Location: Eastern Asia, islands bordering the East China Sea, Philippine Sea, South China Sea, and Taiwan Strait, north of the Philippines, off the southeastern coast of China

Capital: Taipei

Population: 22,858,872 (July 2007 est.)

Language: The official language of Taiwan is Mandarin Chinese, but because many Taiwanese are of southern Fujianese descent, Min-nan (the Southern Min dialect, or Holo) is also widely spoken.

Lifestyle & Aspirations
Taiwan has now one of the most prosperous economies in Asia. Education standards are high and education is highly valued. The Taiwanese are very industrious and frugal though they will save up for items of high value. Taiwanese people are keen to improve their quality of lives and value hard work.
With the establishment of the five-day week, more people have time to pursue leisure activities. Taiwan offers active recreational opportunities for the more ambitious, like mountain climbing, hiking, fishing, camping and other activities. In the warm summer months there's dragon boat racing as well as other water sports and activities such as whale and dolphin watching, snorkelling, white water rafting, wind surfing and surfing, while airborne sports such as hang gliding and paragliding are also enjoyed. Golf is a preferred sporting pastime of Taiwanese businessmen.
Basketball is one of the most popular team sports, played indoors away from the changeable weather. Martial arts are widely practiced. The arts are also popular, a mix of traditional Chinese arts and crafts like painting, calligraphy, ceramics, dance and music, and local arts as Taiwan forges its own cultural identity.
In the cities, society centres around shopping in the many lavish malls, and eating out. Taipei is peppered with good restaurants, from cafes and tea houses to gourmet international establishments. Dining out and entertaining are important aspects of city life.
Taiwan produces some fine films though they are often more successful overseas. Local film?makers often have to go abroad to work. Perhaps Taiwan's most famous export in the film world is Ang Lee, director of Crouching Tiger Hidden Dragon, Eat Drink Man Woman, Sense and Sensibility and Brokeback Mountain.
Religious beliefs are important to the Taiwanese but they will often take what appeals to them from various religions. Family and friends lie at the core of people's lives and great loyalty is shown to them.

The Essentials (10 Key Tips)
1. Taiwanese thinking has been influenced by their religions and philosophies like Taoism and Confucianism, which seek harmony. Rather than seeing many situations as an `either', `or' choice, they will seek combinations and balances of various factors.
2. The concept of `face' is important and generally means that individuals should neither cause others to lose face nor lose it themselves.
3. Modesty is important for the Taiwanese. Speak about your company's achievements rather than your individual ones.
4. Age is revered. Older people must always be treated with respect, complimented on their health and deferred to. Any negotiating team should include somebody senior.
5. The concept of `guanxi' (connections) is important in this society. Ties of family and friends are paramount and the bonds are strong. Retain the services of a respected local agent or partner to help navigate through local laws and also to develop "guanxi" for you.
6. Business cards are necessary as they show your rank and importance. Make sure you take plenty when visiting Taiwan.
7. The Taiwanese are given to making generous and flattering comments about visitors. These compliments are part of interpersonal communication and are not intended as 'tactics'. Play them down in a modest way at first, then accept graciously.
8. Be prepared to negotiate with groups rather than with individuals and do not be in any rush. Patience is very much a virtue for the Taiwanese.
9. The Taiwanese are good negotiators and will seek to drive a hard bargain. They respect others who are comfortable in the art of negotiating and who do not fall quickly into compromise.
10. Be on time and well dressed - it is a sign of respect.

Working with the Taiwanese
There are several basic notions held by the Taiwanese which are part of the Chinese approach and philosophy. One is guanxi - or the close ties of family and friends and the loyalties that go with them. These are most important in business and should be respected. When building relationships, take note of the idea that friendship is to be valued. Another is the concept of `face', which applies all over the Asian and Arab worlds. Displays of impatience or temper will be greatly frowned upon and will involve a loss of face for anyone on the receiving end and also, in their view, a loss of face for the person who has lost control.
Several values shared with those on mainland China include modesty and tolerance, courtesy, patience, moderation and harmony. Many of the ideas which prevail today are derived from the teaching of Confucius. Respectful, orderly behaviour will be expected and will also win confidence. Having said this, the Taiwanese appear to be more spirited than mainland Chinese, thanks to their history of rebellion, and are entrepreneurial and ambitious. They can be suspicious of foreigners but at the same time, value their input.

Making a Good Impression
Visitors to Taiwan should appreciate the importance of the notion of guanxi in the business world, using contacts and links which are forged from schooldays onwards. Loyalty and harmony count for much. Time and energy must be spent in building relationships and trust.
Politeness and restraint in personal relationships is key as is saving face and not causing embarrassment or discomfort and showing respect for seniors. High pressure sales tactics should be avoided, and you should never press someone for a direct answer (especially if it's likely to be 'no'), but rather, learn to read between the lines. Avoid delicate subjects like the political situation with China unless you feel sure that a discussion would be welcomed.
Business entertaining should be taken seriously and the correct protocol followed. Learn to use chopsticks and learn the rules of table etiquette.
Respect should be shown by being smartly dressed, punctual and well prepared for business meetings. Be reliable and follow up on matters that need your further attention.
Visitors to Taiwan should understand the Taiwanese ritual of paying compliments. If someone compliments you, you should insist that you are not worthy; modesty is an important attribute here.

Business Etiquette
Business Cards
Business cards are commonly used and you should expect to get through hundreds on a visit to Taiwan. A card is absolutely critical to the Taiwanese, so they can place you in context.
Cards should be presented with both hands. Doing so indicates that you are presenting the fullest extent of yourself. When receiving a business card, bow slightly in acknowledgment and put it into a smart business card case to read later. Do not put it in a back pocket - which may suggest that you may wish to sit on that person! Include not only your name but your job title on your cards so the Taiwanese can assess your rank. A list of qualifications may, however, be seen as a display of vanity and modesty is greatly valued in this society. Include a translation in Mandarin on the reverse side of the card, ideally in raised gold text. Beware of red ink which has negative connotations.

Body Language
Taiwanese communication style is high-context and studying body language is an important way of understanding what your counterpart is really saying. Physical movements in Chinese society are subtle rather than flamboyant. Show respect by exercising physical restraint. Staring into someone's eyes for too long is considered disrespectful, as is touching them while talking. Physical contact is usually reserved for friends and family. Many live in crowded conditions and they value their personal space and privacy. Keep a good distance - say a metre - when you are in discussions with them. Maintain an upright bearing and do not point with one finger. Don't touch children on the head and do not point your feet at someone.

Communication Style
The Taiwanese are polite and respectful and will often pay people compliments. Their communication style is high-context and subtle. Any aggressive or boastful behaviour will not be well received and will create suspicion. Do not be afraid of silences - Westerners can often seem to talk too much. Nor should you try to hurry discussions. Remember that the concept of `face' is very important and must be maintained in both parties.

Gift Giving
The Taiwanese are usually good and generous hosts. Giving gifts is an important part of business life. Gifts may be quite lavish and you should reciprocate with something of similar value. Make a business visit armed with several gifts, so you won't be caught short.
Something from your own country, or spirits, or for a home visit, chocolates are appropriate. Clocks should be avoided - in Mandarin the phrase `give a clock' sounds like attending a funeral. Giving a handkerchief can also imply that someone is going to cry soon. White, grey and black are associated with funerals, red is lucky - though red writing is associated with making a protest, pink and yellow represent happiness and prosperity. Sets of four also represent death.
Gifts are usually not opened immediately - to do so implies greed. A gift should not be opened in front of the giver (to save face all round) and should be refused three times, as a sign of modesty.

Business Meeting Culture
Before the meeting
Meetings should be planned in advance but you will need to allow more time and give more notice if you are dealing with government officials. People in private enterprises will be more readily available. Be well prepared with all the facts and figures you may be called on to supply; a thorough knowledge of your own company, product and competition is essential.
Let your counterparts know what you want to achieve in the meeting. One-to-one meetings are more unusual than they are in the West. Find out who you will be meeting and the relative status of the people in the group, and offer the Taiwanese the same information about your own party in return. Establish whether you will need an interpreter (you almost certainly will) and if you do, schedule extra time for the meeting.

During the meeting
Meetings with Taiwanese will initially be about getting to know each other and will always start with small talk over refreshments. Expect the most senior person in the group to do the talking. Seating will be arranged according to hierarchy and the most senior person should sit facing the door.
Maintain politeness at all times and never show aggression or irritation; embarrassing anyone which will cause them and you to lose face. Bragging or ostentatious behaviour will be frowned upon. Show great respect to the most senior person of the team.
Be aware that rather than say `no', your counterparts may only remain silent or be evasive.

After the meeting
Decisions may be taken slowly and any pressure to sign a contract may not be well received. Follow up in writing what was said and agreed at the meeting. Be aware that you should set artificial deadlines if you are going to impose time limits for work, as the Taiwanese will regard deadlines as guidelines only. Expect negotiations to continue after a contract has been signed.
Your counterparts are likely to invite you out for an evening. It is essential to accept; during the evening and while alcohol is being drunk, they will continue to assess you as someone they may want to do business with. You should return the invitation at a later date.

Motivating Others
Confucian tradition does not include the desire for great wealth and fame, but there are many different factors motivating Taiwanese workers. Confucius aside, wealth, status, achievement and respect of others are all signs of success and society is fairly materialistic, with gadgets, cars and home ownership all prized, so money is a serious motivator.
Great displays of emotion are frowned upon, as is showing off, so a person may be motivated inside by a promotion, or recognition by superiors, but not actually show it, preferring to appear self-deprecating instead. It is common for Taiwanese to imply that they are not worthy if somebody pays them a compliment, which Western managers should bear in mind.
It has been suggested that because of the importance to the Taiwanese of a sense of belonging to a group, the welfare of the group is important to the individual, but this is too simplistic. Self-interest and reward, with the additional burden of saving face, are just as important.
In middle management and larger companies, the trend for job mobility also indicates that Taiwanese, especially young Taiwanese are motivated to learn and improve their lot in life. As in the West, bonuses and other financial rewards are good motivators. Good recognition for a job well done is also much appreciated in this society where the approval of the group is important.

Effective Presentations
Have all presentation materials translated into Mandarin and hire an interpreter. Be sure that you are well prepared with detailed facts and technical information; although the Taiwanese can be highly subjective in making decisions, they are becoming more and more dependent on empirical evidence. Know your products and your markets and how you can benefit your audience; the Taiwanese are interested mainly in deals that can benefit them directly.
Modesty and humility are appreciated in this culture. While you can outline the benefits of your products or services and the positive history and achievements of your organisation, do not be boastful. Emphasise your reliability and the fact that you can be trusted - and make sure that this is true! While friendliness can be shown, err on the side of a conservative, very respectful and businesslike approach. Be prepared for detailed questions at the end - or during the presentation. The Taiwanese may smoke during the presentation.
Your audience will not expect you to be very physically demonstrative in your presentation. Hands are not used much here. Be restrained in your movements. Show extra respect for those who are older; any points you are emphasising should be made while making eye contact to the senior members of the audience.
People may be reluctant to ask questions if they have not understood a point, as it will cause them to lose face. So allow time afterwards for mingling with the audience, so any extra questions can be asked privately, not in front of the crowd.

Managing Relationships
Social relationships in Taiwan are highly influenced by religious and philosophical persuasions, including Taoism, Confucianism and Buddhism. These promote harmony and working for the common good. Confucius also emphasised a respect and deference to authority and the pre-eminence of family - a notion which extends to the workplace.
These ideals are also encapsulated in the principles of guanxi - loyalty to family and friends and the notion of reciprocating favours (note that favours should never be confused with bribes but are simply favours). Managing relationships in the workplace and with customers and suppliers means understanding the rules of guanxi and knowing when to call in favours (rinqing), a tally of which most Taiwanese seem to carry around in their heads. Diplomacy is required at all times, as are strong leadership skills. When managing a team, an understanding of just how important the workplace is to a Taiwanese person -essentially an extension of the family home - is essential.
Education, particularly overseas, and hard work are seen as positives - the Taiwanese have a particularly strong work ethic. Strong leadership is needed in all business situations. Taiwanese workers are likely to form a bond with a particular boss and may move companies when that individual does, rather then stay loyal to the business.