Doing Business with China: A Primer

For the First Trip to China

By Dr. George Koo.

The purpose of this section is to provide a brief background of China to facilitate western business executives visiting the country for the first time.

Some Aspects of Chinese Culture

Generally speaking, the Chinese are quite proud of their recorded history of 4000 some years and the dominating influence that the Chinese culture has exerted on neighboring nations, such as Korea, Japan and most other countries of East Asia. A tragic downside of this attitude is that it is only during the most recent century or so that China began to realize that it can learn from other civilizations as well. From being a technological leader for centuries, China has become a laggard in the modern world.

With a population of 1.2 billion and a land mass slightly larger than continental U.S., China is in many ways quite diverse. Even though the written language is the same all over China, the spoken dialect from one locality or region may be as different as a foreign language to a neighboring region. Each region is also characterized by different traditions, cuisine, dress and even personality. Even though the population is primarily ethnic Han Chinese, there are at least fifty identifiable ethnic minorities living in China including Mongolians, Koreans, Moslems, Tibetans and others.

Food is a national obsession with the Chinese. A frequent greeting among Chinese is "Have you eaten yet?" instead of "hello." Even in China today, it would take a mighty serious event to interfere with the scheduled meal. Whether it is for business or for pleasure, the Westerner should think twice before ever suggesting skipping a meal to the colleague or friend. For this reason, one should be careful about holding a meeting or a conversation past the other person's meal time.

One of the pervasive influences of the teachings of Confucious is the respect for age. The Chinese believes the older one gets, the wiser the person becomes. In social or in business situations, in meeting a stranger for the first time, it is always correct to show deference to someone older than you. It is because of this deference that Chinese leaders do not fade away. Even after they retire and no longer hold any positions they still command a lot of power and influence.

Humility is another Confucian virtue. The more accomplished the individual, the more humble he/she is to become. That person can bask in the accolades heaped by admirers, and self promotion is not needed. The Chinese are not comfortable in the presence of braggarts. The Chinese term for bragging is cuiniu which roughly means to blow up a cow -- which end of the cow is not specified. While in China, the executive should be moderate in self praise. It would be much more effective if the executive can get a third party to describe the executive's accomplishments while he/she demurely allows that those were of little significance.

Making a presentation about the executive's company is a little different. Subtle forms of bragging are acceptable and probably expected. Don't say, "We are the best." Say instead that we have been given such and such award for highest customer satisfaction, for outstanding product quality, etc. Specifics are better than generalities, indirect better than direct, and passive voice better than proclamations.

Some Do's and Don'ts while in China

A real conversation killer is for the Westerner to launch into discussions of human rights or some other political issues. In general if you are there to learn about the market, then concentrate on asking thoughtful questions and listen and avoid or minimize the desire to pontificate.

The Westerner will frequently be in situations where spoken Chinese is flying fast and furious and the person will have not the slightest inkling of what's going on. Don't get tense or irritated and let the discomfort show and thus convey the wrong message. Learn to stay relaxed; the best way is to keep on smiling. Friendliness and sincerity can be conveyed via body language. Accept the fact that you will be excluded in many conversations. Bear in mind that English is their second language and keeping you in the conversation all the time is a real strain.

When conversing in English, learn to speak slowly and use simple sentence structure. Be sensitive that to accommodate you, the Chinese are speaking in a second language. Avoid idiomatic expressions and convoluted thoughts.

The Chinese are not touchy feelie people, especially with strangers and with the opposite sex. Casual physical contact that are not even noticed in the west could be awkward in China. Until becoming better acquainted, Westerners should keep their hands to themselves. Hugging and kissing in public is regarded as strictly a western (and barbaric) custom.

In general, the Chinese are actually more comfortable with Americans than with any other nationality. The typical American openness and casualness are very effective in breaking the ice. The Chinese also like to be warm and friendly but are just not very adept at overcoming the initial formality. They are usually charmed by the American easy going attitude.

The Chinese are more apt to be embarrassed by off-colored jokes and references with sexual connotations.

Exchange of business cards is an important ritual. When properly done, the presenter holds his/her card with both hands holding the corners and have the card facing the recipient. The recipient should respectfully accept the card and look at the card. Don't grab the card and stuff it into the shirt pocket without as much as a glance.

How to Act at Banquets

In view of the Chinese love of eating, it should not be surprising that the Chinese will use any excuse to have a banquet. There are certain rules to proper behavior at these banquets.

As a guest at dinners or banquets, do not take the initiative and just sit anywhere. Wait for the host to designate the seating arrangement. The most important guest is always seated to the right of the host. It is customary for those on the table representing the host to help the guests by continuously heaping food on the guests' plates. This is not fun for host or guest. The best way to break the ritual is, after one or two heaping plateful, for the guest to show that he/she is capable of helping him/herself and to offer to do so. If the host persists, then resign yourself to facing full plates no matter how much you eat. To avoid overeating, don't feel that you have to clean up the plate in front of you.

At most formal Chinese banquets, two and sometimes three drinking glasses are given to each guest. The large glass is for beer or soft drinks. The small glass is for Maotai or some similar white lightning, usually over 100 proof. (The middle glass is for grape based wine when offered.) For many Westerners, the strong liquor is an acquired taste. But if you like the drink, you should learn to present toasts. Chinese do not drink alone but are always toasting guests and each other. The proactive drinkers will pick up the glass and salute others as excuse to down the next glass,--which, as with the heaping plate, is immediately filled. If you are a light drinker, respond by touching the glass to the lip or sipping lightly. It is also ok to explain that you do not drink, though you will have to give up being the life of the party.

In formal banquets, the host will usually open the affair by offering a toast before starting on the food. Sometimes the first toast is consumed while standing. As guest, take the cue from the host. A course or two later, the honored guest should offer a toast in return and usually another toast thanking the host toward the end of the banquet. For non-drinking guests, it is ok to use soft drinks or beer in the toast.

In situations where the visitor feels the need to reciprocate with a return banquet, protocol should also be observed. The visitor-turned-host needs to get the guest list from the Chinese side in advance of the event and make sure that the correct ranking of the guests is understood. In case of doubt, it is better to ask one of the Chinese to make sure.

Eating at Street Stalls

Street vendors offer some of the most inexpensive but tempting foods to sample. Some caution is required. Sample only food cooked before your eyes. Bring your own eating utensils or patronize only those with disposable chopsticks and foam clamshells,--with apologies to the environmentalist, but one has to eat. Until your gut has developed resistance to the local bugs, resist the urge to do as the natives do.

How to Act at Meetings

When meeting for the first time, business cards are exchanged as described previously. Most meetings are begun with warm up conversation. Don't be in a rush to get to the heart of the matter. Let the host raise the subject first and similarly let the host take the lead during the warm up. And, of course, let the host designate the seating arrangement. An inevitable warm-up question from the host is: Have you been to China (or the name of the city you're at) before? Acceptable responses include comments on what you have found remarkable and interesting so far, what you have learned, and/or what you look forward to seeing and learning. When delivered with sufficient sincerity, the last response is an useful way of hinting to xyour host of the kinds of sightseeing activity of interest to you that the host could help arrange.

Giftgiving

When presented with a gift, do not open the gift in front of the giver unless invited to do so. Chinese do not normally open presents in front of the donor. However, some Chinese are now sufficiently xfamiliar with the western custom and may actually want you to open the present. If you know the giver very well and want to introduce him/her to the western way of showing appreciation, you should ask if it is ok to open the present.

Always be discrete and avoid effusively admiring some personal possessions that belong to your Chinese friends. Lest, your enthusiasm xis misunderstood and suddenly the object of your admiration becomes an impromptu gift to you. Though your friend means well, it could get awkward.

The Concept of Guanxi

How many times have you heard it said that "it is not what you know but who you know that counts?" Guanxi is the Chinese variation of that western saying. It is a personal relationship based on mutual trust and obligation, not unlike the Japanese notion of "giri." Guanxi leads to a sense of loyalty and willingness to render assistance and cooperation. Guanxi does not mean graft and corruption, but personal relationships do lead to personal favors. The nature of the favors can cross over into gray areas or cross the line depending on the individuals involved.

As a westerner lives in China or elsewhere in Asia and makes friends, he/she will develop his/her own guanxi. The strength of the guanxi will depend on the depth of the friendship. Contrary to a popular western misconception, guanxi is not dependent on how long one has known the other person, but is dependent on the quality of the relationship. A strong guanxi can be forged in a short time by being sincere, caring and open. Bonds of friendship with a Chinese can be more durable and meaningful than can be achieved with a western friend, though the latter is easier to establish.

Karaoke Etiquette

Karaoke is so popular in most parts of Asia that it is the dominant mode of entertainment. In China as in Hongkong, Taiwan and most parts of Asia outside of Japan, the popular form consists of a central laser disc player connected to monitors and a PA system. The laser disc provides musical accompaniment and the monitor displays the lyrics in sync with the music. While some go to the karaoke bar to dance, most go to belt out a few. The procedure consists of having the amateur performer look through the list of titles, select one, and send in the request to the deejay. When the request comes up, the requester goes up to the microphone and lets it all hang out. Some of the singers are pretty good, most are not; clearly, knowing how to sing is not a requisite.

Surprisingly, while Westerners are generally considered much less inhibited than Asians, when it comes to singing in front of a bunch of strangers, the reverse is true. Perhaps the Westerner has not yet made the transference from the shower stall to the music hall.

As a guest, you will always be invited to participate. Most karaoke collections include western songs so that not being able to sing Asian songs is not a way out. For the sake of equality and graciousness (and the novelty if you haven't done it before), you should endeavor to make a token appearance. Remember the following will help you: (1) You won't be any worse than some of them. (2) Put your mouth close to the microphone and keep in mind that the louder you sing, the harder it is to tell how awful you are. (3) Get somebody to go up and sing with you for the same reason as (2). Many come to really enjoy the experience and become karaoke fans.

Some Chinese Behavior that Westerners find Offensive (at least strange)

There will be certain behavior prevalent in China that the western visitor will have to get used to. Be mentally prepared.

Smoking. More and more Chinese have taken up the habit. They smoke everywhere, so secondary smoke is unavoidable. The only bright spot is on the airplane, which for domestic flights are all smoke free.

Queing. The Chinese are not very good at forming orderly lines. The western visitor will probably need to learn to be aggressive in such situations. Be ready to be assertive and hold your ground unless you don't mind going backwards.

Spitting. Though expressedly forbidden by regulations, many Chinese still spit in public accompanied by a loud clearing of the throat.

Panhandling. One of the obvious unfortunate by-products of the transition to a market economy is the increasing presence of aggressive panhandling. Elderly grandmas holding a young child in one arm and tugging the sleeve of the foreigner with the other is becoming an increasing occurrence near deluxe hotels in big cities.

Hawkers. Another by-product of China's move to free enterprise is the proliferation of hawkers offering all sorts of things for sale including drinks, T-shirts, handicraft items and genuine fake antiques. The density of hawkers is proportional to the popularity of the tourist attraction. The prices are usually reasonable and negotiable, if you like this sort of thing. If not, it is best to show no interest and no encouragement.

Public toilets. Another sign of a capitalist economy is the posting of attendants at public toilets to collect user's toll. So don't throw away any of the small change. Chinese do not use the sit-down potty but are used to squatting to perform the natural function. If you think you might get caught away from the comforts of your own residence, you may want to practice the squat position and make sure your hip muscles are up to the task. Always carry some small package of tissues with you. Many public toilets do not provide paper!

Image of America. Most Chinese know and understand the United States and the Americans as well as the Americans understand China and the Chinese, which is very little. So you will run into some pretty appalling situations caused by misinformation. One of the worst is the impression that if they can get to the U.S., by hook or by crook, they will be on easy street. Be ready with an answer when you are asked to help them get into an American university or to agree to filling out the financial guarantee forms required by the U.S. Immigration authorities before allowing them to come to the U.S. for further education.

If You get Homesick

In the late '70s I worked with an American "China trader" who used to combat homesickness by bringing his own cases of Mountain Dew with him to China. He didn't just drink the stuff, a high caffeine containing citrus soft drink, but even brushed his teeth with it! He claimed that when he's away from home, that's one of the items he craved the most. No more. In the modern '90s one not only can buy all kinds of soft drinks and an even more bewildering array of bottled water, but even American, Danish and Filipino beer brewed in China. (The local Chinese brews are more like the German beer, which happens to be the original recip=E9 introduced to China via Qingdao, the port seized by the Germans during the era of unequal treaties imposed on China by all the foreign imperialists, but that's another story.)

Today in China, most hotels serve a decent version of eggs and toast with a reasonable facsimile of jam--if that's what satisfies--though traditional Chinese breakfast can be a delightful experience. In many of the major cities, it is possible to buy from Pizza Hut, McDonald's and Kentucky Fried Chicken. This is in case you get really desperate and feel the need to do something you don't even do at home to overcome homesickness.

One item that will surely come in handy, as is the case in most countries outside of North America, is facial tissue paper--you know, the small packets that can be conveniently carried in one's pocket or pocketbook. This too is available for purchase in many mixed goods stores in China that cater to tourists. However, it may be handier to take some along and not get caught short in those invariably inconvenient moments. For those particularly sensitive in the sensitive parts of the anatomy, they may want to bring along large boxes to take the place of the more, ahem, abrasive, hotel-issue paper tissues.

The one truly bad news about being in China for extended periods is for those hooked on diet foods. For centuries the spectre of malnutrition and starvation hung over the general population. The Chinese used to look at the overweight person with wistful envy assuming that they were meeting a prosperous person, never with disrespect. Now, the population, especially in the urban areas, are not only well fed but are eating more nutritional meals. As they stop riding the bicycle to work, they are beginning to join the ranks of the portly. Even so, eating something not very tasty just to hold the weight down seems oxymoron to the Chinese. Therefore, while in China don't expect to find those liquid meals in a can, though the Chinese do offer a selection of "fat reduction tea." The only really viable alternative for those sensitive to weight gain while in China is to eat less.

In the early days of doing business inside China, one has to go to the booths in Dian Bao Da Lou, the telecommunications and telegraph building, in order to make international calls, either that or place the call with the hotel operator and wait for hours for the call to come through. Now it is possible to dial direct from the comforts of the hotel room. However, even though long distance calls within China is quite reasonable, the international calls are expensive. All three major long distance providers from the U.S., AT&T, MCI and Sprint, offer local access phone numbers so that it is possible to call home using the calling card. The cost will only be slightly less exorbitant than the hotel rate. Beware that if you use the phone in the hotel room to access the local access, most hotels will levy a $3-4 surcharge.

Learning the Chinese Language

Unless you have been studying Chinese for sometime, it is unlikely that you will learn enough Chinese during your stay in China to be able to write or read Chinese. It used to be important to be able to recognize and differentiate the Chinese characters for male and female to make sure you don't blunder into the wrong room in an emergency. Nowadays, more and more public facilities use the symbolic figures with trousers or skirts to different the toilets by gender, so that reading Chinese is less essential. However, speaking some Chinese would greatly enhance the pleasure of your experience in China and learning to speak should be one of the top priority tasks.

To learn to speak Chinese, you should be aware that China has many local dialects and these dialects can be so distinctive that each might as well be another foreign language. Knowing one dialect will not allow you to communicate effectively in another. This is why learning Putonghua, the national dialect spoken everywhere, is strongly recommended. Putonghua, also known as Mandarin, is almost identical to the Beijing dialect. The reason I say almost is because Beijing natives speak their own dialect with more curl of their tongue and somehow comes out with more of a musical lilt than from the rest of the Chinese. The reason the Beijing dialect is the national dialect is because Beijing has been the capital for several dynasties through the modern times. The Beijing dialect was the official court language. The goal of every scholar was to serve in the imperial court, therefore he had to learn to speak the Beijing dialect. Women and peasants with no such ambitions didn't have to and many did not. Public education in the modern era made the dialect the universal one of choice.

In some ways the Chinese language is relatively simple. It doesn't distinguish between gender, and the verb has no tenses. You tell whether the verb is in past, present or future tense simply by its context in the sentence. (In English, you would say, "I went to school yesterday." A Chinese would say, "I go to school yesterday." Because it took place yesterday, you are assumed to know that the speaker meant "went.")

On the other hand, the foreigner learning to speak Chinese is invariably befuddled by intonation. The Mandarin dialect has four tones. Depending on which tone is used, a sound could mean entirely unrelated words. For example, the sound "ma" could mean mother, horse, to be numb or to curse. (Cantonese is even worse with six tones.) Grappling with the proper intonation will be your most difficult challenge and there are no shortcuts to success. To get it right, you will have to practice and practice. Listen carefully to the TV anchors or your language teachers and then repeat until your friend or teacher tells you that you got it right.

As you are learning to speak, you will unintentionally become a source of amusement for your Chinese friends. However, don't worry, they will be supportive and never derisive. Chinese used to feel that they are at the center of the universe and only right that all barbarians should come to China to learn. The feeling that foreigners will naturally want to learn Chinese runs deep even today.

The Last Word Before You Go

Good luck and enjoy your visit to China. Remember: The secrets for a successful experience is to keep an open mind and a sense of adventure. A solid sense of humor wouldn't hurt either.

Some common phrases that can get you by for the interim, until and unless you become a serious student, are listed in next page (if a guide book is used, it will have a more complete collection):
English Pinyin Aid Remarks
hello ni hao nee how literally this means "you good"
hello on phone wei!? way!? Properly said is with a part sneer and part question intonation
OK, yes hao how now you can see how powerful this
good " "hao" coupled with a smile can be
let's do it "
no, not  bu  boo  this is opposite to hao
no good  bu hao  boo how  with a frown, this could be put a chill
don't want  on any goings on 
not OK  "
very good hen hao hun how
very bad  hen bu hao
very expensive  hen gui  hun gway  a must for commercial negotiations
thank you xie xie syeh syeh one "xie" already means thanks, repeat for emphasis, happens a lot in Chinese
good bye  zai jian  dzai jian  literally it says "again (you) see"
see you tomorrow  ming tian jian  "tomorrow see"
have you yo
don't have mei you  may yo
do you have?  you mei you?  put have and don't have together and it becomes a question, happens a lot in Chinese
excuse me?  qing wen?  ching one  literally "please ask" a preface for asking a question
excuse me!  dui bu qi!  dway boo chi  for when you step on someone's toes
please  qing  ching  to mean please sit down, please go ahead of me, please go away!
where is___?  ___zai na li  this can be crucial in spots
toilette  ce suo  tse suo  could be men's or women's room