An Analysis of Chinese Business Culture

An Analysis of China’s Business Culture

Keenan Gary Michael Kozmech

SAIT School of Business

Table of Contents

Introduction1

Greetings2

Showing Respect3

Giving Gifts4

Lunch/Dinner5

Negotiating/Finalizing Deals6

Recommendation’s7

Summary8

An Analysis of China’s Business Culture

Introduction

This report will talk about issues that may arise when conducting business with Chinese partners. A few examples are: formal greetings, showing respect and negotiating deals.

Greetings

Formal greetings are similar in China as in western nations. Make sure to use the colleagues formal title such as “Chairman” or “Director”.

Showing Respect

Giving face or Gei Mianzi also known as due respect is very important part of etiquette in China ( The Canadian Trade Commisioner Service, n.d.). When greeting it is most appropriate to greet the most senior person first and move along to the more junior. With seating arrangements, the highest ranking person will be sitting at the head of the table.

Giving Gifts

Gifts are much appreciated in Chinese culture. When giving gifts it is most appropriate to for the leader of the companies’ delegation to give the gifts to the leader of the Chinese delegation ( The Canadian Trade Commisioner Service, n.d.). Rank and seniority are still important here so the company should make sure to buy better gifts for the more senior management. Do not give too expensive gifts, instead small art pieces or books native to Canada are best. Some gifts that are not recommended are items such as clocks, scissors, knives or letter openers ( The Canadian Trade Commisioner Service, n.d.). Don’t wrap the gift in white or black which is associated with funerals. Instead wrap the gift in red, gold or blue which is well received ( The Canadian Trade Commisioner Service, n.d.).

Lunch/Dinner

In China it is almost a guarantee that you will be going out to eat. In fact, it is a strong part of their culture to eat before any business can be done (www.chinese-culture.net, n.d.). It is noteworthy that whomever is hosting should be picking up all of the bills. In China it is seen as rude not to join in on drinking alcohol but they will respect if you are a non-alcoholic. Most often this is a social dining event in a formal context, it is not yet time to begin negotiating or overcoming challenges. Instead it is a time to build a personal relationship with the colleague which is a large part of the Chinese business culture and will help the company later on the road when it is time to finalize deals.