GOING GLOBAL GOING GLOBAL


China is one of the greatest economic successes of the past 30 years. Having the world’s largest population and a fast-growing consumer market, it represents a huge and expanding market for UK businesses, already becoming the UK’s sixth largest export market. In 2018, for example, the South West alone exported goods to the value of £668m to China, an increase on 2017 of 18% (source: CBBC and HMRC). Of course there are a number of


unique challenges when dealing with such a vast and varied country, but help and advice is available from numerous bodies such as the Department for International Trade, various financial institutions such as HSBC and Santander, the China- Britain Business Council, the China Britain Business Association and, of course, Chambers of Commerce. These will all help with the regulatory requirements and logistical aspects of doing business with this desirable export or import destination. But what about the less obvious


hurdles of doing business with such a different culture? By understanding Chinese


practices and etiquette, successful relationships can be established and blunders can be avoided, which, for the unenlightened, could break a deal. Of course, basic rules and common sense will always prevail but here are a few points that are worth noting:


Language As with every country hello, thank you and excuse me go a long way, and making an effort to learn a few short phrases can help to establish mutual confidence. Mandarin is the official state language of China, whereas Cantonese is spoken by the people of Hong Kong, Macau and the wider Guangdong province, including Guangzhou.


Business cards These are usually exchanged after the initial handshake, introductions and greetings. They should be presented with both hands and held out as if giving the host a gift. They will be received with respect and the same deference should be shown in return. It is good manners to read the business card immediately and keep it laid out on the table.


Mianzi (face) This an important concept in China - saving face, losing face or giving face are crucial elements in business life.


LEADING ADVICE FROM THE INTERNATIONAL TRADE TEAM


The dos and don’ts of doing business in China


No Chinese person wants to be


embarrassed or made to feel insignificant and it is therefore vital to show respect for people’s feelings. Every person's reputation, dignity and prestige counts and even Chinese corporations and entities have face, not just individuals.


Guanxi (connections or relationships) This denotes the interpersonal links and reciprocal obligations that come from a social network and is believed to be a major factor when it comes to being successful in China. Developing a strong network of trusted partners can be helpful – especially when it comes to introductions and negotiations.


Hierarchy Hierarchy counts in China, whether it’s who speaks first at a meeting or a seating position in the boardroom or restaurant. In the case of the latter, the


person who is the host and most likely paying the bill sits farthest from the door, the second most important sits at their right and third on their left, according to Phil


Hawthorne, Head of Design at Red Paddle Co, based in Totnes, who regularly travels to China for business. He explains further: “A round table is not equal! When entering a room with a round table for dinner it’s safer to wait to be told where you’re sitting.” Similarly the oldest/most senior


person should always be greeted first and should be addressed by their title and surname.


Patience


Decision-making is often slow, and it is therefore important to be patient, listen for subtle messages and remain non-confrontational. Small talk is essential and it may be considered rude to start talking business immediately.


Finally, learn to use chop sticks! Attempting to eat with chopsticks will demonstrate respect and appreciation for Chinese culture.


‘Even Chinese


corporations and entities have face, not just individuals’


Summer 2019 Chamber Profile 37


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