China has changed enormously over the last 20 years. Its
economy has been growing at 10% a year, and it's on track to be
the world’s largest economy soon. Today, 80% of the world’s electronic
goods are made in China. As a result, more and more western companies
want to do business in China. But how easy is it for a westerner to do business
there? Here are some tips from the British Embassy in Beijing.
Take your time. In the west, business is ruled by
deadlines. Chinese business people seem to act slowly by western
standards, so be prepared to wait for decisions.
Build relationships. In the west, it's usual to do
business first, and then see if a relationship is possible. In China, it's the
opposite. You need to build a relationship before you can do business. This
leads to the idea of ‘guanxi’. Guanxi means using personal contacts and
relationships to do business, and westerners need to understand how real and
strong this is in China.
It can also be useful to find a reliable
Chinese ally to work with you. He or she will be able to help with
language or cultural problems and will also be able to understand Chinese
body language. Remember too that a visit by a westerner is often seen as
a great honour by Chinese companies.
You must remember to respect ‘face’. Face means having
high status with your peers. Face can be lost, given or earned.
Never criticize or insult someone in front of others, as losing
face will make it impossible to make a deal. On the other hand, if you
praise someone by saying good things about him or her, then he or she will gain
face, but be careful not to do it too much.
Accept the pecking order. Hierarchy is very
important in China, and the group is more important than the individual. In
business, Chinese people often don't like taking responsibility
individually and may also not like giving opinions in front of peers, in
case they lose face.
All these tricks of the trade can help you to play
the game and do business successfully in China. Be prepared, and be patient
if you want to be a winner in China.
make a
deal
