28 Nov The 3 Most Common Mistakes When Doing Business in China

Most of us who live and do business in China have noticed the confusing mix of highly modern, eye-catching architecture in the country’s largest cities with a strong adherence to traditional customs and beliefs. Here I would like to talk with a few examples of the most common mistakes Western people make when they start engaging in business in or with China:

1. Don’t take the word ”YES” literally in business dealings. Most Chinese executives will often nod and say ”yes” during such discussions but, in most cases, this is only a way of listening and showing courtesy rather than expressing full agreement with you. Real feedback usually comes after the meeting.
2. Don’t rush to get the deal done. One of the top mistakes I see is Western business people rushing to get the deal done. Please don’t! In the West it might be common practice to sign contracts quite quickly and get down to business. This is not always the case in China. Huge efforts are put into building relationships and most often it is not the security of signing a contract that will get things moving, but rather the feeling of knowing that the person you are working with is a reliable business partner.
3. Business casual is far from be fashionable in China. Business dealings are not done over a cup of coffee, in a pair of jeans. Chinese people take a formal approach to business meetings. They dress smart and although several people may turn up, it is the most senior person who will lead the negotiations. It is important to show that you understand their culture and that you respect them by taking an equally formal approach.

Any interesting mistakes you or your company has made when starting doing business in China?

Please leave your comments and advice in the comment section right below.

D.