china law
Lehmanlaw

Conducting Business in China

Language is one of the barriers for foreigners to communicate and do business with Chinese, besides this, are there other barriers?

When doing business in China, language is not the only barrier foreigners will encounter. Even if the translation is perfect, there are still many ways for Chinese and Westerners to misunderstand each other. The cultural and conceptual barriers are such that even the simplest remark can be interpreted differently.

 

Is hierarchy very important in China? How does one decide the hierarchy when meeting with Chinese?

Yes. One of the first things that foreign nationalities should be aware of in meeting with colleagues and clients in China is that elders, even in business, are frequently given the most respect. However, the older people within the business are not necessarily the major decision makers. In fact, it is often difficult to discern initially who, among your recent acquaintances, is highest in the chain of command. Therefore, it is absolutely essential to treat everyone you come in contact with the utmost civility and respect. After a relationship has developed with your colleagues, the hierarchy will become more evident.

 

What is the pace of decision-making in China? Why is it so slow?

In China, the pace of decision-making is particularly slow. Traditionally, the country has been run on a hierarchical, bureaucratic structure, and the Chinese feel comfortable with referring decisions upwards. Chinese organisations are dominated by a few key decision-makers at the top. Often these are members of the Party's Politburo. Below these, employees are often reluctant or lack the authority to make decisions. In the past, showing initiative has proved harmful to career prospects, and the safest policy has been not to stick one's neck out. This trait was strengthened during the Cultural Revolution, when people learned that it was wisest to keep a low profile. Getting a contract signed can be a long drawn-out process, and you may have to wait a long time for a response to even the simplest request.

 

What is the current position of women in China?

Traditionally, Chinese women were expected to assume a subordinate role, but since 1949 the Communists have run campaigns pushing for equality. Nowadays, it is not unusual to find women in positions of authority, but few rise to the higher echelons of power. Only 24 percent of China's 20 million officials are women.

 

What is the usual business dress in China?

Business suits are the norm for both men and women. However, it is always wise to match what your Chinese counterparts are wearing. If they are dressed casually, you could remove your jacket and tie. Dress for women in China is becoming much less conservative; women may wear pantsuits and even skirts cut above the knee. Avoid low-cut items however. Women generally wear very little make-up in China and do not adorn themselves with a lot of jewellery. A few pieces of jewellery, particularly fine items, are acceptable.

 

When shall I present a gift to the Chinese? What kind of gift is appropriate?

In business situations, you should not give an individual a gift. A gift to "the company" is considered more appropriate. Outside of the business arena, however, gifts are welcomed, and a necessary courtesy if visiting another's home. A small flower arrangement, basket of fruit or something made in your home country is appropriate. Be careful never to give a knife (which denotes the cutting of a relationship) or a green hat (which denotes that the man wearing the hat has a wife who cheats on him).

 

What are the usual business hours in China?

Official business hours for most offices in China are 9:00 a.m. to 12 noon and 1:00 p.m. to 5:00 p.m.; however employees in state run offices interpret these loosely. Companies with foreign management have clamped down on the looser attitudes of the past where lunch hours were expanded to fit in everything from shopping to showers. Most offices are empty after 5:00 p.m