Business Etiquette in China

Check the Chinese calendar and avoid all national holidays, especially Chinese New Year. The October 1 National Day and other smaller holidays also affect businesses.

Communicate to your hosts in advance of specific requirements such as projector and screen. They often do not have the in-house capacity to set up the technology on the spot.

Know the language capabilities of your hosts beforehand. Have your own interpretation if your hosts have little English/French capability.

Have a detailed proposition of the value of your company and product. Have Chinese-language materials to share with your hosts. Chinese businesses often meet with numerous foreign businesses seeking to establish relationships. So capture their attention at the first meeting to secure follow-up.

If not sure, go formal – it will convey respect and seriousness. There can be a suggestion for men to “go casual” in summer with polo shirts or button-down short-sleeve shirts. Shorts are definitely not appropriate.

The host will take the lead, and you will likely have a name card or designated seat based on your role in your company.

A formal meeting will start with the senior member of the hosting party introducing himself/herself and colleagues, then stating his/her position on the matter in question. The leading member of your party should then do the same. Subordinate members of the Chinese party will not usually speak unless asked to do so by the most senior person; your observance of the same protocol will have the advantage of conveying who is in authority and who may have special expertise.

Here are a few points to bear in mind when doing introductions in China.

• Address your counterparts by their titles and in order of seniority.
• Say your name clearly. State both your company and your position. Know that Chinese will refer to their company first, then their title, and then their name.
• Meetings start with handshakes. If you receive prolonged handshakes when things go well, don’t be shy about holding on.
• Hand out business cards to the most senior official first. Use both hands to give and to receive. Take a moment to look at and acknowledge the individual’s card. Have your own cards translated into Chinese on one side. Your title is important, as it determines meeting invitations, authority and seating arrangements.
• Have a Chinese name, ideally one with meaning rather than a transliteration to show respect. The best approach is to have a local contact or native speaker help create one for you. Or visit “Mandarin Tools” under “Useful Links” to create one.

Follow cues from your hosts to begin or wait to be invited. There may be cold dishes placed on the table when you are seated.

At formal banquets, serving staff may keep up a constant rotation of dishes. They may also change your plate frequently with a clean one. The meal probably will proceed with various meats and peak with a fish course, followed by a staple (rice, dumplings, noodles) and wind down with a sweet or dessert.

The Chinese tend to offer a lot of food, and it is acceptable to refuse. It’s a sign of politeness to accept and sample some of everything. But don’t eat or drink all of something you don’t like, since this means you want more! A nod to the wait staff to change your plate will allow for your preferences to be accommodated unobtrusively.

While wine can be preferred at banquets, the Chinese may offer strong distilled alcohol called baijiu for toasts. There may be many toasts during a meal. Never drink from the toasting glass except during a toast. Under normal circumstances, the Chinese will not push you to drink. Eat something before the toasts begin. If you cannot or do not drink for medical or personal reasons, this is respected but you should advise your host of this beforehand.

Your host will start off with a toast to your presence/friendship/cooperation. Typically, the principal guest is expected to toast a few courses afterwards. Your toast comments should be warm and sincere, and not longer than your host’s. When toasting, the Chinese normally say “gan bei”, which translates to “bottoms up”. Drinking is sometimes expected as proof of a close relationship where partners can reveal their true selves, although it may vary by region. When in doubt, ask your host. He or she will be very happy to explain and will be impressed by your respect for local customs. It’s also not uncommon to go around the table toasting each member of the party. Take your cue from your hosts and local contact.

The banquet is generally a social event in a formal context. Discussion will likely centre around pleasantries, background information on the region or the company, but it is not a time for negotiating or challenges. The focus may not be the food per se, but there will be pride in the offerings provided.

Certainly if you would like to host a banquet this is your prerogative, but it’s not expected in common business practice to host a banquet at the conclusion of a deal.

The host pays. If you are hosting, do not show money in front of your guests. Either have someone slip out and settle the bill or wait until your guests have left.

Formal dinners often end suddenly, when the senior member of the hosting party stands up, briefly thanks the guests for attending, and proceeds to leave. If there is a dessert/fruit course, you can expect the end to follow fairly shortly.