China is shrouded in so much mystique, that one may wonder how its growth as the world's second-largest economy has piqued the interest of many Western businesses. Doing business in China emerges as a challenging feat, considering that both the East and the West share cultural contrasts.
Nonetheless, as the Chinese economy continues to tread along a vibrant path, more foreigners are set to gain interest in doing business in China. But certainly, they would have to understand that Chinese business culture has its set of peculiarities; these useful tips can keep them on the right track.
Learn the language
Although Chinese people these days are now more knowledgeable in the English language, most of them have yet to learn how to use it in a technical manner. That's why it pays that foreigners reach out to their potential Chinese partners by learning the Chinese language--it's an investment that can pay tenfold.
Recognize hierarchy
Chinese society is notoriously hierarchical, and doing business in China means that foreigners looking to have a piece of Chinese economic gains need to highly regard the concept of hierarchy. When negotiating, businesses must understand that decisions are ultimately made at the top.
Cultivate trust
Building trust is essential among the Chinese, and the same stringently applies for doing business in China. That's why it's important for foreigners to socialize with their potential Chinese partners first, as such allows both sides to "break the ice" in time for proper negotiations to proceed smoothly.
Prepare tokens
Tokens signify good relations for the Chinese, making it an essential component for every business negotiations. Foreigners, however, should understand that the value of gifts is regarded more for its symbolic value than for its monetary value; gifts that are too expensive risk being taken as bribes.
Understand collectivism
Lastly, businesses should keep in mind that Chinese society is collectivist in nature, making cooperation normal when doing business in China. Given that, it takes time for foreigners to be considered as part of inner circles in Chinese business, making it necessary for them to spend time for eventual acceptance.