01-15

Tips for Doing Business in China

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China Tips

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Tips for Doing Business in China


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● 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


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● 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


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● 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


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● 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


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● 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