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10 Quick Tips About Doing Business In China

"China. An uncharted frontier for most companies. A land so different and foreign to ourways, that it's almost unthinkable that we could be doing business in China."

Unbelievably this attitude prevails to this day, and it's no surprise, as China is unlike any other country that you'relikely to wish to market in.

But does doing business in China have to be so hard? Is China really the fierce frontier that it seems?

The answer is "no," BUT it is different enough to what you've been used to to catch you out if you're not ready.Keep reading, and I'll take you through 10 quick tips to help you get better business results in China.

Don't Fear The Great Wall Of China

Fear of the unknown, and some common misconceptions, can stop many companies from taking the plunge intoChina, and benefiting from its booming economy. This is China's modern 'Great Wall.'

If that's not you, then credit to you for wanting to get into the China market; but it's a mistake to go thereunprepared. Many business-people don't even know what they should be preparing before heading over, sowe've prepared 10 quick tips to get you started!

1. Build Guanxi (关系关系)

How to describe this important Chinese cultural phenomenon? Guanxi, is essentially, "Who you know." Yourpersonal relationships with others are crucial to doing business in China. You'll earn Guanxi by treating otherswith respect, doing favours, and building a good business relationship with your Chinese contacts. Better Guanxiwill open more doors for you in future.

2. Expect Getting A Deal To Take A Long Time

It may take many long meetings for you to start making progress and finally sign contracts. This process mayseem to, or even be, inefficient, however it's part-and-parcel of doing business with the Chinese. Be patient, andyou will reap the rewards of it.

Meetings are highly organised, and usually adhere to a set of 'rules.' It will help you to be acquainted with howmeetings work in China, then you will understand what is happening when, and who should be doing or sayingwhat.

3. Do Your Homework In Advance

Doubtless when you're in China you'll be having business meetings. Help the Chinese to see that you are indeedvery serious about doing business with them by being well-informed.

Do you know any specifics about their company, products, or industry?

If you're able to speak about these, then this will gain you the respect of the room.

4. Prepare For Chinese Small Talk

The Chinese will naturally be very interested in your country, family, and life. Foreigners are often an object ofcuriosity for the locals, as there are still relatively few in China at present.

It's not unheard of to be asked personal questions, such as your salary. The best way to avoid any embarrassmentis to steer the conversation towards more comfortable topics, such as your hometown, your family, and lesspersonal things.

Switch it back to them, and ask about their families. This, especially, will go down well, as Chinese people lovefamilies.

5. Network First, Do Business Later

We may be used to 'getting down to business,' however in China this is often last on the list! It will be common foryou to be treated to dinners, drinking, massages, and sight-seeing before you actually do business.

It's important to enjoy these activities, and to take part in them as you would any social occasion. This will help tobuild Guanxi, and will give the Chinese a good impression of you as being someone who is receptive to them, anda nice person to be around.

At this point it would be a good idea to 'befriend' your counterparts, and show some reciprocal interest in theirlives. This will help you to gain trust, which can be hard in China .

6. Learn A Little Chinese

The Chinese language is one of the most misunderstood, and maligned, elements of doing business in China.Most foreigners dismiss it as being, "Very difficult, and impossible to learn."

However, you'd be surprised that just by learning a few words and phrases, you can delight your local contacts,who will be pleased that you have made an effort. They too think that foreigners find Chinese too difficult to learn,and so if you surprise them, then you differentiate yourself from other foreign business people.

7. Be Nice About China

Many Chinese people are fiercely patriotic, and will have a very hard time dealing with any kind of negative remarkabout China, its people, food, government, or anything else related to the country.

Whilst they may not say anything, upsetting them may make it harder to do business.

Of course, you're not going to insult China directly, however, even an off-the-cuff humorous remark could still get abad reaction.

8. Give A Few Gifts

A good idea to pave the way to better business dealings would be to give small gifts.

Again this provides you with Guanxi, and you may even get some gifts in return!

Options could be:

9. Be Sure That Everything In Negotiations Is Crystal Clear

Don't speak in very complex language unless you have a translator, or 100% sure that your counterparts definitelyunderstand. A misunderstanding could cause problems down the line, so consider:

Speaking in short bursts

Listening more than you would at home, and speak less

Avoiding slang

Not being humorous

As well as tailoring your English to be as understandable as possible, you should keep clear, concise notes, andshare these with your counterparts. These act as your record, and will also help them to clear up and address anypoints that they may have missed.

10. Be Open To New Cultures & Ideas

When in China you're literally going to be barraged with a multitude of new sights, sounds, smells, businesspractices, and beliefs. All of them will be foreign!

Some things you will love, and others you will not like at all. Either way, it's important to be totally open-minded andembrace China. Since a long-term business cooperation is always best, you'll probably be there again soon, soit's better to feel good about going!

Perhaps the way that people live, the lack of Western concept of manners, and certain areas being quite dirty willbe off-putting. However, China has lots of history, amazing sights, and delicious food. There will be at leastsomething you enjoy, so do more of that, and less of other things.

Your Turn...

These are just a few of the best tips, and there are many, many more! What would your quick tips be for those ofus wishing to do business in China? What's your interesting story or experience about your dealings in China? Letus know by leaving a comment below!

Want To Get Better Business Results In China?

Of course you do!

As I mentioned, being prepared will really help you to make more of your business trip to China, and this FREE E-Book, the "10 Step Guide To Chinese Business Etiquette," will help you to understand how the Chinese dobusiness so you have an advantage over other foreign business people heading to China for the first time!

Click below to get it for FREE:

Posted by Adrian Leighton on Mon 15 Sep, 2014

Adrian has been in China for 7 years! He is experienced in all things social media, blogging, andSEO. When not working he enjoys weight-training, reading, watching TV shows with his wife, andbaking!

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Topics: Business in China