Business practices in China – Santandertrade.com

Business meetings are often long and will be needed several times to establish a sustainable relationship. It is advised to have recourse to interpretation services to avoid the language barrier. During discussions, it is common to have small talk to break the ice.

Most of the time, Chinese are indirect communicators. Disagreement will not be clearly expressed. Phrases such as ‘Yes but it might be difficult’ and ‘Yes, probably’ are preferred. To deliver bad news while preserving a good relationship, it is common to use an intermediary who can soften the blow. Periods of silence are an integral part of the reflection and should not be interrupted.  It is highly recommended not to interrupt the speaker.

Chinese use a very limited amount of body language. The first person of your team to enter in the room must be the highest-ranked and will seat at the place of honour directly in front of the host. He/she will handle negotiations with the Chinese team leader. The rest of the team will support the leader if asked for it. Bargaining is an integral part of Chinese culture, and one should avoid accepting a proposition without bargaining, as it can be viewed as a sign of weakness. During negotiations, do not use psychological pressure tactics, as you could be seen as a manipulator. Only a person of a higher rank will speak, so make sure to appoint a superior of your group. Keep in mind that the objective is to determine if it is possible to establish a harmonious relationship to make a deal.

 It is common that you are offered food and drinks during a meeting. Business meals are an important part of business relations and people must sit down and eat in order of importance. Do not finish all your food because your Chinese partners will think you are still hungry. If you invite someone to an activity or have a meal, you are expected to pay for it. However, try not to show your money in front of your guests.