Ten tips to help you establish solid business relationships in one of the world's fastest growing economies
The UK's trade deficit with China is growing. But that doesn't mean exports to the burgeoning superpower are faling. In the past three months, the value of UK exports to China has risen 5.6 per cent, compared to the previous quarter. It's a sign that British entrepreneurs are becoming more adept at building relationships in the Far East. Edward Holroyd Pearce, a director at CRCC Asia, offers ten tips to help UK exporters make the most of Chinese markets.
1) It's not what you know. Don't underestimate the importance of Guanxi, the network of connections that allows things to get done. Thousands of years of family-oriented culture, coupled with more recent periods of shortages where you needed good connections to get essential products, has resulted in an enduring concept of Guanxi.
2) Show respect. More so than in the West, showing repect -or Mianzi-is all-important. You need to know and use the correct form of address during greetings, meals, drinks or conversations. If you're asked "Don't you find the pollution in China terrible?" a truthful but respectful response could be "Well, it's bad, but given China's fast economic growth, it's understandable".
3) Eat well. Expect to be taken out to eat, where ordering expensive and rare dishes is the done thing. Sea Cucumber, a type of mollusc, which induces retching in many Westerners, often features. These banquets make the most out of your host's entertainment budget, but more importantly are used to show respect to the guest. Don't refuse food because it looks disgusting. You can avoid any undesirable delicacies by listing some allergies before your hosts order food or perhaps by saying your stomach isn't accustomed to certain foods. Drinks flow freely and simple toasts include "wo jing ni" (I show you respect), or "gan bei"(literally, dry your glass) after which you may be expected to do so.
4) Singing for your supper. Karaoke is increasingly popular so expect to be shown into a large specially fitted lounge for the private use of your group. Make sure you have a few old hits up your sleeve to impress your hosts. Well known western hits such as Bon Jovi, Sinatra and the Spice Girls often appear on electronic Karaoke lists.
5) Learn the Lingo. Learning a few simple greetings and more importantly, how to pronounce names and titles, is invaluable preparation. For example, being able to greet "Director Xiao" in Mandarin as "Xiao Zong" (Shee-ow Dzong) will get you some credit and is significantly better than not using his title and mispronouncing his name. Equally, street signs and company names will often use Pinyin, where Chinese words are transliterated in the roman alphabet, so knowing how to pronounce Qs, Xs, Zs and Cs will be of considerable help.
6) Using an interpreter. Ensure you speak in short, clear sentences and use the most common version of a word (say "company" rather than "firm"). Most importantly, keep eye contact with the person you're communicating with, rather than the interpreter. If you're without an interpreter, avoid spending too much time talking directly with people in lower positions just because they speak better English.
7) Think local. Getting both yourself and your company a Chinese name are a priority. The most common way is by combining the desire for a similar sound with the need for an auspicious or strong set of characters. A Chinese website or simple Chinese brochures will make you and your company even more approachable.
8) Be sensitive. We're not suggesting you need to commend the Great Leap Forward. But aim to avoid sensitive issues, such as Taiwan, Tibet, Tiananmen, China's human rights record and Falun Gong. Chinese in general are very patriotic, and highlighting any cracks in the system, however small, is not the done thing.
9) Do your homework. There aren't huge numbers of scam related horror stories, but some businesses definitely have been taken for a ride. The pace of opening up reforms, the speed of development and the scale on which internationalisation is taking place means corners may have been cut. If it looks too good to be true, it may well be. As with any new trading partner, make sure you check creditworthiness and background.
10) Take a long-term view. It takes hard work, dedication and an occasional shifting of the goalposts to nurture a fruitful relationship with a Chinese company. Be self-aware and realistic, and remember that today's banquets, karaoke and delayed signing of contracts could be the turning point for a profitable business relationship in the future.
