Understanding culture and business in China

Author
Foodcom Experts
09.08.2024
3 min reading
Understanding culture and business in China
Summary
Table of contents
  • Foodcom S.A. is betting on adapting to Chinese business culture by developing a dedicated website and participating in CPHI China 2024.
  • Understanding Chinese values such as harmony, hierarchy, face (mianzi) and guanxi is key to building strong business relationships.
  • Punctuality, formal greetings and subtle and indirect communication are important in Chinese business etiquette.
  • Foodcom S.A. adapts its communication strategy to the specifics of the Chinese market in order to effectively develop cooperation with local partners.

As one of the largest and fastest-growing global markets, the Chinese market is a key point of interest for companies from various sectors. For companies such as Foodcom S.A., operating successfully in this area is not only a matter of expansion, but also the ability to adapt to a unique business culture governed by its own laws.

“Our recent activities, such as the launch of a dedicated website for Chinese business partners and participation in CPHI China 2024, demonstrate our commitment to long-term relationships. In doing so, we are increasing our presence in the Chinese market and demonstrating the importance of effective cross-cultural communication. This is not only an asset, but also an essential skill for building strong and mutually beneficial business relationships.” – says Lukasz Klazynski

Understanding the Chinese cultural context

Zrozumienie chińskiego kontekstu kulturowego

To operate effectively in the Chinese market, it is essential to have a thorough understanding of the business culture there, which is based on several key values that influence decision-making and communication.

Harmony in Chinese business culture means avoiding open conflict and seeking compromise, which is key to maintaining stable relationships. In practice, this means that negotiations can take longer and communication is more indirect, avoiding direct criticism so as not to damage harmony and lose face.

Hierarchy is deeply ingrained in Chinese culture and influences how decisions are made and how employees interact. Decisions are often centralised and taken by the highest levels of management. It is important to take hierarchy into account and adjust communication in business dealings accordingly.

Face (面子 – “mianzi”) refers to a person’s prestige, reputation and honour. Preserving it is extremely important, and losing it can have serious consequences. In a business context, taking care of one’s face means making careful decisions to avoid the risk of losing prestige and communicating in a way that minimises the risk of public humiliation.

Guanxi (关系) is a network of personal relationships and connections that plays a key role in Chinese business culture. Guanxi is about building mutual commitments and exchanging favours, which is an advantage in developing business opportunities. In practice, it means investing time and effort in establishing and nurturing relationships that can facilitate negotiations and business based on trust and mutual respect.

Business etiquette in China

Etykieta biznesowa w Chinach

In Chinese business culture, etiquette plays a key role in building and maintaining positive relationships. Punctuality is highly valued here. Arriving a few minutes early for a meeting is a sign of respect and commitment. Being late can be seen as a lack of interest and respect for others’ time.

Greetings in China are formal. When meeting for the first time, you should introduce yourself with your full name and title, such as “Mr Zhang” or “Director Li”. A handshake is acceptable, but adjust the intensity of the greeting according to the response of the interlocutor. The exchange of business cards is an important ritual that requires special respect. Business cards are handed and received with both hands, and you should take a moment to study them before putting them down.

Communication in China is often subtle and indirect, with an emphasis on maintaining harmony. Direct confrontation and aggressive behaviour are not advisable. Instead, listen carefully and pay attention to subtle signals and body language to better understand your partner’s intentions. During business meetings, it is important to follow the traditional seating arrangement.

The most senior person usually sits opposite the entrance. Meetings should be well organised and conducted in an orderly manner, which shows professionalism and respect for Chinese partners. Patience and flexibility are essential during negotiations, which can be lengthy. Chinese business culture values compromise and the pursuit of harmony, so aggressive negotiating tactics may be poorly received.Giving gifts is a common practice in Chinese business culture and serves to build relationships – a sign of goodwill and respect. Gifts should be modest but thoughtful and given with both hands. Avoid gifts with negative connotations, such as watches or sharp objects, so as not to offend your partner.

Communication initiatives of Foodcom S.A.

In order to meet the demands and expectations of our Chinese business partners, we decided to adapt our communication strategy to the specific characteristics of the Chinese market. As part of this effort, we have implemented several important initiatives to strengthen the relationship with our local partners and better understand their needs.

New website dedicated to Chinese partners

We have launched a new website aimed specifically at our Chinese business partners. The website has been designed with local aesthetic and cultural preferences in mind. All content is available in Chinese, making communication much easier and enabling our partners to fully understand the products and services we offer. We focus on aesthetics that meet local expectations to convey a positive image of our company in the eyes of our Chinese partners.

Participation in CPHI China 2024

Another key activity is our presence at CPHI China 2024, one of the most important events in the pharmaceutical industry. Participation in the fair gives us the opportunity to meet directly with potential Chinese partners and customers. It is also an excellent platform to present our product and service offering to a wide audience, which significantly increases our visibility in the Chinese market. Face-to-face meetings at trade fairs are key to building trust and long-term business relationships.

By launching our own website and actively participating in CPHI China 2024, we are effectively adapting our communication strategy to the Chinese market. These initiatives demonstrate our commitment to understanding local cultural realities and meeting the specific requirements of the Chinese market. Through these actions, we are building strong, mutually beneficial relationships and increasing our presence in a rapidly growing market.

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