Negotiating Business in China

The other day I received some designer letterhead from a friend of mine who does business in China and travels a lot around China. They also sent me some sample company letterhead for their new business they planned on opening in the fall. Needless to say I was touched by the gift and amazed at the new design and letterhead they were considering for their business. It looked terrific and I encouraged them to send out more samples as a way of enticing prospective clients (they own a print shop business).

Business Gift Giving Etiquette: Their gift reminded me of how important it is to honor business gift giving traditions and customs in other countries. Gift giving in the business world is actually a long standing tradition within the Chinese culture.

Interestingly enough, the official policy in Chinese business culture actually forbids businessmen from giving gifts, as this is often perceived as a form of bribery. Knowing this is important. While it was ok for my friend to send me a gift under the guise of sampling their new letterhead, I could not necessarily do the same as it is likely my gift would have been declined. Fortunately in recent years many businesses are relaxing in China somewhat with respect to gift giving. Nonetheless, the subject is still a touchy one thus if you plan to do business in China you should proceed with caution.

With its long history, the Chinese have developed a plethora of gift giving etiquettes. If you do plan on exchanging business gifts, here are some tips to consider to keep things discrete: * Consider offering gifts privately and offer the gift as a token of friendship rather than for business purposes. * Typically Chinese people decline to accept a gift three times as a show of modesty. Be sure you insist for three times and then express your gratitude once they accept the gift. If you are offered a gift, you should do the same. * Keep in mind it is ok to offer a gift to an organization rather than to individuals within the organization if all business negotiations are concluded and the gift is from the company you are representing. * Consider wrapping gifts in red as this is a symbol of luck in China.

Remember, the Chinese people have ingrained in their culture the drive to have good health, fortune, and luck. Those phrases are written in many texts and is used in Chinese New Year and even everyday greetings. So keep that in mind when considering gifts for Chinese friends.

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