Connect with us
Wise usd campaign
ADVERTISEMENT

Business

Business Culture in China

Published

on

Chinese business culture and etiquette

The Chinese business practice is vastly different from the Western method that most of us may be used to. Of course, with the Chinese economy opening up,  China’s  joining of WTO and the Olympics in 2008, many Chinese  business  practice are now beginning to align with more conventional methods.

However,  China  will always have their own unique  business  culture and etiquette, given their unique history and background.

“I was recently involved in a business meeting that went sour and threatened to scuttle a good deal. What happened was that the Chinese party receiving the American purchaser was late in reaching his hotel. The American was furious as he had a tight schedule and that they were late and threatened to withdraw his purchase.

The Chinese party was late because they were given a vague address of a lake-side hotel. You see, what happened was that the American gave his hotel as Lakeside hotel. Unfortunately, there were numerous hotels along the lake but the Chinese were too shy to enquire which lakeside hotel earlier because they were afraid the American would ‘lose face’ for having given a vague address. Instead, they spent the morning hopping from one lakeside hotel to another looking for this American gentleman.”

A simple cultural difference threatened to scuttle a perfectly good working relationship. To avoid similar cultural disasters, here are some tips on how you can conduct a more successful  business  in  China .

The initial approach

Chinese business are mostly referrals; essentially a business relationship is struck based on another business associate recommendation. The best prices and deals often comes from a strong recommendation.

However, it is common today for cold calls and direct contacts, given the availability of the internet and the competitive nature of Chinese businesses. You may source from the internet, trade fairs, catalogues and brochures, advertisements and approach the Chinese companies directly through a call or email.

Alternatively, if you are seeking to invest in a factory in  China , you can approach a investment committee or a  business  advisory directly. They will be able to advise you on your best location based on your industry, raw material and manpower needs. Please contact us directly if you have such a need and we’ll be glad to advise accordingly.

Relationship

Chinese business relationship inevitably becomes a social relationship after a while. Unlike Western business relationship which remains professional and perhaps, aloof, even after a long time, Chinese business relationship becomes a social one.

The more you share your personal life, including family, hobbies, political views, aspirations, the closer you are in your business relationship. Sometimes, a lot of time is spent discussing matters outside of business, but then a lot of time, the other party is also making up his mind about your deal based on how much he sees your personal relationship with him.

Seniority

Seniority is very important to the Chinese especially if you are dealing with a State owned or government body. Instead of addressing the other party as Mr or Mrs so and so, it is always appropriate to address the other party by his designation ie Chairman So and So, Director So and So or Manager So and So.

When giving out namecards or brochures, make sure you start with the most senior person before moving down the line. When giving out a namecard or receiving one, ensure that you are stretching out with both hands with the card. Remember to face the card you are giving out in a manner such that the receiving party gets it facing him correctly.

Giving Face

Giving face (aka giving due respect) is a very important concept in  China . You must give the appropriate respect according to rank and seniority. For example, if you are buying gifts for an initial contact, make sure you buy better gifts for the senior managers instead of buying similar gifts across the board.

Similarly, sitting positions in a meeting room or a dining table is accorded accordingly to rank, importance and seniority. It is good to seek advice before embarking on your first meeting with Chinese business contacts to avoid making the wrong move.

Gifts and Presents

Unlike earlier days when  China  was very poor, gifts, especially of Western origin was especially appreciated. Today,  China  produces and imports almost anything imaginable and gifts are no longer a novelty.

However, gifts are always appreciated and especially in the smaller cities or towns, will continue to play an important part in your business relationship. Do note that if you are indeed giving gifts, make sure the senior people get a better gift or at least gifts perceived to have a higher value than their junior staff.

Similarly, expect to receive gifts from the Chinese, especially Chinese art products. It is polite not to refuse, especially if it is not of too high a monetary value.

Lunch/Dinner

There is no  business  talk in  China  without at least one trip to a restaurant. Sometimes, a trip is made to the restaurant even before any business discussion take place! Inevitably, the restaurant will always be a grand one and you are likely to be hosted in a private room.

There is an elaborate seating arrangement for a Chinese business meal. There are fixed seating positions for the host and the guest and then they are seated again according to seniority. This is a very important aspect of a formal dinner and it is important that you follow the rules accordingly. However, it seems that the Northern Chinese are very particular to this formal seating arrangement while the Southern Chinese has loosen the formalities somewhat.

You may like to find out more this interesting  China  Book.

Drinking with the Chinese

The Chinese are big drinkers especially in Northern and Western  China . It does not matter if it is lunch or dinner; as long as a meal is being hosted, there will be alcohol.

Chinese wine is the favourite, followed by red wine and beer. Chinese wine is more like fuel than liquor, having a alcohol concentration as high as 60%! No matter how good a drinker you may think of yourself, never, ever challenge a Chinese into a drinking contest. They will win, hands down!

It is often seen as rude not to drink with the Chinese in a formal dinner. To maintain your sanity, either claim to be a non alcoholic or plead medical grounds as an excuse. This will let you off the hook with little or minimal drinks. Better yet, bring a partner who can drink on your behalf!

After Dinner Entertainment

Formal business dinner normally drags for quite sometime as there will be much social talk, some karoake, and drinking contests. Most of the time, everyone is too drunk to indulge in further entertainment after a dinner. In addition, if you are just new to this partnership, you are unlikely to be invited to further after dinner entertainment.

However, once you are familiar with them, you may be invited to a Karaoke, or a Night Club, or a Suana. Do note that if they are the host for the night, all bills will be picked up by them for the night, including all entertainment. It is impolite to fight for the bill or worst, split the bills.

Similarly, if you are the host for the night, you are expected to pick up all bills for the night.

Controversial Issues

There are some taboo areas in social conversations with the Chinese. Try to avoid these conversational topics as much as possible. I have seen many nasty arguments as a result of these topics:

1. You must not mention that Taiwan is an independent state or a country.

2. You must NEVER praise the Japanese or be seen to be good buddies with them

3. You can condemn Mao Tse Tung but avoid critising Deng Hsiao Ping

4. You must not praise Shanghai in front of natives of Beijing and similarly vice versa

Other than that, you are pretty safe to converse with the Chinese anything under the sun!

Source by Ken Cheong

Continue Reading

Business

BRICS: China Classifies Crypto as Property and Prohibits Business Ownership

Published

on

XRP

China’s Shanghai court ruled cryptocurrencies are property, boosting optimism in the crypto industry while maintaining a ban on business transactions. This may signal a shift in future regulations.


China’s Ruling on Cryptocurrency

In a pivotal decision for the nation and its BRICS alliance, China has officially classified cryptocurrency as property while maintaining prohibitions against business transactions involving digital assets. A notable ruling from the Shanghai Songjiant People’s Court affirmed cryptocurrencies as property, sparking optimism within the crypto industry regarding future regulations.

Implications for the Crypto Industry

As cryptocurrencies gain significance globally, the Chinese ruling is viewed as a potential-positive shift amidst ongoing restrictions. While individuals can hold virtual currency, businesses remain barred from engaging in investment transactions or issuing tokens independently. This decision has generated anticipation for more accommodating regulations in the future.

Future Prospects for Cryptocurrency in China

Experts like Max Keiser believe this ruling indicates China’s growing acknowledgment of Bitcoin’s influence. As BRICS nations explore increased cryptocurrency utilization in trade, this legal shift could enhance market demand and lead to greater acceptance of cryptocurrencies as a legitimate asset class, setting the stage for potential developments in 2025.

Source : BRICS: China Rules Crypto as Property, Bars Business Holdings

Continue Reading

Business

Wegovy: The Popular Weight-Loss Drug Now Available in China

Published

on

Novo Nordisk launched Wegovy in China after approval, competing with Eli Lilly’s upcoming weight-loss drug. The treatment, costing 1,400 yuan, targets obesity but has potential side effects and isn’t covered by healthcare.


Wegovy Launch in China

Novo Nordisk recently launched its weight-loss drug, Wegovy, in China after obtaining approval from local health authorities in June. The introduction of Wegovy is expected to increase competition with Eli Lilly, which has also received approval for its weight-loss treatment, although it has not yet been released in China’s significant pharmaceutical market.

Cost and Accessibility

In China, a set of four Wegovy injections will be priced at 1,400 yuan (approximately $194), significantly lower than the drug’s U.S. price. However, patients will need to pay the full amount out of pocket since Wegovy is not yet covered by the national healthcare insurance plan.

Benefits and Side Effects

Research indicates that Wegovy can help users lose over 10% of their body weight. The drug contains semaglutide, which assists with appetite control and satiety. While Wegovy has been gaining traction globally, it may cause side effects like nausea. Concerns have emerged about its misuse among individuals who are not obese, prompting medical professionals to remain vigilant.

Source : Popular weight-loss drug Wegovy goes on sale in China

Continue Reading

Business

China’s Golden Rooster Film Festival Kicks Off in Xiamen – Thailand Business News

Published

on

The 2024 China Golden Rooster Hundred Flowers Film Festival opens

The 2024 China Golden Rooster and Hundred Flowers Film Festival began in Xiamen on Nov 13, featuring awards, cultural projects worth 31.63 billion yuan, and fostering international film collaborations.


2024 China Golden Rooster and Hundred Flowers Film Festival Opens

The 2024 China Golden Rooster and Hundred Flowers Film Festival commenced in Xiamen, Fujian province, on November 13. This prestigious event showcases the top film awards in China and spans four days, concluding with the China Golden Rooster Awards ceremony on November 16.

The festival features various film exhibitions, including the Golden Rooster Mainland Film Section and the Golden Rooster International Film Section. These showcases aim to highlight the achievements of Chinese-language films and foster global cultural exchanges within the film industry.

On the festival’s opening day, a significant milestone was reached with the signing of 175 cultural and film projects, valued at 31.63 billion yuan ($4.36 billion). Additionally, the International Film and Television Copyright Service Platform was launched, furthering the globalization of Chinese film and television properties.

Source : China’s Golden Rooster film festival opens in Xiamen – Thailand Business News

Continue Reading