10 Tips in Conducting Business with Chinese Clients

Lin Luo | July 1, 2018

1. Earn trust. The most important trait that Chinese executives have is the network of personal contacts (Guanxi). Chinese people prefer to do business with “old friends”. So leverage a mutual connection to introduce you to potential clients or hire an agency who can help you obtain a meeting. Tactics like cold outreach by phone or email are seldom successful.
2. No kidding. Chinese are formal and serious in business. Only joke with them once you know them well.
3. Respect your elders and superiors. Hierarchy is very important in Chinese culture; respect and obedience to one’s superiors are essential. The same goes with age.
4. Show off your credentials. The Chinese value education and degrees even more highly than westerners do. If you have a PhD or MBA, make sure that it is stated on your business card.
5. Share a meal together. Eating together is a very important social activity in Chinese culture. A great deal of Chinese business is conducted over meals.
6. Mums the word. Indirectness is appreciated. It’s better to be polite than direct.
7. Collaboration over confrontation. The harmony of the collective outweighs individual needs. This stems from the agrarian culture – people need to collaborate to survive. It’s better to find a win-win solution to issues than to directly confront clients.
8. Steer clear of politics. For small talk try to avoid political subjects, in particular the topics of “Tibet”, “Taiwan”, human or animal rights. The Chinese are proud to discuss events like the Olympic Games hosted in Beijing in 2008.
9. Focus on the relationship. Once you meet with a potential client, stay focused on building the relationship first. While western business people value the features and benefits of a product or service, Chinese business people will often consider whether you are the right person to do business with – before considering the details of the contract. Once the partnership is established, it is usually long lasting.
10. Share in their commonalities.Whether you are German, Italian, British or Dutch, Chinese business people have much in common with the western world. Here are some cultural aspects you may be able to find in common. The Chinese are often:

• Punctual
• Flexible
• Polite/diplomatic
• Enjoy adult beverages
• Enjoy good food
• Committed to fitness and well being