How to do business in China

The Middle Kingdom has its own codes to enable entrepreneurs to access the key to success.

You need to have a real understanding of these cultural practices when you contract with the Chinese. All odd can affect the continuation of your business.

This topic may seem you disconnected with legal topics, think again!

These cultural aspects are essential and primordial and signing your contract or the development of your business may depend on it.

It should not be overlooked!

Should I speak Chinese?

Yes, but in a certain proportion.

This question seems trivial and yet it a real interest.

You should not be fluent in Chinese which requires a long apprenticeship.

However, yo can learn some words and phrases that are still good impression on your partner. You show that you have taken the trouble to inform you about the culture and that you are interested in China. This will ease the situation and become much friendlier atmosphere conducive to negotiation.

This is a great asset, which obviously does not exempt you to have a translator with you to conclude your business.

'The Face'

This concept evokes little and yet it is part of the winning trio.

It lies in the fact of never make your interlocutor or Business Partner to lose face.

This concept is manifested by the fact that you should never put your interlocutor in uncomfortable situation such as interrupt him or contradict him in the presence of others.

This concept also covers all customs to follow when you are in China, ie business partners honor, thank, flatter, toast them and taste all the dishes.

It should be in the eyes of those present your business partner is seen as the best partner.

You will be prompted in luxurious restaurants, it is then that your partner will show you that it has a certain aura. So you will need to drink more than reason and taste typical Chinese dishes. This is called Gambei ie you should drink your entire glass. Especially when a person offers a dinner Gambei do not refuse.

Do not overlook this passage because it is when you eat and drink that you conclude your business.

Your Chinese partners will during this 'ritual' analyze your potential to do business and decide how to proceed with your partnership.

Guanxi

Guanxi is a purely Chinese concept that means, network, to know lots of people in the professional field.

In China, it is one of the keys to succeed. The most you will have Guanxi the most you will be recognized and you will succeed in your business. If you do not have Guanxi, you will not succeed to install properly your business in China.

Guanxi is not easy to acquire. This is real work to maintain your relationship with Chinese partners.

Do not refuse a meal, a cigarette or a tea ceremony, you might develop during these exchanges affinities which later will be critical.

Well do not hesitate to invite your business partners to the restaurant!

Maintain the relationship

Maintenance of the relationship with your partner is a direct result of the Guanxi.

When you meet your partner you should always come with a gift mainly with a good value. This shows the interest and importance that you grant to your partner.

You will become 'good friends' and you're going to have this relationship. The business relationship is much more 'push' in China than in other countries.

You will also need to toast with all members of the table at a business dinner, stay welcoming and smiling because it shows your pleasure to be in their presence and to share this meal. Never refuse one Gambei!

Remember that you are doing business, no detail is overlooked!