Business Etiquette in China: Analysis Based on Literature Review

Abstract

Misunderstandings can easily risk any business deal in China. For novices beginning to come up to China, the long list of cultural dos and don’ts reasonably brings some shivers. Those new to China are told that they must understand the complex web that makes up a guanxi network, appreciate the tones in the Chinese concept of “face,” and be told about the refinement of Chinese communication styles. Even experienced people from China who probably understand the need to develop cross-cultural awareness and skills for doing business in China, find it difficult to determine how to develop those skills and which ones are the most essential. Along with comprehending key cultural concepts, it is important to understand cultural differences – particularly verbal and nonverbal communication styles – because so much misunderstanding shoots from misinterpretation of cues and gestures. It is equally important to know the nitty-gritty of Chinese etiquette, from proper banquet behaviour to gift-giving and business card exchange. It becomes all the more vital since the India-China trade and investment relations have expanded rapidly over the past few years signifying their potential and reciprocity. The present study focuses on business etiquette in China and its importance with regard to forming an impression of an individual or a firm. The focus is limited to exchange of business cards, titles used in the country, dress code, gift giving, meeting etiquette, and negotiations. A review of available literature has been done in order to understand how etiquette plays an important role in business dealings in China. The findings of the paper implicitly point out that the business attempts in China largely depend upon certain nuances of etiquette. The paper also suggests an action plan that can be conscientiously followed with regard to etiquette in China. Based on literature review, the paper makes specific recommendations with regard to observing certain business etiquette in China; and is an attempt to highlight the fact that there are complete chances of making or marring an impression in China if the major aspect of communication i.e. etiquette is ignored.