Navigating Relationships on Your Next Business Trip to China

We are all aware of the growing importance and influence of China in business, today. The coastal cities have seen incredibly rapid urbanization in the past decade, translating into a rise in discretionary income and thus, an explosion of growth in their consumer markets.

However, with the maturation of urban cities’ markets, companies have been moving towards the nation’s value market, commonly referred to as rural China. Rural is used as a loose term and addresses cities with GDPs below 67 billion USD. Together, these cities earn approximately 10 trillion USD in income, but it doesn’t stop there; this segment is rapidly climbing the income ladder, meaning more purchasing power and opportunity for businesses. China was expected, by the Global Travel Association, “the world’s most dominant business travel market last year“, surpassing the USA.

This rapid growth means that the future of business cannot ignore the growing relevance of China and its billion consumers. Reaching them, on the other hand, is a mountainous challenge corporations must overcome.

The landscape of relationships and networking in China is drastically different from what we are familiar within the West, although, such networks are just as necessary for good business and to reach those billion consumers. The good news is that the development of influence in such personal networks, commonly referred to as guanxi (关系), is an art that can be learned.

Guanxi: The Art of Relationship Building

Guanxi directly translates into “relationships,” and such relationships are divided into four distinct categories:

[icon_list_item icon=’fa-check’ icon_type=’transparent’ icon_color=’#2196f3′ icon_top_gradient_background_color=” icon_border_color=’undefined’ title=’Strangers’ title_color=” title_size=”] [icon_list_item icon=’fa-check’ icon_type=’transparent’ icon_color=’#2196f3′ icon_top_gradient_background_color=” icon_border_color=’undefined’ title=’Acquaintances’ title_color=” title_size=”] [icon_list_item icon=’fa-check’ icon_type=’transparent’ icon_color=’#2196f3′ icon_top_gradient_background_color=” icon_border_color=’undefined’ title=’Friends’ title_color=” title_size=”] [icon_list_item icon=’fa-check’ icon_type=’transparent’ icon_color=’#2196f3′ icon_top_gradient_background_color=” icon_border_color=’undefined’ title=’Family’ title_color=” title_size=”]

Business-men-walk

Although these categories seem relatively similar to those that are used in the USA, there are some notable differences. In China, individuals are indifferent to the stranger. You will not strike up small talk with the waiter at the restaurant or speak to the neighbour as you wait for the elevator; people will not trust strangers and they will surely not do business with them. The next level is the acquaintance, who is not indifferent, but helpful. If the acquaintance is promoted to the friend, the door to business opens.

Friends are loyal to one another, but how can one transition from friend to family, unless you share a parent? The short answer is, you can’t. However, you can get close by deepening the friendship and achieving such devotion which is exclusive to individuals who are as close as family. This presents itself as a major challenge to business travelers who must make the transition from stranger to friend in a limited amount of time.

From Stranger to Acquaintance through Commonality

So, how do you break down the barrier to promote yourself from stranger to acquaintance? Make positive first impressions, seek commonality, and use your imagination. Positive impressions can be as simple as correctly pronouncing names; an incorrect pronunciation is not going to blacklist your business because it is not atypical for a foreigner to pronounce a Chinese name incorrectly. Yet, for that reason, it is evermore pleasantly surprising when that first pronunciation is correct.

Commonality can be found in the most obscure of places, but before you search the corners of the earth, let’s begin with the standard:

The first place you can look is ascriptive attributes such as birthplace or surnames—especially useful for those travelers who might be half Chinese or ethnically Chinese yet unfamiliar with Chinese customs when traveling for business. In China, it is almost expected for individuals to ask one another “where are you from?”—referring to their hometown in China. If you were both born in the same city, then there is your commonality. Even if you were both born in coastal cities, there is commonality. If the same surnames are present, which happens more often in China than the West, then you are siblings!
The second place you can look is at past experiences such as universities, businesses, etc. It is rather common for Chinese students to study and work abroad. In 2015, there was a record high of half a million Chinese students abroad. And in September of 2016, overseas Chinese investment was also at a record high with investments totalling $145 billion abroad, which was an 18% increase from 2014; if you’re traveling on business, they’re likely curious in hearing more about it. And look for indirect connections in those fields as well – you might have a friend or extended family member in the same university or industry.

These standard commonalities are typical among Chinese individuals; however, what if you’re not natively or ethnically Chinese? That is where you must tap into your creativity.

You might have a surname that is not ethnically Chinese; however, if it is an English word, there might be a Chinese translation. Try this riddle: two businesspeople walk into a bar and one’s last name is Stone while the other’s is Shi. How are they brothers? Stone translates into shi (石) in mandarin – so when the stone fell from the sky, it was split into two. One piece landed in North America, while the other, in China!

Da Shan (大山) is a Canadian who moved to China and achieved success through performing standup comedy, in Mandarin. If learning Mandarin is the mountain, then performing comedy in Mandarin is the volcano. His English name is Mark Roswell, and he is loved throughout the nation. Maybe you’re from his hometown, Ottawa, Ontario; maybe you know someone who was, or maybe you just know something about Ottawa; so, business travellers, commonality is everywhere if you’re looking!

From Acquaintance to Friend

Once you are an acquaintance, you must cultivate the relationship to transition to the coveted friendship. The foundation of this transition lies in the historic presence of Confucianism in China and its three key teachings:

  1. Human beings exist with unequal status. For example, the ruler is superior to his subjects, the father is superior to his son, and although unaligned with today’s view, the man is superior to woman.
  2. Family and social harmony is of the utmost importance. Harmony is interpreted as peacefulness and concordance. One should behave according to the Confucius principle of “being close to and learning from people of virtue and compassion, caring for people while associating with them” because “harmony is beneficial to all things”.
  3. Self-discipline through delayed gratification in pursuit of higher achievement is considered virtuous.

Unequal Status

Because these Chinese values include the notion that humans are of unequal status, is it imperative that business travelers are respectful of the hierarchical order and demonstrate such respect throughout all interpersonal exchanges such as receiving business cards, gifts, and even names. Cards should be accepted with both hands and a slight bow and should be admired upon receipt, while gifts should not be opened in public.

Chinese names, on the other hand, are less common. You’re not expected to have one as a foreigner unless you are ethnically Chinese, but taking the time to find one for yourself is a demonstration of respect. When you are choosing your name, do not simply input your English name into Google Translate. Rather, take the time to talk to a native speaker or use any of the popular Chinese naming tools available online, such as this one, which will help you identify a name with meaning.

More examples can be seen at the dinner table, or banquets, which are more common than they sound, with toasts. When you are toasting an individual who is of higher rank or age, lower the rim of your glass slightly below theirs, as so:

Dinner Drinking Etiquette in China

Often, when you cheers, you will say gan bei! And you’ll toast to your health, friendship, closing a deal, a safe flight, etc. These are short toasts that are never longer than the hosts’ toast to you. That being said, China’s large and there are a variety of customs that differ from region to region. Demonstrate your interest and impress your host by simply asking! It should also be noted that conversations during these meals are social. This is not the time to talk about negotiations and contracts.

Family and Social Harmony

The second teaching of harmony emphasizes the need for one to be considerate of others in meetings. Genuine consideration must be taken into account throughout interactions and can be demonstrated if one is presented with the opportunity of dining with potential business partners while traveling in China. The focal point should always be on those around you while dining. Here are some examples:Serve tea to those around you before you serve yourself.

[icon_list_item icon=’fa-check’ icon_type=’transparent’ icon_color=’#2196f3′ icon_top_gradient_background_color=” icon_border_color=’undefined’ title=’Serve tea to those around you before you serve yourself.’ title_color=” title_size=”] [icon_list_item icon=’fa-check’ icon_type=’transparent’ icon_color=’#2196f3′ icon_top_gradient_background_color=” icon_border_color=’undefined’ title=’Compliment the quality of the food.’ title_color=” title_size=”] [icon_list_item icon=’fa-check’ icon_type=’transparent’ icon_color=’#2196f3′ icon_top_gradient_background_color=” icon_border_color=’undefined’ title=’Leave a little bit of food on your plate at the end of a meal to demonstrate fullness.’ title_color=” title_size=”] [icon_list_item icon=’fa-check’ icon_type=’transparent’ icon_color=’#2196f3′ icon_top_gradient_background_color=” icon_border_color=’undefined’ title=’Never drink alcohol alone—meaning, toasts should be proposed and accepted when one wants to drink.’ title_color=” title_size=”]

That means, you must accept toasts if they are offered to you; however, the baijiu alcohol is of much stronger concentration in China and will go right to your head on an empty stomach; don’t forget to eat before the toasts begin! If you cannot drink due to medical reasons, make sure to notify the host prior to the start of the event. They’ll understand and take actions to accommodate you throughout the meal to avoid your embarrassment.

Such genuineness can also be demonstrated through gift-giving. When you are traveling, bring something for the company, typically one gift that is given to the leader of the Chinese delegation. Ensure that it is unique to your country and demonstrates a local identity.

Delayed Gratification

The final teaching implies modesty. One who is willing to delay gratification through hard work realizes that the impulses will simply not suffice, and this belief can be demonstrated through simple interactions with other individuals. For example, holding the door and saying, “You first!”, regardless of status. Or, when individuals ask if you’re good at something, don’t say, “Yes, my awesome work ethic just landed me five new clients, and I have 14 articles written in XYZ magazine.” You must respond humbly: “I wouldn’t say I’m good; I’ve just had a lot of luck”. Nobody appreciates the boastful.

And don’t be afraid to make mistakes! Although all these unspoken rules exist, they are not binding. Nobody likes perfect individuals. Simply identify your wrongdoing and take the appropriate actions to make changes. It will demonstrate modesty and show your humanity.

From these foundational teachings, one can begin to understand how to develop friendships, but to border family in the development of guanxi, the last step is staying connected through the remembering and attendance of events such as birthdays or weddings, dropping by when one is in town, or even visiting the ill in the hospital. This will demonstrate the importance of the friendship and intentions to make it last.

But friendships are hard, especially when you’ve wandered into separate time zones. How do you maintain these relationships? In a recent interview with 30SecondstoFly, Associate Professor of International Business, Nailin Bu, at the Smith School of Business at Queen’s University said, “it’s very similar in the general format of interaction, but maybe different in some of the substance of communication. For example, in Asia, if I heard that a friend’s mother is in surgery, I don’t just send a generic note of sympathy. I would ask a bit more about the detail of the illness and treatment – questions the westerner might feel are too personal. Of course in Asia, it also depends on the depth of the relationship.”

By committing to these teachings and adjusting to the landscape of China in your business travel, you are sure to build lasting relationships that are not only beneficial to your business but friendships that you can derive great value from. Best of luck!