Here are a few practical guidelines to help you get started:

1/ Dispel mistrust (on both sides)

Due diligence would be ideal, of course, but the problem that arises concerns the veracity of the data, which in China is unreliable, not very transparent, often inaccurate (to put it mildly) or completely unavailable. Therefore, due diligence has its limits.

For their part, the Chinese are used to displaying and manipulating falsified figures, and they will have zero confidence in the information and figures we pass on to them.

In their eyes, presentations, brochures and reports are nothing more than disguised advertising and pointless commercial propaganda.

2/ Trust must be established between individuals (rather than between companies)

It’s this personal relationship that becomes essential, and ultimately the cornerstone of the negotiation.

Here’s a piece of advice one hears frequently in Asia: “First make friends, then do business.”

3/ Get to know each other better

In what way? All unofficial opportunities to spend time together are worth seizing: invite your professional acquaintances to a restaurant, clink glasses without restraint (“Gan Bei!” = Bottoms up! or drink to your limit if possible), eat and have fun together without holding back, for example at Karaoke or a massage.

But be careful, because this is where they’ll judge you and gauge your reliability.

Don’t forget that under the influence of alcohol, your true personality will be revealed… It’s a necessary step if you want to break down barriers and go further with these professional relationships.

The Chinese are generally suspicious of people who don’t drink: what are they trying to hide? What are they afraid to reveal?

4/ Pass the tests

During their interactions with you, your professional acquaintances will try to tick the following boxes:

• Are you a conscientious person?

• Are you sincere? Will you keep your word?

• Will you be a reliable partner? Can we trust you?

• Do we need to go further in our attempts to forge closer ties?

• Do you really want to do business with us?

In Chinese culture, observing rituals and following traditions are the keys to establishing harmonious, stable relationships.

It’s your behavior that will be scrutinized, and to let that happen you’ll have to abide by certain rules and rituals. You will need to familiarize yourself with these, and they will quickly become habits:

• Know how to greet others in China

• Know how to use business cards correctly

• Know how to observe the rules of politeness (“Face” is an essential concept to master in Asia)

• Communicating appropriately: how to avoid saying No; how to understand and interpret Yes

• Be aware of and respect the hierarchical structure, and understand how the Guanxi world (of professional relations) works

• Know how to behave in meetings

• Know how to behave at business dinners and banquets

• Be skillful in the art of compromise

• It is crucial to be patient and not jump to conclusions: let time take its course

• Have a genuine interest in Chinese culture and traditions

Remember, too, that it’s important to stay calm and composed in all circumstances, and not give in to provocation or anger, because your Chinese acquaintances might also test you to see if you’re able to control yourself.

Activate the Guanxi

In fact, the quickest (and most effective) way to create connections and spark initial trust is to put into practice the operation of Guanxi (professional networks) by activating your own personal networks, or by turning to institutions such as consulates, chambers of commerce, professional associations and any other people whose contact details you may have been given.

All these “intermediaries” based in Asia have numerous local business contacts and a well-stocked personal address book, and can be invaluable to you with their advice, but above all because they will open many useful doors for you, if you take the trouble to approach them and get them involved.

Moreover, the Chinese are very keen to copy successful leaders, so if you have prestigious customers (listed in the Fortune 500), don’t hesitate to cite them as references.

“If Apple is a customer of yours, it’s because your product is the best” …. For a Chinese person, there’s no need to hesitate if even Apple trusts you…

Some nuances, due to anti-corruption policy

It’s worth noting, however, that the situation in China is evolving, thanks to recent new measures taken by the Chinese authorities since President Xi Jinping stepped up the fight against corruption.

Today’s Chinese officials have become completely paranoid and will refuse anything that even remotely resembles an attempt at bribery; so no more expensive gifts, no more invitations to dine in prestigious restaurants, and you can forget Gan Bei, Karaoke and massages… Negotiations with administrations have become very complicated.

However, in the private sector, it’s a different story: the methods used by private companies to build closer links haven’t really changed yet, as long as everything remains discreet. Folk probably drink a little less, especially to preserve health.
The introduction of “Social Credit” is also likely to change the behavior of Chinese businessmen and expatriates living in China, and above all of companies, whether Chinese or foreign.

Social Credit is a system for assessing “social conformity”, giving an overall score that measures behavior in practice. The result: privileges for people with a “good” score and penalties for a “bad” score.

It would be wise to keep a close eye on these developments, given the confusion that reigns in today’s socio-political-commercial relations around the world.

To find out more about Chinese culture and how to build trusting relationships with your Chinese partners, while keeping abreast of the latest developments, register for our next intercultural training session “How to work with China”.

This training can be organized in-house, over several days, face-to-face or remotely, and adapted to your company’s specific needs (contact us).