American Vs. Chinese Business Culture

If you do business exclusively in the United States, it can be easy to think of American business practices as the way everyone does business. But different cultures teach different values, and what might be polite in the U.S. could be highly insulting in China. By understanding the differences between the two cultures and adapting your style accordingly, you can gain the trust of people in foreign markets, avoid offending potential clients and grow your business.
Importance of Relationships
Chinese businesspeople want to develop relationships with the people they buy and sell to. While Americans aren’t opposed to strong relationships, the value of the transaction comes first. However, for Chinese, relationships are generally more important. For this reason, Chinese businesspeople often want to get to know the person they’re doing business with and tend to prefer face-to-face interactions. While this can slow down the pace of business, trust is at a premium in the Chinese business culture. Don’t be surprised if a business partner asks you about your personal life or even your finances. This is a sign of interest, not indication of rudeness or disrespect.
Styles of Communication
Businesspeople in the United States often pride themselves on being tough or dominant, but slower, less aggressive style is valued in China. Chinese businesspeople often prefer to have time to mull over a contract, to talk about its risks and benefits and to consult with other interested parties rather than deal with tough negotiations. An aggressive American style is unlikely to be favorably perceived in China and could be seen as highly unprofessional.
Related Reading: Culture in Business Communication
Contracts
Contracts are at a premium in the United States, but because Chinese business culture tends to value careful contemplation and relationships, contracts are less important there. Businesspeople might not ever sign contracts and simply operate on a handshake basis. But even if you do get a contract, don’t expect this to mean the deal begins immediately. The success of a deal will be heavily dependent on ongoing social relationships.
Entertaining and Gifts
In the United States, you might take a potential client out to dinner to discuss business, but in China, entertaining is a goal unto itself. Successful businesspeople regularly entertain others and don’t force them to discuss business deals during dinners and parties. Additionally, gifts are highly valued in Chinese culture, so consider offering small tokens to your business partners. These gifts are a sign of respect and care, both of which are highly important aspects of the business culture in China.