Tips for Doing Business in China

● Relationships, but not networking
● Relationship matters the most
● Networking is important
● Networking is the key to business success
● Build good relationship with your clients and people in the government

● Building relationships
● Build good relationship with your clients in the government
● Business is done mostly through ‘Guan Xi’, which means relationships/networking. So find the right person of influence to get your trusted
● Never underestimate “Guan Xi”–connections, networks. You need to be dealing with a person of influence
● Hire local representatives/consultants to monitor deals and relationships
● Dinners and drinks
● Entertainment
● Being a good person
● Don’t be too aggressive

● Do it with the government
● Be ready to drink a lot of alcohol
● You have to drink a lot
● Be prepared to drink 5% white wine
● You have to train yourself to be good at drinking especially if you do business in northern China

● People make business deals on dinner table
● Accounting system is not well developed–be careful!
● Know the different characteristics of people from different provinces
● Be very flexible
● Follow your boss
● Don’t fight for bills
● Keep an eye on policy changes in the financial market so as to lower risks
● Be humble

● Understand local culture (learn local language)
● Respect face
● Understand the ways of saying “no”, since Chinese almost never say it directly
● Respect face. Never argue or voice a different opinion with anyone directly
● Use the same due diligence you would in the west so as to protect your intellectual property
● Show a lot of gesture of goodwill
● Governments play an important role