In recent years, China’s growth as a business destination has been astounding, especially for product outsourcing. Companies of all sizes and from every part of the world have discovered the benefits of sourcing products and materials from Chinese suppliers, particularly the ability to buy high-quality goods at bargain prices.

1. CHINA’S BUSINESS &
CULTURAL ETIQUETTE &
TIPS

2. As one of the largest economies in the world,
China’s has become a top business destination
for many companies across the world,
especially for product outsourcing.

3.  Sourcing low-cost, high-quality goods and material from China has been very popular
among large companies for a while now.
 Today, advancements in technology and logistics have allowed smaller enterprises and
individuals to start taking advantage of it too.
 Despite a recent fall in international trade, China remains one of the top exporters for
consumer goods, furniture, décor and more.
UNDERSTANDING CHINA’S BUSINESS
ETIQUETTE AND CULTURAL MORES

4.  When you’re doing business with any
overseas supplier, it’s important to
understand their culture as well as business
dos and don’ts.
 Chinese suppliers and vendors are more
likely to adapt themselves to your culture and
respect cultural differences.
 Making an effort to understand their cultural
and business standards can help you build
better personal relationships.
SOURCING FROM CHINA IS ON
THE INCREASE

5. #1 – PUNCTUALITY
 The Chinese business culture place a heavy
emphasis on punctuality
 Your Chinese counterpart will likely reach a few
minutes early
 Plan to show up for a meeting with at least 15
minutes to spare
 Planning your itinerary well (to show up before
time) allows you to manage unforeseen traffic
or other delays
 Showing up late is not just bad manners, but
may be considered an insult to the person
you’re doing business with

6. #2 – BUSINESS CARDS
 Appearing without a business card is considered
a bad business practice, so keep a full stock
 Try to get dual-sided business cards, with
English and Mandarin translations
 Even if you’re handed business cards in
Mandarin, “study” them for a few seconds to
show respect
 Always hand over your cards individual-to-
individual, never keep them in a stack and ask
people to take one
 Don’t write on someone’s business card in their
presence, or put business cards in the back
pocket of your pants, wallet or face down on a
table

7. #3 – GREETINGS
 Accept business cards with both hands,
indicating respect for the person giving it to you
 If the person you’re meeting does not reach out
to shake your hand, then nod or bow instead
 Shaking hands is becoming quite common at
business meetings though, so offer a firm and
quick handshake
 If you are introduced to a group and they applaud, acknowledge this greeting
with a smile and applaud back
 Greetings begin with seniors, so start with the oldest or most senior person in a
group

8. #4 – NAMES AND TITLES
 Chinese names are traditionally two-part, with the family
name first (e.g. Li Michael - Michael is the given name
and Li the family name)
 Address people with their title and family name, unless
they invite you to use their given name (e.g. Mr. Li or
Director Li)
 While “Mr., Mrs., Miss + family name” is a good formula
to follow, many prefer to use their government or
professional titles
 Business guests will normally be introduced with full titles
and company names, so try to do the same (e.g. Mr.
John Smith, Senior Design Head at ABC Corporation)
 When in doubt, ask business people how they would
prefer to be addressed

9. #5 – BODY LANGUAGE
 Stand up, nod and bow slightly when accepting
business cards or greeting someone
 For the Chinese, physical contact with
strangers is uncomfortable – don’t hug, back
slap, lock arms or put your arms around
someone’s shoulders
 Clicking your fingers, whistling, putting feet up
on desks/chairs are all considered extremely
rude actions
 Do not beckon to people with your index finger.
Instead place your palm facing down and move
your fingers in a scratching motion
 Do not point with your index finger, use your
whole hand in an open position instead

10. #5 – GIFT GIVING
 Gifts are an integral part of long-term Chinese
business dealings, and do not have negative
connotations
 Do not offer gifts for no reason, or when there is no
one else around but you and the recipient
 It’s considered very rude to refuse a business gift,
but equally so to not reciprocate with a gift of your
own
 If you’re asked what you would like, be open with
your preferences. Show an appreciation for Chinese
culture by asking for handicrafts, etc.
 Don’t offer cash as a gift, but instead pick out
something unique and thoughtful

11. THE CONCEPT OF “FACE”
For business dealings in China, the idea of earning or losing “face” is very
important. Loosely translated, this means 'good reputation', 'respect' or
'honor'.
If you’re a first-time visitor and expect to have long-term business dealings
with suppliers in China, it’s essential to understand how this concept
works.

12. EARNING “FACE”
One can earn “face” through experience
and age, as well as honorable dealings
and a good public image. Showing wisdom
in action by avoiding mistakes increases
face and thereby, the respect due to you.
Keeping a poker face in business dealings
and displaying self-control greatly
increases your face.

13. GIVING/SAVING “FACE”
You can give face to others, by giving
compliments and showing them respect,
especially in public. Others can give you face
by offering compliments about you to a third
party, or giving you compliments in public.
During business meetings and negotiations, if
you show distress or surprise (by audibly
sucking air through your lips and teeth) it’s a
loss of face for the person offering the deal.
Consider changing the proposed request/deal
to allow your Chinese counterparts to save
face.

14. THE BOTTOM LINE
This compilation of tips is meant as a basic guide to help you with your
business dealings in China.
 There are many other things that may come into play, like
avoiding national holidays and not getting too
personal/informal at meetings.
 Remember, Chinese negotiators will show humility and
deference during meetings, to present themselves as
vulnerable and weak.
 Placing you in the “stronger” position leaves much of the
dealings in your hands, but if you show anger or
frustration, this “weakness” will be exploited.
 Use the services of a procurement or sourcing specialist if
you’re unsure about your ability to handle negotiations
with the Chinese.
 Remain clear about what you want, check out all your
options and go into your sourcing trip with a plan in place! Download Now