Doing Business in China

Business practices in china Business friends relationship first do business later

The Chinese enjoy small talk and pleasantries. They want to learn more about you. Therefore, initial meetings are rarely expected to produce results.

Chinese salespeople routinely wine and dine prospects before they sit down to talk business. Let people feel that they are "connected" with you before you close a deal with them.

In America, where we feel that the legal system is largely enforceable, we can meet strangers and sign contracts with people quite speedily and start doing business. China is a people-based rather than a law-based culture.

People in China build trust by “profiling” one another. They observe one another’s behavior over time before they’ll do big business. This is why it takes longer to get things done there. This is also the reason why, if you bring your lawyers to China before you get to know your partner well, you may send the unintended and erroneous signal that you’re trying to outsmart him.

That does not bode well in the beginning of a relationship. The Chinese are perfectly willing to sign contracts; but only after people have achieved a reasonable level of comfort and understanding.

Business practices in china Business friends relationship first do business later