Business Etiquette In China: Tips For Foreign Business Owners

Business Etiquette in the selected market: China

Discuss about the Business etiquette in the selected market.

In the age of globalisation, for improving customer base and having business growth in terms of productivity and financial profitability, organisations from different industries are trying to penetrate into the international markets by considering several unique business strategies. Similarly, Mary, a business owner of ‘The Aroma Shops’ in Wagga Wagga wishes to enter the market of China (as the products of the shop encompass chutneys, chilli sauce, jams and pasta) for transforming the individual capitalism into the global capitalism. For this reason, the study strives to provide some recommendations to Mary by understanding Chinese business etiquette so that, Mary can utilise those strategies for planning a favourable first impression while having a meeting with Mr Lau who is a manager of a popular China shop.  For dealing with Chinese business etiquette, the researcher focuses on the areas of potential cross-cultural miscommunication by using the Hofstede cultural framework.

Entering new market is always tricky and emerging business into the market of China with full of customers who think differently, speak an entirely different language and have different cultural norms can perhaps be appeared daunting from outside. For this reason, it is very important to understand the business etiquette of Chinese people before planning market entry strategy. Similarly, it is essential for Mary to have an in-depth understanding of the business etiquette in China before having a business communication with Mr Lau. According to the viewpoint of Shaw (2015), first impression and appearance are an essential Chinese business aspect and culture and thereby, people should not wear fashionable clothes but to wear simple and high-quality clothes for showing modesty and status.

Chinese people follow hierarchical manner while entering the meeting venue and therefore, head of the delegation usually enter the venue of meeting first. Further, it is worth mentioning that, the business leader always introduces the rest of the attendants before starting the meeting. Hence, it can be stated that, in the Western culture such as in Australia, a handshake in the business meeting is done in some of the firm manners while in China; people are expecting to have handshake in some short and soft manner. In regard to this, as opined by Pauluzzo & Shen (2018), Chinese people must greet each people present in the meeting with applause and it is expected that all individuals should applaud in return. Apart from this, in China, meeting always begins on exact time and thereby, foreign people needs to be punctual for having a successful business meeting onwards. Being late for the meetings is considered as rude in the aforementioned market.

Cross-cultural miscommunication

In continuation with the above discussion, it can be stated that an individual who is planning to have a business meeting in China from a foreign country needs to carry business cards written in both English and Mandarin language. Further, the business card needs to be shared in two hands with the Chinese counterpart as it shows respect towards the Chinese culture. Hence, it is worth mentioning that, an individual needs to use traditional Chinese characters if the person wants to develop own business environment particularly in Hong Kong or Taiwan.

Apart from sharing business card, it is worth mentioning that, Chinese people prefer to address one with his or her last name. Therefore, for a foreign business owner, it is essential to use last name or professional titles while addressing an individual in the Chinese business meeting. After having a business and to create a more positive business environment, people can exchange modest gifts with the individuals who are present in the meeting with two hands. This will turn probability into the possibility (Rashed & Nehsa, 2016).

Here, one of the aspects of having a more successful business meeting is not to break the silence of the meeting. According to the viewpoint of Yen (2017), a foreign business owner needs not to interrupt any kind of silence in the business meeting and thereby, let the leader or the host have the first word after a long silence.

In case of body language, Chinese people prefer to stay calm and controlled and therefore, they expect it from the foreign counterpart to show their self-control and respectfulness through their body poster. However, if the concept of the business is strong then to all the Chinese people business meetings are merely a deal signing opportunity (Mazanec et al., 2015). Therefore, for a foreign business owner, it is necessary to have a strong business idea for entering Chinese business market.

Different societies and lingua-cultures have a different set of tacit norms in case of interpersonal communication and that such differences matter a great deal in a business meeting with different culture. As opined by Bakir (2015), each culture has different set of behaviour, ethics, etiquette, expression and language and therefore, not having firm knowledge about the differences in culture across countries may lead to the unsuccessful business penetration into the target market. Hence, it can be stated that a common cross-cultural barrier is the use of language and this language barrier may come from the use of improper language in the cross-cultural business communication. As opined by Rallapali & Montgomery (2015), communication needs to be effective for making the business venture successful and therefore, effective verbal and non-verbal communication may mitigate the chances of cross-cultural miscommunication in the business economy.

Use of Hofstede cultural model

From this perspective, business ventures prefer to use Hofstede cultural model for understanding the differences in culture across countries while emerging into the international market. In this situation, the use of Hofstede model will help Mary to understand cultural differences between Australia and China. Having complete knowledge about Chinese culture during the business meeting may lead Mary to the peak of success.

According to Hofstede, values of workers depend on their perspective country’s culture and thus, business venture needs to analyse the culture for understanding the values. According to the viewpoint of Tabibi et al., (2015), Hofstede cultural model depends on the six primary dimension and gives us an in-depth understanding of cross-cultural differences.

Power distance index shows that all people in the community are not same and it reflects the degree of inequality amongst us. Australia scores low in the power distance index and it means that, in Australian organisations, managers prefer to engage employees in the decision-making for improving the effectiveness of the decision as well as motivating employees to show their creativity and higher level of skills. On the other hand, China scores high (80) in this power distance index and thereby, it can be stated that country believes that, inequalities among the communities are acceptable.

The individualism versus collectivism addresses the extent of interdependence a community usually maintains among the people. Australia scores around 90 in this condition and it reflects that managers expect employees to be self-reliant and display initiative towards decision-making. While on the other hand, China scores low and it shows that people in China prefer a collectivist culture where organisational staffs act in the collectivist interest and not for them.

The dimension of Masculinity versus femininity indicates to what extent a society is driven by success, competition and achievement. In this dimension, China scores 66 and it shows that employees are success oriented and driven (Rallapalli et al., 2015). Thus, impactful work culture, as well as direct gaining method, is acceptable in China. However, Australia scores 61 in this index and thereby, it follows masculinity orientation in the society.

Along with the above-held discussion, it can be stated that the other dimension of the model is the uncertainty avoidance that deals with the fact that, people cannot control the future. Chinese people score 30 and it means they feel comfortable in the ambiguous environment and thus, they are entrepreneurial and adaptable. On the other hand, Australia scores 51 and thereby, it becomes difficult for the Western people to deal with the ambiguous business environment of China.

In terms of long-term orientation, China scores 87 and it means that Chinese people are pragmatic in nature. Thereby, it refers to what extent the society feels hard to maintain challenges. On the other hand, Australia scores 21 and thereby, it follows normative culture.

In the final dimension which is indulgence, China scores 24 and it means that people are comfortable in restrained society. On the other hand, Australia scores 81 and it refers to an indulgent society in Australia.

From the above-held discussion, it can be noted that Mary should follow the different cultural aspect of China and thereby, she should not be late for meeting to create a first impression. Further, it will be beneficial for Mary, if she wears a simple and conservative dress while confronting Mr Lau. Hence, Mary can give a business card (printed in both English and Mandarin language) and moderate gifts to all the members in the meeting. Further, it will be beneficial for Mary to take an interpreter (as Mary is not able to speak in the Mandarin language) and she should not set any deadline for the business project.

Conclusion

In the ever-awaiting conclusion part, it can be concluded that China and Australia differ from each other in terms of culture and communication. Therefore, it is essential for a business venture to gain knowledge about the cross-cultural business etiquette before entering a foreign market. The entire study has provided significant knowledge about the Chinese culture and business etiquette. Therefore, it becomes possible for Mary to enter the target market effectively and efficiently by developing a significant business strategy.

Reference List

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