This document summarizes an article about managing Chinese culture in business. It discusses 8 main points for understanding Chinese cultural nuances that are important for foreign businesses, such as saving face, indirect communication styles, traditions/superstitions, societal classes, language, geography, business etiquette, and social events like karaoke. Mastering these cultural aspects can help companies avoid mistakes and better connect with Chinese partners and markets.

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Viewpoints
Managing Chinese Cultures: Breaking The Taboo and
Stereotypes
By Mel Lim & Wendy Mills
Search ... It all started with the Oreo cookie. My sister and Business Insights
Consultant, Wendy and I, were casually discussing how Kraft introduced the
iconic American cookie to China in 1996, and it took them almost a decade
later to reinvent the round biscuit into a wafer, and the recipe to fit the
Subscriptions Chinese market. We wondered, why a company as big as Kraft, with all its
resources and means, took 9 years to adapt a product?
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Our conversation truly was not about the Oreo wafer versus Oreo cookie, but
it was about a statement I made. I said "Chinese people do not like sweet
Mel Lim
cookies! Have they (the Westerners) seen our desserts? One Chinese team
member on Kraft's team would have saved them millions of dollars!" Wendy
and I paused for a moment and thought, "Are we stereotyping ourselves?"
While there are many publications on China's cultural determinants:
economic policies, politics, race/ethnicity, language, acculturation, gender,
age, religion, socioeconomic classes and education, we feel that managing
cultures spans beyond reading and observation. It can only be mastered
through breaking sensitive taboos and stereotypes, while ultimately
understanding and respecting traditions.
Wendy Mills
So today, we are going to share with you 8 main "cultural" points. We maybe
ostracized by our own Chinese community after this article, but if it helps companies shave off a decade
worth of research, money and time while promoting cultural tolerance? Why not!
1) The Art of Saving Face – To give, save and not lose it
If you can master the art of Saving Face, you will have no problem doing business with the Chinese. It's
essential to establishing trust, respect, and simply to exist in the professional work environment.
Here is an example. In the US, if your boss is in the midst of a presentation and has forgotten his lines
or does not know an answer to a question, as a team player, you would naturally want to step up and
help out with the presentation right? In China and certain parts of Asia, you should probably think twice,
as an act like that would have caused your boss to lose face! You would have directly insulted or
embarrassed him and you will probably be reprimanded. So learning when to say, what to say and who
to say it to is crucial to building a successful relationship with your Chinese counterparts.
Also, know your place, especially in the conference room. Sit according to your rank. It may not mean
much to a Westerner but to a Chinese, the head honcho usually sits in the center or at the head of the
table.
2) No Means Yes; Yes Means No – Cultural nuances
My late father once went to dinner with my Caucasian husband and business partner, Joe. I had
informed Joe that when the bill came, insist on paying, even though my father would fight him over it.
Joe asked why it had to be so complicated - I said it's just the way Chinese people handle this issue.
But his next question was legit. He asked when is it that you know for a fact that YOU really have to pay
for the meal?
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Two scenarios: 1) When you are the host or when you are the eldest (or more established) at the dinner
table; 2) At business functions, insist on paying as good will, and to show that you are not this cheap,
calculative, foreign business person to work with. It shows that you are open and respectful of the
relationship you are about to build with your new client.
3) Eat The Bird's Nest Soup – Traditions and superstitions
Chinese superstitions are very complicated. Even my sister and I would sometimes cross check each
others "facts," before we proceed with certain actions. In Asia, most business deals are done over
meals (similar to how business in the US is carried out on the golf course) Hence, it is best for you to do
some research and be prepared - use chopsticks, drink some hard liquor (ie. XO Hennessey) and eat
some foods that you may have seen on Fear Factor. That way when you are served some bird's nest
soup (bird's regurgitated saliva nests) you are aware that it's a delicacy served only to the respected
honored guest and it's not to gross you out.
4) Malcolm Gladwell's Rice Paddies – Do not underestimate societal class
"No one who can rise before dawn three hundred and sixty days a year fails to make his family rich."
- Malcolm Gladwell, Outliers
In Penang, Malaysia, where we grew up, there is a famous street called Gurney Drive where it is known
for its "hawker" food vendors making the best local kway teow (noodles) and bbq octopus. While it may
look "interesting" to many foreigners, it may also look like a street filled with squalors - People squatting
by the side of the road, eating and drinking, cleaning pots and pans, while cars and scooters zoom by.
Joe once asked me, "How can you people EAT like this?" Well, Joe, this scene may not be your Four
Seasons, but guess what? At the end of each night, when the street vendors wrap up their stalls, they
may drive home in their expensive Mercedes Benz and their kids attend the best universities in the
world. That is the epitome of being Chinese. Understanding societal classes is important. We often think
that only the upper middle class can afford luxury goods but in Asia, a so-called squalor may have
unknown spending power that may shock you!
5) Ni Hau Ma – Language
Would it be okay if I didn't know how to speak, read or write English? Especially if hired to help
American businesses innovate? It would be unspeakable! So when doing business in China, either
learn the language or hire someone that does.
6) No we don't all look alike! – Know your geography and races
More times than I can count my name has been confused or mispronounced. I am a Lim, not a Kim, Lee
or a Lin. I am not Filipino, Japanese, Korean or Taiwanese. I am Chinese. When you are doing business
in Asia, knowing your countries and geography will help save you some "face." The number one
mistake is to mispronounce your client's name and tell him that he reminds you of that Hawaiian friend
of yours when in fact he is from Beijing!
7) Bamboo and Johnny Walker Blue Label – Business etiquettes
"The (Chinese) culture is about manners, as much as it is about business."
There is a scene in the movie Wall Street: Money Never Sleeps, where Jacob Moore played by Shea
Lebouff, had just stolen the limelight from his co-worker, impressing a group of Chinese investors to
fund his fusion energy project, by dishing out Mandarin, and extending a $500.00 Johnny Walker Blue
Label scotch to the client. Jacob also sends the bamboo flowers, which symbolizes continued growth
and prosperity. Now to many, that may just be over glorified Hollywood script writing, but to us, that is
just how business is done in Asia. Business gifts have to mean something good. For instance, do not
give a Chinese client a George Nelson designer clock. You may think it's the perfect gift, but to the
Chinese, you just presented a gift that tells them to kick the bucket!! Do your homework, before you try
to impress your Chinese counterparts.
8) Karaoke – Happy Hour
Ahh, the dreaded scenario of happy hour with your Chinese clients... seriously, to me it's the most
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3. DMI News & Views - Viewpoint - Relearning to Innovate http://dmi.org/dmi/html/publications/news/viewpoints/nv_vp_lm.htm
exciting thing in the world. YES! I do karaoke and enjoy a glass of XO from time to time, but it's also
because I've been trained by my Chinese entrepreneur parents since I was 9 years old, the ways of
Chinese business. Three things you can do if you are absolutely not a singer or a drinker. You could
bring a co-worker that can handle his/ her liquor, and still maintain his/ her professionalism, or do not
drink but accept to sing a song or two, or reject both but be the one to buy the drinks! You have to
somehow figure out how to go give "face" to your client's generous invite. Either way, pick your battle
wisely, but if you accept a happy hour invite, make sure you bring your mojo with you.
About the authors:
Mel Lim, Principal / Creative Director, MLD
Wendy Mills, Business Insights Consultant
Mel Lim and Wendy Mills have been managing cultures their entire lives. Growing up in a household
with a Roman Catholic father, a Buddhist mother, an Orthodox Jewish aunt, a Muslim uncle and auntie,
and now with their spouses both Caucasian and African American, they are accustomed to quite
colorful holiday dinners and religious festivities.
Join the Discussion
Please add your thoughts and comments about this article. Constructive debate is welcome, however,
personal attacks will be deleted.
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Pat Saison 3 months ago
My mom had a story about two relatives, known as the cheapskates. They live in Gulangyu, an island
off of Xiamen (Fujian) and had to take a boat across. In the olden days, the boat fare was 2 pence (or
whatever the local currency was). The two cheapskates happened to get on the boat together, and each
worried about what to do--should he pay for the other? Politeness would so dictate, but just the thought
made the heart thump. When they got to the dock, without hesitation, each pulled out one pence and
walked off.
Like Reply
Linda Lin 3 months ago
Excellent article. And I love how you had "8" points to share. Nice touch. I must say, as a Chinese
American, I wouldn't mind a George Nelson clock any day -- in fact, I have one and it was given to me as
a gift. :D Now, in my "circle" of family and friends, if we ever give a clock, we ask the recipient for a
penny in return so the clock is "bought" and not "given" ("song").
Like Reply
Mel Lim / MLD 3 months ago
Hey Linda! The penny thing applies to shoes and perfume too! If you buy shoes for someone, they
may walk away from you...and if you buy someone perfume, it may make the relationship sour.
1 person liked this. Like Reply
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4. DMI News & Views - Viewpoint - Relearning to Innovate http://dmi.org/dmi/html/publications/news/viewpoints/nv_vp_lm.htm
Angela E. Yeh 3 months ago
Great article. Mel & Wendy do a great job explaining the delicateness of these traditions and how and
when to abide by them. Being American born Taiwanese myself this article even reminds me of some
of the more traditional cultural etiquettes I forget about, like knowing not to give a clock as a gift. And I
recall situations where insisting to pay took many turns before someone won the paying battle.
Like Reply
Mel Lim / MLD 3 months ago
Hi Angela - Thanks! Ahhh.. the restaurant paying battle scene is always a true delight to watch.
When we were growing up, we would watch our aunts and uncles duking it out, while saying "You
have to give me face to pay for dinner..." while the other party would say "You are NOT giving me
face by wanting to pay..." and our parents would just excuse themselves to the restroom and
settled the bill quietly. After all, they were the eldest at the dining table.
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This article appeared in the March 2012 edition of the DMI News & Views.
The views and opinions expressed in this article are those of the authors and do not necessarily reflect
the position of DMI.
Feedback on DMI Viewpoints and article proposals are always welcome! Please email jtobin(at)dmi.org.
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