Given at SourceDirect at ASD in Las Vegas, this presentation covers the basics of doing business in China - from introductions to etiquette to food to gift giving and negotiating. It's a great start on the long journey of doing business with our friends in China.

1. Presented by Stephanie Selesnick, President
International Trade Information, Inc.
Stephanie@intltradeinfo.com
@stephselesnick

2. True/False:
1. China is one time zone
2. The concept of face is all about the make-up
3. In China, negotiation is a national sport
4. Chinese people are terrible at returning
emails.
5. If you cut anything up small enough, it all
tastes like chicken.

3.  Trade show veteran
 Helps internationalize US trade exhibitions
 International expo industry blogger
 US SalesAgent for SNIEC, Shanghai New
International Expo Centre, the largest
privately held/run center in China
 First trip to China was 1991
 Love to share knowledge and learn!

4.  ChineseGeography
 Languages
 ChineseCulture
 The Concept of Face
 The Government’s Role
 Anatomy of a Business Relationship
 The Beginning
▪ Gift Giving
▪ Mealtimes
 The Dance - Negotiations
 Ongoing Relationship Challenges
 Questions & Answers

6.  Mandarin is spoken in the north (and west)
 Cantonese is spoken in the south
 Written Language
 Mandarin:
▪ Simplified: 3500 characters
▪ Traditional: 7000+ characters
 Cantonese:
▪ 5009 characters

7. Communication is different due to cultural differences:
 Formal
 Hierarchical
 Rules are important
 “Personal Space” is different
 Most have no siblings or first cousins
 People address each other formally
 Titles are ALWAYS used
 Relationships, Relationships, Relationships
 Long term focused

8. “Face” is your position and standing in the eyes of
others, and it also has to do with the degree of respect
you receive.
 Face represents a person’s reputation and feelings of
prestige within multiple circles, including the
workplace, the family, personal friends, and society at
large.
 The concept of Face can be understood by breaking it
down into separate components: the individual view,
the community view, and actions.

9. Business Relationships:
 The client usually receives more Face in the early
stages of a relationship from the “seller.” Face
must be given to the client in order to make it
believed that the seller is worthy of their money
and time.
 Excerpted from:
http://chinaculturecorner.com/2013/10/10/face-
in-chinese-business/

10. 1. Whenever someone outranks you or is older than
you, show more respect.
2. Give Face when you want something from
someone in China (e.g., a business deal or a favor)
3. Forming the relationship is important and Face is
merely the facilitator.
4. Even when not required, Face can still be useful in
all business dealings with international suppliers.

11.  The Beginning
 The introduction
 Turtles
 Email and the challenge therein
 Expect lots of professional and personal questions
▪ Longevity of your company
▪ How long you’ve been in your job/your work history
▪ Personal – expect the gamut
 Meeting in Person is a must.

12.  The Chinese Government – much more
control, some corruption
 Ministry of Commerce- top down
 The US Government – will they help?
 US Dept. of Commerce

13.  Gift Giving is a fact of life in China.
 Exchanged either at the introductory meeting
or after negotiations are completed.
 They should not be too nice, or it looks like a bribe.
 Sometimes gifts should be for an office,
sometimes for the person you are meeting with.
 Use 2 hands to deliver the gift.

14.  Remember the hierarchical business culture
and gift accordingly.
 Packaging presentation is important!
 Wrap gifts in red, gold, pink or silver. Never in
yellow with black writing, white, black or blue.

15. Good:
 Brand names
 US Chocolates/Candies (See’s Candies in gold boxes)
 US Basketball logoed items
 Something with an “8”
 Handicrafts or illustrated books from your home town
Bad:
 Knives (sharp instruments), shoes, watches (clocks)
 Anything in the color white
 Green hats
 Nothing with a “4”

16. Food is important!
 Usually held in a private rooms of restaurants
 Where you are seated does matter.
 The food is normally pre-chosen/ordered.
 Spare bits and parts (offal) are almost always
included
 Use chopsticks
 Rice comes at the end of meal and is only eaten if
you are still hungry (an insult to the host).
 Toasting and alcohol

17.  Many Chinese don’t want to eat our food.
 Ask if they want to try something new
 Ask around for a “real” Chinese Restaurant
 No PF Changs!
 See if you can get a more private area within
whatever restaurant you go to.
 Mealtimes are “getting to know you” sessions
– not business (both countries).

18.  Where you are seated does matter
 Business Card etiquette:
 This is everyone’s “face” or “image” to theWorld.
▪ Use “+1” before the US area code
▪ Always put USA or United States on your card
 How do you present your card to others?
▪ In Asia: Two handed and examine it.
 Never place another’s card in your back pocket or
write on it in front of them!

19.  Leave the business cards on the table in front
of you, arranged how people are sitting so
you may address them by name.
 Top level execs do the talking unless
subordinates are asked specific questions.
 They do not speak out of turn.
 On interpreters – they sit behind whoever
they are translating for

20.  Negotiating is a national sport.
 “Special prices”
 Yes does not always mean yes, but no usually means no.
 Relationships, relationships, relationships!
 Expect renegotiation just when you thought the deal
was done (just one more thing)
 The Grind
 Get the deal in writing! Use an experienced legal
team.
 Read this: http://www.chinalawblog.com/2012/08/how-to-handle-
chinese-negotiating-tactics.html

21.  Quality Control is the #1 complaint
 Inspect, inspect, inspect
 Incoming inspections must be done in China,
preferably at the factory.
 Have your own staff or hire a QC company in
China to handle inspections.
 The email hassle
 Things always take longer than you think
they will. Patience is a necessity.

22. You’ve made an order with a Chinese factory.
It’s arrived and is wrong. How do you handle it
without making your supplier lose face?

23.  The Chinese have had thousands of years to
develop their culture. In the US – 200+
 Once you think a deal is done, it’s just
beginning.
 If you cut anything up small enough it tastes
like chicken.
 Gift giving is important.
 Always do your homework!

24. True/False:
1. China is one time zone (True)
2. The concept of face is all about the make up
(False)
3. In China, negotiation is a national sport
(True)
4. Chinese people are terrible at returning
emails (True)
5. If you cut anything up small enough, it all
tastes like chicken (mostly true)

25. Presented by Stephanie Selesnick, President
International Trade Information, Inc.
Stephanie@intltradeinfo.com
@stephselesnick