Business Culture China

Asia Interprise Leap, Spectaris, October 15, 2007, Berlin
Business Culture China
1
Always remember:
Mostly generalisations!
and:
Chinese are also human!
2
Content:
1. Travel and general know-how
2. Intercultural differences
3. Communication
3
History
21. - 17. century BC: Xia-Dynasty
17. century - 1025 BC: Shang-Dynasty
1025 - 256 BC: Zhou-Dynasty
221 - 206 BC: Qin-Dynasty
206 BC -220 AC: Han-Dynasty
220 - 280: 3 Kingdoms
280 - 420: Jin-Dynasty
420 - 589: Northern and Southern Dynasties
589 - 618: Sui-Dynasty
618 - 907: Tang-Dynasty
907 - 960: Five Dynasties
960 - 1279: Song-Dynasty
1279 - 1368: Yuan-Dynasty (Mongol occupation)
1368-1644: Ming-Dynasty
1644-1911: Qing-Dynasty (Manchu occupation)
1911 -1949: Republic of China
since 1949 People‘s Republic of China
4
Political System
Party State
POLIT BURO CC-SECRETARIAT CENTRAL MILITA- STATE COUNCIL PRESIDENT NATIONAL PEOP-
Standing Committee Secretary General RY COMMISSION Ministries OF THE PRC LES CONGRESS
Central Committee CC-Departments State/Party Commissions Central Committee
Provincial Party Committee Provincial Government Provincial People‘s Congress
City Party Committee City Government City People‘s Congress
District Party Committee District Government District People‘s Congress
County Party Committee County Government County People‘s Congress
Township Party Committee Township Government Township People‘s Congress
Village Party Committee Village Government Village People‘s Congress
order
Electorate
election
5
General know-how
• China country with long history, culture and tradition ->

nationalism
• China not country but rather continent (i.e. not one
market, but many different ones)
• In the East (coastal areas) highest population density,
modern cities, high traffic density, cosmopolitan
• China is changing rapidly, therefore often tradition and
modernity together / right next to each other
• China not „either-or“ but „as well as“
6
1. Travel know-how
Money/Credit cards
• Chinese currency Renminbi Yuan (RMB) not convertible,
not available outside China
• Money changing at airport, large hotels or Bank of
China, EUR, USD, Pound and traveller cheques without
problem, but always bring passport
• Have small change ready, often even 50 RMB notes are
difficult to change
• In exclusive hotels, restaurants and shops credit cards
(VISA, AmEx, Master, DC) accepted
• ATMs in banks and often hotels, but check symbols on
your credit/debit card for conformity of systems
7
1. Travel know-how
Currency
• 1 Renminbi Yuan (RMB, kuai) = 10 mao (10 jiao) = 100 fen
RMB often called kuai, abbreviation ¥ or Y
• Notes at 1, 2, 5, 10, 50 and 100 RMB. Even for jiao and
fen notes, but today very seldom. Old and new notes still
circulating.
• 1 € about 10 RMB, 1 ₤ about 15 RMB
8
1. Travel know-how
Safety
• China safe country – for men and women
• Foreigners are favourably treated by Chinese and
security forces
• Still pick-pockets at specially frequented places
• Before journey scan your passport, visa and flight ticket
and mail it to your private e-mail address
• At brawls or accidents do not intervene, because no
Chinese will
• If you have an accident or did damage something be
careful, since foreigners are also seen as cash cows
9
1. Travel know-how
Power supply
• 220 Volt A/C
• Different plugs, but in hotels often adapters at hand
• Power shortage esp. in summer
10
1. Travel know-how
Tipping
• In China not common, except in „western“ hotels where
westerners are common (about 10 RMB for baggage
porter)
• Taxi drivers do not expect tips, but often rounding of fare
(11 RMB for 11,20 but also 12 RMB for 11,80)
11
1. Travel know-how
Toilets
• Many public toilets, but there sanitary conditions often
bad. Never toilet paper in public toilets, so bring your
own or maybe someone close to public toilet will sell
paper
• Better use hotel toilets (usually in lobby) or in exclusive
restaurants, some department stores
• Mostly (except in hotels) squat toilets
• When basket next to toilet, put used toilet paper in in
order to avoid clogging
12
1. Travel know-how
Transportation
• Taxicabs can be stopped nearly everywhere (sometimes
even taxi stops), but careful when cops nearby (fines).
Sometimes cabdrivers afraid of foreigners because of
language barrier
• Meters have to be used, otherwise passenger does not
have to pay. Careful of touts asking you for a ride, they
often overcharge. Tariffs on the back windows of the cabs
• Since most cabdrivers do not speak English, bring
namecards/hotelcards in Chinese or have someone (e.g.
at hotel lobby) write down your destination in Chinese to
show driver
• Simpler to have cabs beckon/ordered through hotel/res-
taurant personnel and let them tell destination in Chinese
13
1. Travel know-how
Time Zones / Time Lag

• In China only one time zone
• Chinese time is 7 hours ahead of continental European
time (in GB +6), during daylight saving time 6 hours
ahead (in GB +5). In China no daylight saving time.
• When writing dates stick to English system
(year/month/day or year.month.day)
14
1. Travel know-how
Opening Hours / Public Holidays

• Banks, government agencies and companies open
mostly 6 days a week, Saturdays often half day. Open
from 8:00/9:00 till 17:00/18:00, often 2 hour lunch break
• Shops open from 7:00/8:00 till 21:00/22:00. Sunday
holiday, but many shops still open; you‘ll find food at any
time of day & night
• Important public holidays:
– Chinese New Year, between end of January and end of
February, holidays one week before and after. All means of
transport will be overcrowded at this time!
– May 1., Labour Day, as well up to 1 week holidays
– October 1., National Day, as well up to 1 week holidays
15
1. Travel know-how
Chinese View of Europeans

• Often very differing, Germany (arduous, reliable, correct
and on time but also no sense of humour inflexible and
arrogant), British rather negative (colonial power)
• Chinese will often know many facts about your country
as well as famous politicians, sports persons, artists as
well as brands etc.
• But also often very differing attitude from Europeans as
well (Hitler great leader)
16
1. Travel know-how
Private invitations
• In China rather unusual, great honour
• Host will say he/she is very sorry for the bad/little food
while you are looking at delicacies enough to feed a
battalion. Praise and try everything.
• Bring a present like a speciality of your country (liquor,
chocolate/sweets but packed, otherwise customs
problems), otherwise buy fruits (many and differing) in
China. Often presents only unwrapped when you are
gone, in order to save face.
• Timing: rather to early than to late. Don‘t stay to long, in
China unusual to stay long after having eaten. Often host
will still ask you to stay to be polite.
17
1. Travel know-how
Food/Eating
• Chinese love to eat
• Banquets usually a lot of different dishes (uneven
number and always more than persons attending) not
individually eaten but from the middle of the table
• Rice/noodles, if at all only as final dish to satisfy appetite
• Exotic dishes not that often. Dog meat very seldom and
more in the South. More common snakes, frogs, snails,
turtles, crabs and often seafood. Usually host will point
these out to you.
• If you don‘t like, don‘t swallow blindly, but leave on the
plate/bowl. If all dishes that have been ordered are being
finished host will loose face for not ordering enough.
18
1. Travel know-how
Food/Eating
• Return invitations if possible (in China or your home
country, if at home order like in China, many different
dishes in the middle, everybody can take from every
dish) and be generous – during banquets most deals are
being brought forward or even finalised – but don‘ be
pushy.
• Chinese businessmen often like to get to know you less
formally (therefore often heavy drinking often Karaoke
singing etc.) in order to get to know and trust you
• In China you are doing business with people not
companies!
• Do not bring your spouse to banquets unless host invites
you to do
19
1. Travel know-how
Food/Eating
• Chinese table manners: slurping, smacking, burping are
a sign of indulgence. Nose blowing very impolite, rather
snuffling and spitting, if necessary to blow your mind, go
out of the room or at least turn away from table. Smoking
very common for men before, during and after meals
• Table cloth, table or in simple restaurants floor being
used as rubbish bin for bones, fishbones etc.
• Try using of chopstick, makes a good impression. Tooth
sticks mostly being used behind hand.
20
1. Travel know-how
Drinks/Drinking
• During meals always tea in addition to other beverages.
Tea will always be refilled
• During banquets alcohol like beer, wine and Chinese
spirit (up to 65%!). Lots of toasts, mostly person to
person, so be careful. Personal toasts should be
returned by you, preferably same liquor. Toast either
ganbei (glass should be emptied) or suiyi (drink how
much you like). If you finish your glass, show your
partner the empty glass. If you jolt glasses, hold yours
below your partners‘
• Since tab water not drinking water in China (but you can
brush teeth with it without problems) in hotels, trains etc.
water cookers, that you can use safely
21
1. Travel know-how
Smoking
• Many smokers, especially older men
• Women smoking are eyed a bit suspiciously
• If you are a smoker you will constantly being offered
cigarettes. So if you are a moderate smoker, better
smoke not in company.
• If you want to smoke, ask first if allowed and if so, offer
cigarettes to all men, at least the first three times
• Non-smoking areas are becoming more common these
days in public buildings, busses, trains etc. sometimes
being adhered to, sometimes not
22
1. Travel know-how
Politeness
• China = ”Land of Politeness”? Only partly true, business
partners and service personnel often very polite
• Foreigners of preferentially treated and as a VIP. But
also often service personnel afraid of foreigners because
language barrier
• But strangers to stranger often rude/impolite, but seldom
to foreigners. Foreigners to this day often stared at and
being called „hello“. Even in big cities many service
personnel or poorer people come from the countryside
and might not have seen a foreigner yet.
23
1. Travel know-how
Dress Code
• Suits for gents, coat/trousers and shirt for ladies
• Especially when hot less strict (no jacket, no tie, often
even only polo shirt
• Careful not to get a cold during summer because of air
conditioning in most buildings
• Too sloppy dresses (no shorts for men, not too much
cleavage for ladies) impolite during banquets, at evening
parties or Karaoke okay
24
Friendship/Guanxi
• In China friendship often = mutual family
beneficial partnership
school- or
• Guanxi = Connections/commitment
Business partner
study-
Who gets a favour/help has to repay friends
these, often in a different context
• Chinese very pragmatic, often seen common
as calculating experience
• Compromise is most important
teacher/student
friends
25
Conventions/Rules
• In China rules define how • In Europe rules are a

socially different persons framework to universally
are interacting communicate
• The socially „higher“ • The rules apply to everyone
ranking person starts, leads in the same way
and finishes a conversation
While in Europe the content dominates most situations, in

China the social status of the communicating persons
dominates
26
Learning/Understanding
China Europe
(through memorizing a huge (with the background of two
number of characters:) world wars:)
Memorizing is most important, Formation of a critical/mature
reproduce what you have personality, that knows how
learned as exact as possible to deal with conflicts and
assumes responsibility
More knowledge More Understanding
27
Self-portrayal
European impression Chinese impression of

of Chinese Europeans
Incompetent, not self- Impolite, unsocial,
assured, unrightful inflexible
28
3. Communication
Reception
• Shaking hands has taken over from the traditional slight
bow. Don‘t be offended if no hand is being offered,
especially Chinese women can still be reluctant to offer
their hands. Stick to the hierarchy when shaking hands.
• Always have sufficient name cards ready, which you ex-
change at every first meeting with each person. Have
bilingual (your language/Chinese) or even trilingual (your
language/English/Chinese) name cards ready. Your
position in Chinese should be as high as possible.
• When exchanging name cards, take them in both hands,
look at them first thoroughly before putting away. Put them
on the table in front of you according to seating of partners
• In China usually last name first, then first name. Last name
nearly always one syllable, first name often two syllables
29
3. Communication
First Contact
• Making new contacts: have acquaintances introduce you
to a stranger. Chinese are focused on networks and will
welcome „friends of a friend“ always warmer than total
strangers
• If no introduction possible, try to find out common
acquaintances or tell about your network – Chinese like
to be acquainted with influential and famous people, or
those knowing them
• When seeing somebody off, bring them to the door, the
further you come with them, the bigger your respect
30
3. Communication
Conversation manners
• Name cards important to find out position of each of your
partners since in China hierarchies much stricter than in
EU
• In China higher position mostly according to seniority. In
delegations not necessary those who talk most, most
important, more common oldest most important
• Content of formal conversations of very general and
noncommittal. For Chinese important to create a good
atmosphere including praise for and thanks to as well as
hope for good co-operation
31
3. Communication
Conversation manners
• Try not to loose your patience or temper, show irritation,
dominate a conversation to much or let the Chinese
loose „Face“. But draw clear lines und don‘t be
indecisive
• Often repeated content is the most important
(redundancy is the key). What is not being
mentioned/answered is either unrealisable, not
interesting or for later
• Do not push to much for definite answers, since your
conversation partner might not be in a position to give
one, rather come back to important questions/problems
during next conversation
32
3. Communication
What not to say/do

• Self-praise – but praise your partner and relatives as
often as you can, but always deny/diminish compliments
paid to you
• Critical or even depreciative comments (to anything)
• negative occurrences (e.g. sickness, mistakes,
calamities, or death)
• Missing sympathy or personal interest for welfare of
partners
• To debate objectively or even controversial
• Trying to address business issues in informal setting
• Making reference to common drinking experiences next
morning
33
3. Communication
Content during small-talk

• Family and descent
• Education and career
• Visits to foreign countries
• Happy events in the family (birth, marriage)
• Shopping leads and experiences
• Offers for help
• Social relationships
• Eating and drinking
• Sports events, international events, world politics (but do
not criticise China)
• Paying compliments
34
3. Communication
Non-verbal communication
• Posture should show respect of partner, don‘t sprawl
• No eye-contact is necessary, staring is impolite
• Keep a bit more distance when standing or seated than
in the West, avoid body contact
• Pay attention to height, sit when you are a lot bigger than
your partner, make yourself smaller
• Facial expression not as important than in the West,
constant smile does not necessarily mean anything
35
3. Communication
Direct Communication
In China In Europe
• Statement/problem • Statement/problem
always in conjunction to independent of social
status of communicating status, often controversial
person discussion
• Chinese communication • Communication in Europe
very indirect, often fact-oriented and direct =>
misunderstood in West => in China considered as
considered as soft, unsocial and impolite,
unclear, dishonest leads to discomfort
36
3. Communication
Content-Time-Relation
In China: In Europe:
First less important, harmo- Important at first, less
ny, most important at end important at end
repetition = importance emphasis = importance
37
3. Communication/negotiating
Pursuing a Request
• Look for commonness (common experience, needs,
motives)
• Find out what the interest of your business partner is,
and in how far could he be interested in my request
• Build up a rationale, that makes it impossible for you
business partner to decline your request without
contradicting himself
• Go slowly, not directly, do not be pushy, find the interests
and weak point of your business partner
38
Pursuing a Request
• In between conversations drop other things, common
positive ground, interconnections (change between
factual level and interpersonal level)
• Tell your main request/proposal at the end, rather
casually, wait for reactions
• During problems or disharmony, hold your request/
proposal back and first eliminate problem
• Redundancy: come back to your request/proposal again
and again, redundancy signalises importance
39
Refusing a request politely

• Don‘t go into/overhear the request
• Be silent, wait
• Discontinue course of conversation, distract
• You‘ve got something urgent to do right now
• Adjourn or be noncommittal
• Avert competence (good idea, I will talk to the person
responsible)
• Make it obsolete (already being taken care of)
• Leaving documents means you are not interested
40
3. Communication
Language/phrases
Rather German than English pronunciation.
x = ch
j = dj
q = tsch
c = tz
ch = dsch
z = dz
ia = ia
ian = iän
ei = eyh (not ai)
41
3. Communication
Language/phrases
you to have
meiyou to not have
dui yes / correct
bu (dui) no / not (correct)
ni/nin you (singular)
wo I
ta he/she/it
nimen you (plural)
women we
tamen they
42
3. Communication
Language/phrases
ni hao Hello
ni hao ma? How are you?
zai jian Goodbye
xiexie Thank you
bu keqi You‘re Welcome
dui bu qi I‘m sorry / excuse me
mei guanxi never mind
hao good
bu hao bad
dianhua telephone
lu/jie street/road
43
3. Communication
Language/phrases
dadi/chuzhuche Taxi
feiji chang Airport
huoche zhan Train station
jinkou/rukou entry
chukou exit
xishoujian/cesuo Toilet
chi fan to eat (literary: to eat + rice)
he to drink
ganbei/suiyi Cheers (empty glass/up to you)
pijiu Beer
44
3. Communication
Nr Cha- Pinyin Hand- Nr Cha- Pinyin Hand-
racter sign racter sign
1 一 Yi 6 六 Liu
2 二 Er 7 七 Qi
3 三 San 8 八 Ba
4 四 Si 9 九 Jiu
5 五 Wu 10 十 Shi
45
• Contact
German-Chinese Business Association,

(Deutsch-Chinesische Wirtschaftsvereinigung,
DCW)
Unter Sachsenhausen 10-26
50667 Köln
Tel.: 0049-221-12 03 70
Fax: 0049-221-12 04 17
E-Mail: info@dcw-ev.de
Web: www.dcw-ev.de
46

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Asia Interprise Leap, Spectaris, October 15, 2007, Berlin

Business Culture China

Provincial Party Committee Provincial Government Provincial People‘s Congress

City Party Committee City Government City People‘s Congress

District Party Committee District Government District People‘s Congress

County Party Committee County Government County People‘s Congress

Township Party Committee Township Government Township People‘s Congress

Village Party Committee Village Government Village People‘s Congress

• China country with long history, culture and tradition ->

Time Zones / Time Lag

Opening Hours / Public Holidays

Chinese View of Europeans

• In China rules define how • In Europe rules are a

While in Europe the content dominates most situations, in

More knowledge More Understanding

European impression Chinese impression of

What not to say/do

Content during small-talk

Refusing a request politely

German-Chinese Business Association,

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