EVERBRIGHT ASSOCIATES, INC

MEMORANDUM

Date : May 22 , 2020

To: Mr.Sajawal Ali, CEO

From: Shams Khan, Intern

Subject: Information about the Business Etiquette and Social Customs of China

Introduction:

The objective of this report is to inform you about the Business etiquette and social customs of China.
China has been among the world's fastest-growing economies. China is now offering new job
opportunities. So for Pakistani managers traveling to the country for business, they need to recognize
the local culture and business etiquette of China. This memo accompanies a report that
comprehensively analyses the social customs and business etiquette of China.

Social Customs and Protocol in China:

Meeting Etiquette: Normally greetings are formal and the eldest person is always greeted first. A good
strong handshake is the most common form of greeting with foreigners with less formal greetings with a
slight bow or nod of the head.Many older Chinese will look to the ground when greeting someone.
Address the person by a respectful title and their surname. If they want to move to a first name basis,
they will advise you which name to use.

Communication style: Chinese non-verbal communication speaks volumes. Since the Chinese strive for
harmony and are group dependent, they rely on facial expression, tone of voice and posture to convey
meaning or intention. Frowning while someone is speaking is interpreted as a sign of disagreement.
Therefore, most Chinese maintain an impassive expression when speaking.

Gift Giving: Generous gift giving is a significant part of Chinese culture in the past. Nowadays in business,
official policy in Chinese business culture forbids giving gifts; this gesture is considered bribery, an illegal
act in this country. In general, gifts are given at Chinese New Year, weddings, births and more recently
(because of marketing), birthdays. Do not give scissors, knives or other cutting utensils as they indicate
the severing of the relationship.Gifts are not opened when received. Gifts may be refused three times
before they are accepted.
Mr.Sajawal Ali Page 2 May 22 ,2020

Business Dinner Etiquette:

Seating arrangements: The most honoured guest sits on the side of the table furthest away from the
door, positioned at the middle of the table, with the second most important person seated next to them
and so on, in descending order of importance. This means the host will generally sit at the middle of the
table on one side, with the honoured guest seated directly opposite. Be sure to arrive on time and wait
to be told where to sit.

Table Manners: Don`t start eating before others, especially the elders and seniors as rank is very
important in Chinese culture .Learn to use chopsticks and the Chinese soup spoon. This will leave a good
impression on your host, showing your respect and consideration for the Chinese culture. Do not drop
the chopsticks, it is considered bad luck . It is also important to know how much to eat. Leaving an empty
dish signifies that you were not given enough food and not touching your food is offensive as well.

Attitude towards Time: In general, timing is pretty important in the Chinese culture. Even if you will only
be a couple of minutes late, it is polite to give notice. Sometimes if you turn up early, depending on the
situation, an apology may also be required.

BUSINESS CULTURE & ETIQUETTE:

Wearing Style : Business attire is conservative and unpretentious. Men should wear dark coloured,
conservative business suits. Women should wear conservative business suits or dresses with a high
neckline.Bright colours should be avoided.

Business cards: Business cards are exchanged after the initial introduction.Have one side of your
business card translated into Chinese using simplified Chinese characters that are printed in gold ink
since gold is an auspicious colour. Your business card should include your title. If your company is the
oldest or largest in your country, that fact should be on your card as well.Hold the card in both hands
when offering it, Chinese side facing the recipient.

Business Meetings:
● Appointments are necessary and, if possible, should be made between one-to-two months
in advance, preferably in writing. If you do not have a contact within the company, use an
intermediary to arrange a formal introduction. Once the introduction has been made, you
should provide the company with information about your company and what you want to
accomplish at the meeting. You should arrive at meetings on time or slightly early. The
Chinese view punctuality as a virtue. Arriving late is an insult and could negatively affect
your relationship. Pay great attention to the agenda as each Chinese participant has his or
Mr.Sajawal Ali Page 3 May 22 ,2020

her own agenda that they will attempt to introduce. Send an agenda before the meeting so
your Chinese colleagues have the chance to meet with any technical experts prior to the
meeting. Discuss the agenda with your translator prior to submission.
● Presentations should be detailed and factual and focus on long-term benefits. Be prepared
for the presentation to be a challenging experience

Negotiating: Only senior members of the negotiating team will speak. Designate the most senior person
in your group as your spokesman for the introductory functions. Business negotiations occur at a slow
pace. Chinese are non-confrontational. They will not overtly say 'no', they will say 'they will think about
it' or 'they will see'.

Conclusion: There is an enormous Cultural difference between Pakistan and China. Understanding the
cultural differences and traits of a diversified workforce is mandatory for Managers. For a Pakistani
businessman it is crucial to recognize the social customs and business etiquette of China and avoid
etiquette blunders.

I would welcome any question you may have.