Location: Eastern Asia bordering Afghanistan 76 km, Bhutan 470 km, Burma 2,185 km, India 3,380 km, Kazakhstan 1,533 km, North Korea 1,416 km, Kyrgyzstan 858 km, Laos 423 km, Mongolia 4,677 km, Nepal 1,236 km, Pakistan 523 km, Russia (northeast) 3,605 km, Russia (northwest) 40 km, Tajikistan 414 km, Vietnam 1,281 km

Capital: Beijing

Population: 1,298,847,624 (July 2004 est.)

Language: Chinese

Lifestyle & Aspirations
In Maoist China, leisure interests were practically unheard of, although there is a booming leisure industry nowadays. The concept of hobbies is a relatively recent one. The following are all popular:
? Traditional games like cards and maj jong, which are passed down through generations.
? Domestic travel: The Chinese are great travellers and attractions like the Great Wall, the Yangtze River gorges, the Summer Palace and the Terracotta Army attract vast numbers of domestic visitors.
? Walking and hiking: The great outdoors is slowly becoming more popular, particularly among young people.
? Skiing: China has ski resorts in the north east, although these are fairly undeveloped. Ice skating and ice hockey are, however, more common in urban areas.
? Amusement parks: Growing in popularity in urban centres for those with money.
? Eating out: Regional cuisine is the most popular, although McDonalds and KFC, both completely alien to the Chinese palate, have reached the big cities and carry an element of prestige.
? Cinema, particularly kung fu and romantic movies. Films are censored.
? Sports: Gymnastics, table tennis, volleyball and basketball are a few of the more popular participation sports. Many people practice Tai Ch?i, or shadow boxing, in public parks.
? Watching TV: market penetration of TV sets is high and there are 3,240 channels, of which 209 are operated by China Central Television, 31 are provincial TV stations and nearly 3,000 are local city stations.
? Dancing: Traditional ballroom and discos.
? Karaoke: Grew in popularity as the craze swept in from Japan, although patriotic songs introduced by the Party put something of a damper on the karaoke spirit.
? Chinese circus and opera, which are of a high standard.
? Visiting the zoo: despite the Chinese fondness for exotic meats, Chinese zoos operate valuable conservation programmes.

The Essentials (10 Key Tips)
1. Demonstrate flexibility in your thinking. Western thought is dominated by linear logic; Chinese thinking is influenced by early philosophers, who saw a paradoxical balance of opposites in all things. Where Westerners tend to look for clear alternatives (option instead of option B), the Chinese may examine ways to combine both options.
2. Spend time developing guanxi - personal contacts/relationships involving mutual cooperation and support. Guanxi can make or break a venture in China.
3. Remember that ?saving face? - mianzi - is critical to the Chinese. Mianzi is the social perception of a person?s prestige. Causing someone to lose face will result in a loss of trust in the relationship.
4. Expect negotiations to continue even after an agreement has been signed. Be as adaptable as you can be.
5. Being punctual for appointments and being smartly dressed is a sign of respect.
6. Use a soft sell approach, but expect very hard bargaining from the Chinese.
7. Expect negotiations to be carried out in large groups, never one-on-one. Representatives of equal rank in each group will do the talking.
8. Don?t be in too much of a hurry. Be prepared to stay as long as is necessary.
9. Respect the hierarchy at all times. Decisions are made from the top, and you may find information-sharing is limited within organisations.
10. Expect warm hospitality and business entertaining from your Chinese hosts; they are a vital part of developing guanxi; visitors should be prepared to attend (and host) banquets.

Working with the Chinese
Working successfully with the Chinese means understanding the concept of guanxi, the complex networking system that governs all business deals, and the idea of 'face', which is central to the Chinese mindset. China is one country where there is no point in trying to impose Western values and methods; to get along here, the visitor must embrace Chinese culture and learn to work the system. Everything from meetings to negotiation to business entertaining has protocols which must be observed. Managing a Chinese team may bring surprises to the Western executive, too, as the team reacts differently to situations than a team in, say, the USA would.
Essentially, though, working in China can be rewarding once the respect of the Chinese has been earned.

Making a Good Impression
The single most important factor in making a good impression with the Chinese is to build relationships and cultivate them carefully, otherwise known as Guanxi. Building the friendship has to come before business is done; trust has to be in place before a deal can be made.
Achieve this by entertaining and accepting hospitality; joining in with events like banquets and drinking sessions; and certainly by understanding what makes the Chinese mind tick - the concept of saving face, of honour, loyalty, respect for seniors and the trading of favours to get a job done.
Being smartly dressed, serious, punctual and deferential to elders will also win the respect of the Chinese. Furthermore, be careful in conversation not to make a Chinese person lose face by discussing topics such as Taiwan, Tibet, human rights issues or the growing capitalist culture in Chinese cities.

Business Etiquette
Business Cards
Business cards are used throughout China. As a sign of respect, passing the card with two hands showing your details to your counterpart is considered good manners. Name and job title are essential, but a list of qualifications, such as ?MBA?, can be perceived as ?showing off?. Bring business cards with a translation printed (in Mandarin) on the reverse side. Gold ink is the most prestigious colour to use.
Foreigners doing business in China are not expected to engage in the more ritualistic exchange of cards so common in Japan but it is important to have cards ready and, in general terms, respect their importance and significance to a hierarchical society where terms of address and position are highly valued. Do not, for example, stuff a card in your wallet or back pocket once it has been presented. Put it on the table for the duration of the meeting instead.

Body Language
Body language in China is subtle. The Chinese prefer stillness to activity and do not pull faces or wave their arms around, so will be distracted if you do.
Holding the gaze of another person for too long is rude and disrespectful. Eye contact is appreciated at first meetings, but generally staring can be very disconcerting for many Chinese, especially at the opposite sex. Posture is important; don?t slouch. Do not point with one finger.
The Chinese do not like to be touched by people they do not know. This is especially important to remember when dealing with older people or people in important positions. Pushing and shoving in stores or when boarding buses and trains, however, is common and not considered rude.
If somebody is surprised or dismayed by something, they often show this by sucking air quickly and audibly through their lips and teeth.

Communication Style
Communication style in China is subtle and implicit. It can take years to master the interpretation of what a Chinese person really means.
The most important part of the Chinese psyche is ?face?, or mianxi. Having face means having a high status in the eyes of one's peers, and is a mark of personal dignity. Face must be gained and maintained in all aspects of social and business life. It can be given, lost, taken away or earned. Causing someone to lose face by insulting them or belittling them in front of others is a very serious social gaffe, even if it was meant in a teasing way.
A Chinese person will go to great lengths to save face, including withholding information, avoiding commitments and responsibility, or just doing nothing.
Since the Chinese are afraid of losing face, they will sometimes not tell you when they don?t understand. They will also tend to hedge their answers if they know the listener won?t like the answer. Frankness is not appreciated by the Chinese. Direct questioning is seen as rude.
Negative answers are also avoided as they cause loss of face, disharmony and are rude. The Chinese believe politeness is more important than frankness so they will not say ?no? directly. They may say something like ?I?ll see what I can do? or ?I?ll do my best?, which usually means ?no? but leaves things open so you can reopen the issue at a later time. If they say something ?is not convenient?, it means they need to obtain permission and this takes time. They also dislike confronting problems directly and tend to go around the issue which can be frustrating for more direct, explicit communicators. The overall communication style of the Chinese can be described as ?high-context? - that is, the information, setting and relationships which support the messages are just as important as the actual content. You can best size up a situation by paying close attention to facial expressions, gestures and overall body language.
Many Westerners find themselves talking too much in China; they can?t seem to tolerate silence as well as their Chinese counterparts. Do not be afraid of long silences - it is a sign to the Chinese that you are thinking.

Gift Giving
A lavish gift can be construed as an intended bribe, unless it is given in the context of friendship. Never give a gift of great value until a relationship is clearly established and both parties are clear that the gift is in the spirit of friendship. If you are bringing small gifts in a business context, bring one for each member of the group, rather than having to leave somebody out and cause them to lose face. Expect the gifts to be politely refused two or three times before being accepted. They will rarely be opened in front of you. Brandy, whisky, pens, smart lighters, books and paintings are all acceptable. If you are invited to a home, something small like cakes or chocolates will be appreciated. Remember to respect you own company policy on gift-giving, and the laws of China and of your own country.
Presentation of your gift is loaded with meaning. Red is lucky; pink and yellow represent happiness and prosperity; white, grey and black are funeral colours. Do not give gifts in sets of four (a number associated with death), and don?t bring clocks, as the Mandarin word for ?clock? sounds like the word for ?death?.

Business Meeting Culture
Meetings in China are highly controlled and are seen as a means to disseminate information rather than as a brainstorming session. During these meetings, only the leader speaks. All differences of opinion would have been hashed out before the meeting. The Chinese would also expect that the opposing team will have only one spokesperson and that any others in the delegation will not contradict the spokesperson.
This rigid format is changing slowly, with the presence of more multinationals in China imposing a more Western meeting culture on Chinese managers. However, if you take a team to meet a Chinese delegation, expect a degree of formality in every aspect of meetings from first greetings and introductions to order of seating, content of discussions, and how they are conducted.

Planning a meeting
One-to-one meetings are unusual; it?s more common to come as a team, which should include some technical experts.
Give your counterparts advance notice as to what you would like to accomplish in China, as a courtesy. Surprising them in a meeting will only cause loss of face, which will get things off on the wrong foot. The Chinese will also prepare a delegation for the meeting equal in number to yours, with someone of suitable rank as their spokesperson.
Initial meetings may be used more for getting to know one another than actually doing business.
Arrange for a tried and trusted interpreter to be present and brief them thoroughly on what you are trying to achieve.

During a meeting
Expect the Chinese to enter the room in hierarchical order. The most senior person will speak, and will not be contradicted by other members of his or her team. The meeting will begin with small talk; on a one-to-one basis, you may find some of the questions quite personal. It is acceptable to give a vague or non-specific answer, although maintaining politeness is essential. Throughout the meeting, humility is essential; bragging is seen as very bad form in China.
The Western concept of brainstorming in business meetings is unknown in China, where everything that is said must be carefully considered in terms of its effect on others and on the consensus-gathering process.
The Chinese use of silence is often used as a way to avoid saying no. Silence also implies ?There are still problems, and we would like to consider the main issues?. Another way the Chinese avoid a negative response is to say ?Yanjiu Yanjiu?, meaning ?We will do some research and discuss it later.? This usually means that they are not interested.
If you are distributing printed material during the meeting, have it printed in Chinese and make sure there is a copy for everybody.

Following a meeting
Follow up in writing what was said, thanking your counterparts for their time and opinions. Do not, however, expect any quick decisions. Concluding a deal usually takes many rounds of negotiations.

Motivating Others
Confucian tradition does not include the desire for great wealth and fame, but there are many different factors motivating the millions of Chinese workers. Confucius aside, wealth, status, achievement and respect of others are all signs of success in China. 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 has been suggested that because of the importance to the Chinese 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. The Chinese are also influenced by guanxi; others in their network of associates will offer opinions and the desire to please friends or stay out of trouble may override practical considerations in the workplace.
In middle management, too, the increasing trend of job mobility would suggest that Chinese managers are more interested in improving their own lot in life. In the faster growing economic regions, competition to acquire and retain talent is more intense than ever. In such climates, financial rewards, bonuses and compensation schemes are seen as the natural motivators.
In the future, flatter structures and greater recognition of the individual may tap into the complex Chinese psyche with more success than years of communist rule have achieved. Chinese workplaces need to allow workers to pursue individual as well as collective goals in meaningful and rewarding ways.

Effective Presentations
Presentation Essentials
Presentations should be detailed, technical, and factual. When making a presentation to the Chinese, it is important to be very knowledgeable about your own products, your competitors, about the market, and about your organisation. Speak often of trust and cooperation between you and your counterpart. Keep your presentations brief if a large group is involved. Expect to make presentations to many different groups at different levels. Have at least 20 copies of your proposal available for distribution when you arrive and use plain black and white for your collateral materials, since colours have great significance for the Chinese.
Never exaggerate your ability to deliver, because the Chinese believe humility is a virtue ? and also because they will investigate your claims. Once you are beyond the presenting stage and into hard negotiating, their questions will be endless, repetitive, and detailed; they are checking to see if your answers are consistent.

Audience Expectations
In keeping with the tradition of respecting elders and more senior people, Chinese audiences do not generally question or challenge the presenters. If you require more interaction, it is advisable to tell your Chinese audience up front what your expectations are and assure them that their participation will be of mutual benefit.
The Chinese do not use their hands when speaking, and will only become frustrated with a speaker who does.

Managing Relationships
Social interaction in Chinese cultures involves dynamic relationships among the concepts of Face (mianzi), favours (rinqing), and relationships (guanxi). The unwritten rules of guanxi are prescribed by lun, a set of Chinese feudal ethics that define the hierarchical relationships between the noble and the humble, the close and the distant, as well as the individual and the group (family or clan). Guanxi are increasingly complex relationships that are with the Chinese from birth. One is born into a social network of family members, and as one grows up, group memberships involving education, occupation, and residence provide additional opportunities for expanding the network.
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 Chinese seem to carry around in their heads. Diplomacy is required at all times, as are strong leadership skills. It is also essential that foreigners respect their country's laws, those of China and their own company policy.
When managing a team, an understanding of just how important the workplace is to a Chinese person - essentially an extension of the family home - is essential.