7 Tips for Doing Business in China

Those doing business in China must remember that the country is steeped in strict cultural and social traditions, so we've compiled some tips on what you really need to know to succeed.

First Names Last
The Chinese typically write their family names first, followed by their given names. Do not call your Chinese counterparts by their given names, which are reserved for family and very close friends. Address your Chinese business partners by their job titles, followed by their family name. For example, Wang Diyeng, COO at Bosera Fund Management, should be referred to as COO Wang.

Be Patient, Always
Rapid decision making is a way of life in corporate America. Not so in China, where a hasty decision is seen as an insult or a sign of idiocy. Decisions that may take a Western manager only a few minutes to make are carefully mulled over in China. Be prepared for negotiations to be very lengthy.

When ‘Maybe’ Means ‘No’
For the Chinese, saying “No” to you will cause you embarrassment and make you lose face. Instead they’ll say: “I’ll look into that,” “I’ll think about it” or “Perhaps” — which usually mean “No.” Likewise, if your Chinese counterpart smiles and says, “The problem isn’t serious,” it usually means, “There are still problems.”

Bring Order to Business Meetings
Ahead of a meeting, present your Chinese counterparts with a list of people from your company who will attend, including their ranks. People are expected to enter a meeting room in hierarchical order. If you enter first, they will assume you are the team leader. Teams sit across a table from each other, in descending order of importance.

Play All Your Cards
Bring a plentiful supply of business cards. One side should be in English, the other in Chinese, preferably in the local dialect. If your company is the largest in your country or has another prestigious distinction, state this on your card. Print your cards preferably in gold ink, the color of prestige and prosperity. Present your card with two hands, making sure the Chinese side faces the recipient. When you are handed a card, examine it carefully for a few seconds, then place it carefully in your card holder or on the table. Do not just take it and stuff it in your pocket.

Don’t Boast About Your Accomplishments
In China humility is key. Boasting is considered impolite and is viewed with suspicion by the Chinese, who may decide to investigate the claims.

Bring Gifts
Gifts are important -- but expensive gifts can cause social awkwardness. Wrap gifts in gold, red (a sign of good luck in China), yellow or pink. Do not wrap gifts in white or black; these are the colors of mourning. Bring extra gifts, so that you can reciprocate in case you are given one. Appropriate gifts include company gear with logos and items from your city. Inappropriate gifts include a clock (it symbolizes impending death) and white flowers (reserved for mourning). Accept a gift with two hands but do not open the gift in front of the gift-giver. Note: A Chinese person may refuse a gift three times out of politeness before accepting it.

Melanie Rodier has worked as a print and broadcast journalist for over 10 years, covering business and finance, general news, and film trade news. Prior to joining Wall Street & Technology in April 2007, Melanie lived in Paris, where she worked for the International Herald ... View Full Bio