negotiations and ensure that every important condition is included in the contract.

Chinese businesspeople are very formal and a smart, sober suit is a must, as is the all-important exchanging of business cards. When giving and receiving business cards it is essential to use both hands. Cards should be printed in English on one side and Chinese on the other. The person who extended the invitation should pay the bill for business meals. When visiting a business associate’s house, a modest gift such as chocolates or any kind of flowers, is appropriate; visitors should avoid giving expensive gifts and giving money is considered an insult. Business hours are usually Monday-Friday 0800-1700, with one or two hours for lunch. Businesspeople visiting Beijing will find the monthly magazine Beijing Review (website: www.bjreview.com.cn) of interest.

Business Etiquette in Shanghai

Doing business in Shanghai, at least on the formal level, requires considerable patience and persistence. An understanding of Chinese culture, such as a respect for hierarchies and an understanding of how complex relationships underpin domestic supplier relationships, may help nurture long-term business relations. Unflappable good and cheerful manners help save face for business clients, and public displays of anger must be avoided. Nevertheless, protracted negotiations can often be wound up neatly during a business banquet or an after-hours karaoke session – these are the settings where China’s legendary guanxi (connections) are exercised. If you are comfortable drinking in this environment, then it can be fun and help cement relations. Proposing a toast to your hosts, and thanking them for their hospitality will score points. On an overseas trip where you may be jet-lagged and outside your comfort zone drinking may not be high on the agenda but fear not, a polite refusal will not cause offence.

Corporate business may be formal, with executives wearing suits and exchanging business cards (given with both hands), bows and handshakes. Business with manufacturers and agents on the other hand will tend to be relaxed with informal dress code being the norm. Gifts may help open initial contacts in a formal environment (again not in a manufacturing environment), although these should never be open to misinterpretation as bribes. In some companies, the business owner may preside at the first sessions, then leave the real business to the operational management. It’s possible that in some larger and older companies, a party appointee, who has an honorary or nominal senior post in the company, may even play this role. Business hours are usually 0800-1700 weekdays, with one or two hours for lunch, but people will tend to be totally flexible and accommodating with overseas visitors. Nearly all companies will arrange pick ups from hotels and airports. Expect to do business any day of the week, even Saturdays.

Seniors are usually granted respect, at least to their faces. Likewise, political change may have emancipated women in China before the law, but in business circles men still take precedence. Businesswomen are expected to dress and behave soberly, while businessmen in Shanghai should be prepared for evenings in hostess bars with clients and associates. Foreigners are usually treated with cautious respect, although mainland Chinese have a strong pride in their own language and traditions.

Public manners in eating and drinking can seem hugely lax to foreigners – Shanghainese spit, belch and pick their teeth quite openly. Food can be daunting at times but, contrary to perception, the ingredients are likely to be fresh and in Shanghai you are not likely to expose yourself to anything serious.

For corporate travellers, Shanghai Business Review (www.sbr.net.cn) provides a monthly source of business information, features, interviews, events and news.