Understanding Chinese culture will help improve business relationships
With the growth of capitalism in China, many companies are now finding that they have Chinese business partners. In international business, it is not just important to know the language of those you are doing business with, but it is vital to know about their cultural and business rituals.
Nonverbal Communication
In the western word, communication is generally done orally and in a direct way. But in China, businessmen tend to be less direct in their communication of information. This is especially common when Chinese businessmen are expressing disagreement. They rarely say no, even if they mean to, and often express disagreement non-verbally.
Orientation
Western businessmen tend to be "I" oriented or to speak of their company from the perspective of their leader. Chinese businessmen focus on the team and are more "we" oriented.
Relationship
Chinese businessmen find the relationship between businessmen to be paramount in their transactions. They generally believe that a written agreement is secondary to the relationship. This encourages several business rituals, such as going out for drinks, sharing a meal and shaking hands, to strengthen a business relationship. In some cases, western businessmen will be asked to share a baijiu drink, which is 80 to 120 proof but is important in the Chinese bonding ritual.
Loyalty
The importance of relationships for Chinese business informs their tendency to remain fiercely loyal. Once a relationship has been formed, most Chinese businessmen are unlikely to break it. This makes it difficult when western companies rotate their personnel who are then faced with forming new relationships with their Chinese partners.
Food
Chinese business rituals generally involve food. While business breakfasts are not common in most Chinese provinces, a morning tea, lunch or dinner are very popular. The most popular business ritual in China however, are evening banquets, which last for two hours or more. These banquets observe strict seating etiquette and guests should arrive early or on time.
