DOING BUSINESS WITH CHINA:

UNDERSTANDING CHINESE BUSINESS CULTURE

Rui Li
IBA Confucius Institute
How much do you know about China?

What are the Chinese Values?

o GUANXI
o MIANZI
o RENQING

Chinese Tea Time

DOs and DON’Ts in Chinese Business Culture

Q&A Session
How much do you know about China?
1. What is the capital of China?
Beijing

2. What is the official language of China?

Mandarin Chinese (Putonghua)

3. What is China’s population?

As of 2024, China's population is approximately 1.4 billion people

4. What is the currency used in China?

Renminbi (RMB), with the primary unit being the Yuan (CNY)

5. How big is China?

9.6 million km2
Question 1: Why is China considered a key player in the global economy?

Answer: China is the second-largest economy in the world, a global leader in manufacturing, and a major
player in international trade. Its vast consumer base, rapidly growing middle class, and cutting-edge
technology sectors make it a prime market for businesses worldwide.

Question 2: Why is it important to understand business culture when dealing with China?

Answer: Cultural nuances significantly impact how business is conducted in China. Success in negotiations,
partnerships, and long-term relationships depends on understanding key cultural practices like Guanxi
(relationship networks), hierarchy, and Mianzi (the concept of face/reputation).

Question 3: What are the risks of not understanding Chinese business culture?

Answer: Misunderstandings or a lack of respect for cultural norms can lead to failed negotiations, lost
business opportunities, or even damaged reputations. Navigating the subtleties of communication, respect,
and trust-building is crucial for building lasting partnerships.
10-10-2024 IBA International Business Academy 8
All collaborations are
about people and
therefore we also
need to try to
understand each
other as people.
Hofstede’s Cultural Dimensions Theory
 WHAT ARE THE KEY VALUES IN
CHINESE BUSINESS CULTURE?

• GUAN XI

• MIANZI

• RENQING
Personal relationships or connections
“It is not important what you know,
but who you know”
Western Network VS. Chinese Network
In China, guanxi penetrates all domains
How to establish and maintain guanxi
with Chinese parter?
Face (Mianzi, 面子)

• The Concept of Face:

Protecting one’s dignity and social

standing is extremely important in
Chinese culture. People go to great
lengths to avoid losing face, both for
themselves and others.

• Impact on Business:

Causing someone to lose face

(embarrassing them or openly
challenging them) can damage
relationships and business deals.
Praise and constructive criticism are
often given privately to avoid public
embarrassment.
Scenario:

You are in a business meeting with a Chinese partner,

discussing a potential collaboration. During the meeting, you
noticed several flaws in the proposal presented by the senior
Chinese manager, and you believe a better alternative could
be suggested.
Chinese people fight for paying the bill?
 Renqing (人情)

• Refers to the concept of reciprocity,

or the exchange of favors and the
mutual obligations that bind
relationships in Chinese culture. In
business, it often involves doing
favors or showing kindness with the
expectation that these gestures will
be repaid in the future.

• Renqing is part of maintaining

harmony and solidifying Guanxi
(relationships).
Gift Giving in Chinese Culture
 sònglǐ
送礼
In Chinese culture, gift-giving is not
only a way of marking special
occasions, like holidays and
birthdays, but it’s also used to build
and maintain business relationships
with others.
 What to choose?

Do choose the gift with proper price. Don’t give gifts in sets of four.
 Chinese gift giving taboos || Avoid these

送钟 sòng zhōng 梨 lí 伞, sǎn Lǜmàozi

（送终 sòng zhōng (离 lí) （散 sàn） 绿帽子
） leaving or parting” to separate the partner is
attending a funeral cheating
ritual
 How to wrap？

Do use the wrapping paper with Don’t write the gift card in red ink
bright colors such as red, yellow,
pink.
 How to give and accept？

Do give the gift with both hand. Don’t open the gift immediately
Tea time

“Qing!”
Why do Chinese people drink tea
in business meeting?
The origin of Chinese tea

Tea was discovered by ShenNong

and become popular as a drink
in the state of Lu

—The Classic of Tea

“茶之为饮，发乎神农氏，闻于
鲁周公。”
—《茶经》
 Shennong tasted hundreds of
herbs and he ate 72 poison
herbs someday，he found tea
to make himself safe and
sound.

— Shennong Ben Cao Jing

“神农尝百草，日遇七十二毒
Shennong ，得茶而解之。”

—《神农本草经》
 Development of tea

oblation medicine food drink

祭品 药品 食品 饮品

Western Zhou Spring and Autumn Warring States Han Dynasty

period period
西周 春秋 战国 汉
 Custom of Tea

China is a country with a

time-honored civilization
and a land of ceremony
and decorum. Whenever
guests visit, it is necessary
to make and serve tea to
them.
To express thanks to the elders on
one’s wedding day.
谢父母养育之恩
Pay respect to a master and seek for
knowledge.

拜师学艺
What do you know about
Chinese Tea?
 How to name the tea category?

1 2 3

hóng chá lǜ chá huáng chá

红 茶 Black tea 绿茶 Green tea 黄茶 Yellow tea

4 5 6

wū lóng chá hēi chá bái chá

乌龙茶 Oolong tea 黑 茶 Dark tea 白 茶 White
tea
 green tea
processing：Fixed（or de-enzymed） -Rolled -Dried

features： green soup, green leaves, clear, a bit

bitter, prevent cancer, lower blood low-density
lipoprotein, and total cholesterol levels

Longjing , Bi Luo Chun , Rain Flower

 black tea
processing:Fresh tea leaves -Withered -Rolled- Fully
fermented- Dried

feature:red soup, red leaves,sweet, mellow, reduce the

incorporation of cholesterol into mixed micelles

Qihong,Darjeeling tea
 dark tea
precessing

Fixed -Rolled -Pile渥堆 -fermented -Dried

features

rough,black brown,heavy smell,stimulate digestion

Pu-erh tea
 Oolong tea

Withered -Bruised (shaken)Partially fermented -Fixed -

processing
Rolled -Dried

sweet and fruity,but clear and woody.lose weight,protect

features
skin,make beauty,prevent tooth decay

Da Hongpao,Tie Guanyin, Oriental Beauty

famous tea
 yellow tea
processing Fixed -Rolled -Yellowed 闷黄-Dried

has a very yellow-green appearance , similarities in taste with

feature green tea, stimulate the appetite, prevent cancer

feamous tea Maojian, Huoshan Huangya

 white tea
processing
feature

silvery white,light yellow feamous tea

Withered -Air dried or
soup,fresharoma,protect
baked Re-fired Baihao Yinzheng
skin,reduce the risks of
cancers, heart disease
White Peony Tea

Shou Mei tea

茶具的构成
茶壶 Teapot
茶杯 Teacup
茶盘 Teaboard
茶托Teacup Holder
茶海 Warm pitcher
茶洗 Tea Wash
茶仓 Tea Canister
茶荷 Tea Holder

茶巾 Tea Cloth
茶夹 Tea Clip
水方 Water vessel
渣匙 Tea Spoon
Making Tea
 Hot Pot

烫壶

Faience ware pot 彩陶壶

Put in tea 置茶
Warm the cup

温杯
Wash the tea On high

悬壶高冲
Make tea in the low spot 低泡
Divide tea 分茶

Teacup and
fragrance-
smelling cup
Gongdao Bei
公道杯

teapot

Tea Tray
Offer the tea 敬茶
appreciating art
Look at the colour of the tea in teacup.

鉴尝汤色 （看 茶）
Smell the fragrance of tea
闻茶香
Drink the tea slowly to Savoring it.
品啜甘霖 （喝 茶）
Slightly bitter first, and then comes
the slightly sweet taste when you
breathe, the tongue and mouth get a
cool feeling. If it is strong enough, it
keeps coming back for a long while
and it is called 回甘
DOS AND DON’TS
IN CHINESE BUSINESS CULTURE
Wènhòu
问候 Greeting

Greeting is one of the basic functions of

communication and triggers positive
conversations. It helps us connect to
people at a more personal level.
Nín hǎo

Nǐ hǎo
How to greet your Chinese business partner?

A B C

D E F
• DOs • DON’Ts
• Shake hands or nod upon meeting o Bow or hug upon the first meeting

• Address seniority by an honorific title o Address elders using ‘ni hao’(‘Nin hao’

• Greet the eldest or most senior is more polite, formal and respectful)

person first o Offer a too-firm handshake

• They may greet you with applause. o Address people by their first name

Applause back and smile directly

Which way do people giving and
receiving Business Card in China?

A B

C D
Business card
• DON’Ts
– Deal or toss your business card
– Accept business cards with one hand
– Shove people's business cards in your
• DOs back trouser pocket

• Make your business card bilingual – Write comments on another person’s

business card
(English and simplified Chinese)

• Give it with the Chinese side up and

your name facing upwards

• Hold it with both hands as a sign of

respect
Huìyì
会议 Meeting
Meeting etiquette is a
standard set of behaviors
expected from attendees
during workplace meetings.
it encourages participants
to create a professional
environment with mutual
respect.
• DOs • DON’Ts
• If not sure, dress formally o Schedule a meeting during national
• Respect for elders and rankings holidays
• Follow the accepted meeting structure o Never gesture with a single finger
• Punctuality is considered a virtue in China o Make the hosting party feel “loose face”
• Stay composed and poised o Take an answer of “Maybe” as Yes
Chīfàn
吃饭 Eating

Meals and banquets are an

essential aspect of doing
business in China, used as a
setting to form business
deals, build relationships and
show respect.
10-10-2024 IBA International Business Academy 75
 Seat

Do arrive on time and wait to be Don’t sit until the guest of honor or
told where to sit. most senior member is seated.
 C E

A B

Mén

D F
Chopsticks
 Chopsticks

Do use the serving chopsticks to move Don’t place your chopsticks vertically
food to your bowl and your personal into your rice.
chopsticks for transferring the food to
your mouth.
Toast

“Gānbēi!”
 Toast

Do drink up all the alcohol in your glass Don’t hold your glass higher than the
when you hear “Ganbei” (cheers). senior or those who are of higher status
to clink.
 Paying

Do allow the host to pay the bill. Don’t show money in front of your
guests if you are hosting.
HOW CAN THE CHINESE NEW YEAR
AFFECT YOUR BUSINESS?

10-10-2024 IBA International Business 88

Academy
 Thank you!

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