Business Etiquette and Conflict in China

by Jamie Beer

Business etiquette in China is built around a deep respect for elders and rankings, as well as a heavy emphasis on building good personal relationships and maintaining a professional attitude. Almost all business is conducted with high consideration for who is wielding the most power and who will most benefit from the deals. The high regard for power distribution stems in part from China's Communist government and history of respect for the elderly and formal ranks.

The Chinese approach to business conflict is significantly different than the Western approach. Conflict in China tends to happen much less often than in the West, but with a much greater intensity when problems do arise. In the West, conflict is usually handled by figuring out who's at fault for causing the problems. In China, conflict is resolved not by assigning blame to individuals, but taking a more positive approach by figuring out a solution that provides the most benefit to both parties involved, with special consideration given, of course, to who's wielding the most power. This approach generally enables both sides to benefit and salvage the business relations, rather tearing the relations completely apart.

Given that short overview on the general Chinese business conduct, the best way to successfully conduct business with the Chinese and avoid creating conflict is to have a basic understanding of Chinese cultural practices. As was previously stated, business is very formal in China, so dressing professionally is an absolute must! Business attire must be modest, with neutral colors; casual dress does not have to be as formal but should still have an emphasis on modesty and professionalism. It's especially important to arrive on time for events, and care must be taken to give the proper respect due to someone's rank.
One should also work on developing good relations with the Chinese--having friends in China is perhaps one of the biggest assets possible to acquire when conducting business there, since they can help guide through tricky cultural hurdles and open up opportunities that might not otherwise be available. Becoming good friends with one's business partners also enables conflicts to be sorted out more quickly and easily--the Chinese will be more forgiving of accidental social blunders if they like you.
When at dinner parties, it's generally best to mimic what the host and the others are doing. Business conversation should be saved for later, and while it is acceptable to refuse food offered to you, it is rude to eat everything on your plate(this signals that there was an inadequate amount of food present). The traditional rule of trying a bit of everything is still in good manners though, although you do not have to finish the food that you do not like.
Gifts are also a good way to develop relations, but must be approached carefully to avoid insulting the Chinese. It is best to present gifts either privately, or in public to the leader of the whole group. Giving gifts to government officials should be avoided, since it is considered a bribe. Items resembling weapons, or items such as clocks, straw sandals, or anything that is black, white, blue, or has storks or cranes on it should be avoided--these last items the Chinese most often identify with death. The most ideal gifts are those that carry some sort of cultural significance from your local area back home.

All that being said, the two major keys to successful business in China is to remember the proper respect due to one's rank, and to make close friends. Conducting yourself professionally at all times and developing good relationships will open up many opportunities, help you avoid creating conflicts, and allow you to more easily resolve problems should they arise and achieve more favorable outcomes overall.

Sources Consulted and Further Information

http://www.tradecommissioner.gc.ca/eng/document.jsp?did=107932&cid=512&oid=32

http://chinasolved.com/2011/10/conflict-in-chinese-negotiation-the-basics/

http://www.cyborlink.com/besite/china.htm

http://www.businessforum-china.com/management_article_detail.html?articleid=337