Introduction

China
China is believed to have the oldest continuous civilization. China has over 4,000 years of verifiable history. Beijing is the capital of China and is the focal point for the country. The official language is standard Chinese, which is derived from the Mandarin dialect. Most business people speak English. There are many dialects in China however there is only one written language. There government is Communist, the promote atheism although the constitution guarantees freedom of religion.
China is the most densely populated county in the world with approximately 1.17 billion people as of 1992. Almost 100 percent of the population are ethnic or Han Chinese. There are strict rules regarding childbirth and each couple is limited to only one child.

Appearance in China Conservative suits for men with subtle colors are the norm. Women should avoid high heels and short sleeved blouses. The Chinese frown on women who display too much. Subtle, neutral colors should be worn by both men and women. Casual dress should be conservative as well. Men and women can wear jeans. However, jeans are not acceptable for business meetings. Revealing clothing for women is considered offensive to Chinese businessmen

Behavior & Manners in China

Do not use large hand movements. The Chinese do not speak with their hands. Your movements may be distracting to your host. Personal contact must be avoided at all cost. It is highly inappropriate for a man to touch a woman in public. Do not point when speaking. To point do not use your index finger, use an open palm. It is considered improper to put your hand in your mouth. Avoid acts that involve the mouth. Gift giving is a very delicate issue in China . It is illegal to give gifts to government official however; it has become more commonplace in the business world. It is more acceptable to give gifts either in private or to a group as a whole to avoid embarrassment. The most acceptable gift is a banquet. Quality writing pens as considered favored gifts. The following gifts and/or colors are associated with death and should not be given: * Clocks * Straw sandals * A stork or crane * Handkerchiefs * Anything white, blue or black Always arrive on time or early if you are the guest. Do not discuss business at meals. Do not start to eat or drink prior to the host. As a cultural courtesy, you should taste all the dishes you are offered. Sample meals only, there may be several courses. Never place your chopsticks straight up in your bowl. By placing your sticks upright in your bowl your will remind your host of joss sticks which connotes death. Do not drop the chopsticks it is considered bad luck. Do not eat all of your meal. If you eat all of your meal, the Chinese will assume you did not receive enough food and are still hungry. Women do not usually drink at meals. Tipping is considered insulting, however the practice is becoming more common.

Communications in China Bowing or nodding is the common greeting; however, you may be offered a handshake. Wait for the Chinese to offer their hand first. Applause is common when greeting a crowd; the same is expected in return. Introductions are formal. Use formal titles. Often times Chinese will use a nickname to assist Westerners. Being on time is vital in China. Appointments are a must for business. Contacts should be made prior to your trip. Bring several copies of all written documents for your meetings. The decision making process is slow. You should not expect to conclude your business swiftly. Many Chinese will want to consult with the stars or wait for a lucky day before they make a decision. Present and receive cards with both hands. Never write on a business card or put it in your wallet or pocket. Carry a small card case. The most important member of your company or group should lead important meetings. Chinese value rank and status. Allow the Chinese to leave a meeting first.
Top Ten Cultural Rules for Doing Business in China 1. Form a connection with someone who has first hand experience conducting business and developing strategic relationships in China. 2. When in China, cultivate contacts with many people in order to find the right decision makers. 3. Knowledge of the culture and language is key. Even basic understandings will go a long way and your hosts will appreciate your initiative. 4. The Chinese are very keen about exchanging business cards. Bring plenty with you to business meetings, preferably ones written in English on one side and in Chinese on the other. Learn how to present them to your Chinese counterparts. 5. Avoid the word "no" in your business dealings. "Perhaps," "we'll see" and other ambiguous words are more appropriate. 6. Humility is a virtue in the Chinese business culture. In most instances, exaggerated claims will be discounted. 7. Expect long and arduous negotiations, even at the very end. 8. Be prepared and be patient. Accept the delays that may occur. The Chinese prefer to establish strong relationships before closing deals because of the lack of a strong legal system to enforce contracts. 9. Before establishing a formal business relationship, understand the difference between a Joint Venture (JV), a Wholly Foreign Owned Enterprise (WFOE) and a Representative Office (RO). 10. Keep an open mind for new and creative opportunities.

The Business Meeting
No surprises:
Make sure that what is to be discussed is made clear beforehand.
Don’t be late!
Punctuality is considered a virtue. Guests are greeted upon arrival by a representative and escorted to the meeting room; hosts are expected to be in place before guests arrive.
To the right:
The principal guest is usually seated to the principal host’s right, on a sofa or chairs opposite the door.
What’s in a name?
Names are very important to the Chinese and you must establish how to address someone during your first meeting. Chinese surnames come first, not last.
Call a Chinese person by the surname; followed by a title such as Mr. (Xiansheng) or Miss (Xiaojie) For example, Mr. Wang would be Wang Xiansheng, or even Wang Zong, i.e. Director Wang.
Business cards:
Have a plentiful supply, you’ll need them!! Business cards should be exchanged at the beginning of a business meeting. Try and have one side of your card in Chinese and you will score extra points. If you don’t have a Chinese name, ask someone you like to help you choose one!
On accepting a business card from your Chinese colleague make sure you use both hands to receive it and show your interest by taking some time to read the details of the card.
Putting the card immediately into your wallet or briefcase without reading it is an unforgivable insult to the Chinese business culture.
Don’t forget the small talk!
Avoid the temptation to disclose your strategy at first. Start out with general observations or questions. Chinese like to take their time getting to know you, getting a feel of who you really are.
Wining and dining often comes first. This is all part of the guan xi building process or making ‘connections’, crucial before getting down to the nitty-gritty. Deals are rarely closed on first meetings.
Speaking:
Speak slowly and use short sentences.
Do not become agitated if there are pauses in speech on the part of the Chinese. This is an accepted custom and the pauses are a sign of measured and considered thought in Chinese culture.
Do not expect an immediate reaction from your Chinese colleagues. The Chinese like to consolidate their position in a measured and considered fashion.
Also, avoid slang and colloquialisms; it is unlikely you will be understood.
Do not interrupt:
Remember who holds the floor and do not interrupt the speaker.
Never put anyone on the spot:
Always offer a way out so your counterpart can preserve face.
Just saying No:
Actually, never say NO, try and find more indirect ways of saying it, such as, ‘I will have to look into that, or, I am not sure we could do that.
Saying Yes:
Chinese people have a habit of saying "yes", or nodding their heads, to show that they're paying attention or that they're following what you say. In such a context, the word "yes" does not mean that they agree with what you say or with your terms.
Have a good interpreter:
This can help you immeasurably in China. But make sure you have thoroughly briefed your interpreter beforehand and make sure he/she understands any special technical words you might use.
Always talk to the host, never directly to the translator.
One-on-one:
Chinese people tend not to express what they have in mind in public. But when they're with you on a “one-on-one” situation without other people around, they're direct and straightforward.
If you want to know the truth — and how you can successfully do business with your Chinese partner/supplier — learn to pull people aside and talk with them privately.
Ongoing:
If you have an ongoing relationship and need someone in your firm to represent you, make sure you introduce them in person to your Chinese counterparts.
The Chinese place great emphasis on personal introductions as the basis of trust.
Miscellaneous:
Colors:
Avoid White; it is the color or mourning. Red, suggests power, prosperity and authority, and is the preferred color in China.
Numbers:
The numbers 4 and 14 are very bad and mean death. 3 means longevity and 8 means wealth/prosperity.
Let them smoke:
There are 350 million people who smoke in China. They consume 1.8 trillion cigarettes each year, or one-third of cigarettes smoked worldwide. Many Chinese consider smoking, usually among men, the right thing to do in a business environment. Let them do it!.
Most Chinese strategies and tactics are based on three concepts:
1. There is rarely a good reason to let your competitor know what you are doing, and there may be very good reasons to mislead your competitor as to your intentions
2. Do not play the competitor's game. Instead find out where your competitor is weak and attack them there.
3. Determine your competitor's tactics, just because someone is being friendly does not mean they should be trusted - they may have ulterior motives.

Words in Chinese 1) Greeting - Hi! Ni3 hao3! 你好 2) Good Morning- zǎo shàng hǎo/ zǎo 早上好/ 早 3) Good Evening - ! Xia4 wu3 hao3! / Wan3 shang4 hao3! 下午好！/ 晚上好！ 4) CEO- tzyr shing tzan 5) Client- kerh hu

References 1) http://www.linguanaut.com/english_chinese.htm#ixzz2rcGRwO3q 2) http://www.chinasavvy.com/toolbox/chinese-business-etiquette.php 3) http://uschinabiz.com/TopTens/ChinaBusinessCulture.aspx 4) http://www.cyborlink.com/besite/china.htm