With such a large territory and immense population — not to mention a growing economy — it’s no surprise that Western companies see an immense market opportunity in China. As demonstrated by companies who have entered and failed, however, the Chinese market is not an easy one to penetrate. 

These companies have discovered that it’s not as simple as deciding to open a business, setting it up in a year and starting to sell. The way the Chinese do business can be a complex undertaking for Western counterparts who have no idea what they’re getting into. For example, if you put a deadline on your project, you are likely to face a tremendous amount of pressure and stress if the project isn’t completed on time. To help you manage the complexities of business in the Chinese market, there are now leadership training programs available that can prepare you for this challenge.

In China, it’s more important to understand how to navigate linguistic and cultural differences than to have a specific business strategy. Before you even think about doing business in China, here are a few things to keep in mind:

1. Language

Let’s start with the most obvious one: Language. Tonal languages like Chinese are difficult to learn. A different set of rules for syntax and grammar can make it challenging, but the knowledge comes more easily with a lot of practice! The Chinese know how difficult it is to learn their language, so your Chinese counterpart will appreciate any effort you make to study it. Even learning two or three words will be highly appreciated, but, of course, if you are offered the chance to learn more, go for it! It can only give you an edge!

2. Culture

Learning about local customs in advance can help prevent culture shock. Understanding the history, environment, culture and traditions that affect your Asian partners can ensure smoother professional dealings and prevent any frustrations that could occur because of the differences in business operations.  

a. Trust and Guanxi (Relationships)

A prerequisite to any business dealing in China is trust. In Asia, developing trust in business can take a long time to foster. Unlike in the U.S., where professional relationships are limited to business meetings, in China, it may take a lot of meals and drinks before trust can be established. Chinese people do not dive into business on the first meeting, and they will find it insulting if you broach the subject before they feel it’s proper. The Chinese prefer to get to know you on a personal level — away from the office or boardroom — and decide if you are trustworthy. 

The Chinese also put a lot of emphasis on relationships. The family you belong to, the people you know and the friends you have can smooth business relationships. Anyone who belongs to their circle is immediately trusted and protected. Those who do not are treated as outsiders who will need to prove themselves before being included. 

Because the Chinese government can be slow and ineffective in enforcing contract terms and conditions, there is less emphasis on signed contracts and more on the personal relationships and strong ties that have been created before the start of any business deals.

b. Miànzi (Face)

As a social phenomenon, the concept of miànzi is hard to define and can require a whole book to describe properly. The closest words in English are “pride,” “dignity” and “honor” although none of these fully capture the idea. Unlike the Western concept of getting one’s ego bruised, the Chinese concept of “face” has less to do with the individual and more to do with how one is perceived by others. Unlike the ego, miànzi can be lost or taken away, but can also be given and earned.

In China, “face” is never to be taken lightly. At all. Always keep this in mind as the Chinese will go to any lengths to save face — even lying (according to the Western definition) – or, more aptly, stretching the truth (as defined by the Chinese). This can confuse foreigners who prize saying things in a frank and blunt manner. The Chinese culture forces you to read between the lines and understand when the truth is being molded into something else. In terms of deadlines and projects, if you don’t remember this, the result may be misunderstandings and problems! 

3. Nuances and Context

Because miànzi — or “face” — is so deeply ingrained in Chinese culture, Chinese people find frankness and straightforwardness disconcerting, abrupt and downright rude. Being aware of your own and your counterpart’s body language can also be a great advantage when doing business. For example, try to look cool, calm and collected at all times. Keep your posture straight to demonstrate attentiveness, respect and self-control. Shouting, arguing and asking questions — all of which can be seen as passion in Western culture — will be considered disrespectful and will cause you, your boss and your team to lose “face.”

4. Long-term versus short-term focus

Because the Chinese consider relationships so important in business, they are not accustomed to “business only” relationships. They believe that anything worth doing or having is worth spending time on. As a result, the Chinese will not hesitate to spend time to cultivate a relationship, placing importance on additional future dealings and not just the current deal. 

5. Sù zhì (Character)

In China, many aspects of sù zhì are prized – education and knowledge, tact, modesty, filial piety and proper etiquette. Your Chinese counterpart will assess your character based on these aspects. How the Chinese view these elements differ from how Westerners were raised to view them. That can be confusing and problematic when trying to establish a business relationship. 

More often than not, humility, discipline and patience can help you make adjustments and understand Chinese culture. For example, changing the way a question is phrased, giving praise, etc. can get you what you need more quickly. Confrontation is counterproductive and will only result in delays and unresponsiveness. It may require a lot of patience in the beginning, but the rewards will surely be great. Brands like Louis Vuitton, Starbucks, and Ikea are all examples of foreign companies that paid their dues and are now reaping the returns of their patience and perseverance. 

For some foreigners, being assigned in China or setting up a business there can seem like being in an alien world. But it doesn’t have to be. Some of today’s best leadership training workshops can help you make your way in this new world. It may require a significant personal and professional sacrifice in the beginning, but the return on investment is worth it.  Keep an open mind and heart … be respectful of the differences in culture, traditions and beliefs … and don’t be afraid to fully immerse yourself in the experience. Do your best to look at the bright side, and try to find a balance between who you are and the world you now find yourself in.