Business etiquette a Chinese principle

The Life: Every country has its own way of conducting business, and China is no exception. Barbara Wang, programme director and China representative of Ashridge Business School, and co-author of "Chinese Leadership" discusses the differences, and similarities to doing business in the Middle East.

Barbara Wang is a programme director of Ashridge Business School the and co-author of Chinese Leadership. Eleanor Bentall / The National

Different areas of the world have their own ways of conducting business and China is no exception.

It is already the world's second-largest economy and expected to become the biggest by 2030, which means even more people will be doing business there.

Here, Barbara Wang, a programme director and China representative of Ashridge Business School the and co-author of Chinese Leadership discusses the differences and similarities to doing business in the Middle East.

How strongly does culture influence the way business is done in China?

Cultural aspects are of enormous significance when doing business in China, absolutely critical. There are no clear boundaries between business culture, social culture and even political culture, lines blur across each aspect.

Is there anything that happens in business meetings that may surprise people based here?

Meetings in China tend to be very formal. Listening skills are deemed of great importance and everyone will listen to the most senior people in the room before taking it in turns to speak in return. If present, foreign attendees would usually be given the opportunity to speak first. In a peer group meeting the position of the attendees will denote how responses and feedback are shared. Conversely there are some similarities with business meetings in the Middle East.

What are they?

Attendees may take calls on their mobiles or check emails during the meeting. The hierarchy and status of those attending will again determine how much of this takes place. Mobile phones are usually switched off in a first-time meeting with someone more senior than the host.

Should you bring a gift if meeting someone for the first time?

A gift would be expected and appropriate to bring to a business meeting in China and is likely to be reciprocated. A small gift typical of the Emirates would be ideal. At a first meeting in China you could expect to receive a natively produced item such as silk products or chopsticks. If the relationship is formalised, gift giving in meetings is likely to continue with higher-value objects.

What can you do during a meeting to build your relationship with someone from China?

Do your research about who is going to be in the meeting, what their title is and their responsibilities very thoroughly and consider this in your behaviour during the meeting to ensure you are aware of hierarchy. Chinese do use the titles and surnames, therefore do not address anyone by their first name. Rather, use their job designation and surname when addressing the person in question.

Is there anything else you need to know about doing business there?

The notion of guanxi is a much more complex idea than the western concept of networking, akin to [the Arabic] wasta. It is the platform for social and business activities in China and consists of connections defined by reciprocity, trust and mutual obligations. Build up your guanxi and be aware of the dynamics of guanxi around you before anything.

* Gillian Duncan