8 things you need to know when doing business in China

China is no longer just the world’s factory. It has become one of the world’s largest population of buyers. Whether you want to buy from China or sell to Chinese customers, you are bound to come across distinct cultural differences between the way business is conducted here as compared to our Western counterparts.

Eight things you must know when doing business in China

1. Communication differences

The Chinese can be shy and tend to communicate indirectly.

For example, there can be many different meanings behind “yes” and “no”.

Should a disagreement occur, instead of saying “No” to face, they may say, “Yes. That is a good point, but I need to think about it.” This is a strong “No.”

A straight up “No” is perceived as being disrespectful and embarrassing for the other party. Similarly, should you disagree with a Chinese person, pointing it out indirectly will be much appreciated.

Another interesting example on the opposite end is that if you invite a Chinese for a meeting and ask them if they would like some tea or coffee. They are very likely to say “no” and give a reason like that they had some water on the way or that they are not thirsty.

But in fact, they actually would have liked some tea and coffee. They were taught that to be polite, they had to wait to be asked at least 3 times before accepting the favour.

2. Timing of business meetings

Photo credit: Sonja Langford

Western businessmen can be particular about timing. In Western countries, it’s typically considered inappropriate to arrive too early prior to the agreed time, especially when visiting someone else’s place.

In China, people are more likely to say, “Call me when you arrive,” instead of agreeing on the time.