Chinese Culture

Business Culture

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Meetings

  • Although Chinese people themselves may be late, make sure that you are punctual. If you are late, be sure to offer an apology for your tardiness. Allow a 10-minute interval for others to arrive.
  • In China, people enter a meeting in order of importance, the highest-ranking person arriving first, and so on. The same goes for introductions.
  • Chinese colleagues may applaud when you are introduced as a way of greeting you and showing approval. If so, it is appropriate to applaud back.
  • You are expected to greet everyone in the room individually, even if the group is large.
  • Allow a few moments of social conversation to pass before mentioning business.
  • Traditionally, the host will give a quick speech greeting everyone before discussing the topic of business.
  • Be sure to emphasise the status, size, reputation and wealth of your company.
  • When it’s your turn to speak, begin by providing in-depth information about your company, its history, the context of the negotiations and all of the corresponding details. If you do not, expect to be asked many questions until you’ve covered all of this information.
  • Business cards in China are also called ‘name cards’.
  • Receiving Business Cards: Chinese culture interprets the attention and respect you show someone's business card to be indicative of the respect you will show the individual in business. Either use both hands or the right hand alone to receive a business card. Do not put the card away immediately, but regard it carefully and place it before you on the table until everyone is seated. Do not put it in the back pocket of your pants as this could be interpreted as you sitting on their face. Similarly, do not write on a card unless directed to do so.
  • Presenting Business Cards: Either use both hands or the right hand alone when giving a business card and ensure that the writing is facing the other person. Do not deal out your cards as if you were playing a game of cards, as this risks being interpreted as rude.


Negotiation Style: Relationship-Oriented

The Chinese term for negotiation, tan pan, combines two characters that mean ‘to discuss’ and ‘to judge’. From a Chinese point of view, negotiations are mechanisms for building trust and harmony so that both parties can work towards reciprocal benefit. In Chinese business culture, negotiation depends on creating long-term relationships. For example, final negotiations and deals are frequently reached outside of meetings in casual settings, such as restaurants and bars.

 

For many Chinese, this interpersonal style of negotiating is preferred over contract-based negotiations. They prefer to cultivate partnerships that will last as opposed to making timely and efficient negotiations. For example, they favour continuing correspondence over time and sending gifts and seasonal greeting cards to maintain relationships. As a part of this long-term approach in business relationships, they generally want to know a great deal about their partners to build the trust and loyalty needed to support business in the future. You may consider many of the details and questions asked to be unrelated to the point at hand, but try to be patient and provide answers for the sake of the business relationship.


Reciprocity

Business in China largely operates on the reciprocity of favours. Once a good business relationship is established, it is likely the Chinese will voluntarily do something for you with the assumption that you will return the favour later.


The idea of reciprocity is interconnected with guanxi: relationships that may also result in the exchange of connections or favours that benefit both people. Guanxi often refers to ‘networking’, which is reflected in the Chinese saying, “nei wai you bie” (“insiders are different from outsiders”). Mutual trust is essential to guanxi. In turn, many Chinese will prioritise relationship building, particularly in a business context.


The principle of guanxi commits friends, family and, at times, business colleagues to assist one another. Guanxi plays a large role in business interactions and relations. Good guanxi can sometimes be necessary to creating opportunities that otherwise would not be accessible. Guanxi can manifest in nepotism, whereby a family members or friends may be hired for jobs. In Chinese business culture, nepotism is common and is considered to guarantee employee trust and security.

 

Gift Giving

The Chinese like to give many gifts in business, as this can signify gratitude and appreciation, and sometimes a request for a favour. When choosing a gift, keep in mind that it is a professional gesture, and therefore the gift should not be a personal object. If you are at a loss for what gift to give, you can invite your business partner for a drink or to dinner (unless it is a member of the opposite gender, in which case the intention may be misinterpreted).

 

In companies with many employees, it is best to give gifts of equal value to all individuals and a more valuable one to the senior staff member (or only give gifts to the senior persons). Do not give gifts that are difficult to reciprocate or match, as this will cause the Chinese recipient to lose face. Giving expensive gifts to a business partner can also be interpreted as bribery and therefore may not be accepted.

 

Business Communication

  • The Chinese often nod while a person speaks. This does not necessarily indicate agreement, but rather suggests that the listener understands what the speaker is saying.
  • For the sake of saving face, the Chinese will seldom give a flat negative response to proposals made, even when they do not agree with it. Therefore, focus on hints of hesitation. Listen closely to what they say, but also pay careful attention to what they don’t say and double-check your understanding.
  • It is considered rude to interrupt, so refrain from doing so. Furthermore, if the natural conversation dynamic between you and your colleagues is to talk over one another, a Chinese person will not interrupt you to make their point heard. Therefore, try to slow down and pause between your points to give them an opportunity to speak.
  • Do not immediately reject a proposal from a Chinese person or company. When you reject someone's idea, there is a risk of this being interpreted as you rejecting the person. Similarly, lead into criticism gradually rather than doing so bluntly.
  • Never write something in red ink. Writing in red indicates that you are someone’s blood enemy.
  • To avoid confusion with your Chinese business counterpart regarding dates, write out the month in letters. If you do write a date in numbers, list the year first, followed by the month then the day. For example, 2017.09.30
  • The number 8 is considered the luckiest number while the number 4 is considered unlucky.

 

Considerations

  • Workplaces in China are definitively hierarchical based on age and position, and everyone has a distinct place and role within their company. Women are usually given respect in accord with their role and rank within the company hierarchy.
  • Women are usually given respect in accord with their role and rank within the company hierarchy.
  • In recent years, organising or attending private banquets between companies has been forbidden by the Chinese government. Therefore, a Chinese business associate may turn down a dinner invitation out of professionalism instead of personal reasons. 
  • On the Corruption Perception Index (2017), China ranks 77th out of 180 countries, receiving a score of 41 (on a scale from 0 to 100). This perception suggests that the country’s public sector is somewhat corrupt.
China
  • Population
    1,373,541,278
    [July 2016 est.]
  • Languages
    Mandarin (official)
    Cantonese
    Shanghainese
    Plus other dialects
  • Religions
    No Religion (52.5%)
    Folk Religion (21.9%)
    Buddhism (18.2%)
    Christianity (5.1%)
    Islam (1.8%)
    [2010 est.]
    Note: China is officially atheist.
  • Ethnicities
    Han Chinese (91.6%)
    Zhuang (1.3%)
    Other (7.1%)
    [2010 est.]
    Note: The Chinese Government officially recognises 56 ethnic groups including Hui, Manchu, Uighur, Miao, Yi, Tujia, Tibetan, Mongol, Dong, Buyei, Yao, Bai, Korean, Hani, Li, Kazakh, Dai and other nationalities.
  • Cultural Dimensions
    Power Distance 80
    Individualism 20
    Masculinity 66
    Uncertainty Avoidance 30
    Long Term Orientation 87
    Indulgence 24
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  • Australians with Chinese Ancestry
    1,213,903 [2016 census]
Chinese in Australia
  • Population
    509,555
    [2016 census]
    This figure refers to the number of Australian residents that were born in China, excluding Hong Kong and Taiwan
  • Average Age
    35
  • Gender
    Male (44.4%)
    Female (55.6%)
  • Religion
    No Religion (63.2%)
    Buddhism (16.2%)
    Catholic Christianity (3.4%)
    Other (11.4%)
  • Ancestry
    Chinese (94.1%)
    English (1.8%)
    Russian (1.4%)
  • Language Spoken at Home
    Mandarin (65.3%)
    Cantonese (22.5%)
    Samoan (2.5%)
    Chinese (6.0%)
    Of those who speak a language other than English at home, 49.4% speak English fluently.
  • Diaspora
    New South Wales (48.9%)
    Victoria (29.4%)
    Queensland (8.5%)
    Western Australia (5.2%)
  • Arrival to Australia
    Prior to 2001 (38.2%)
    2001-2006 (23.7%)
    2007-2011 (33.7%)
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