Eng Paper - Shaq’s Accounting Firm - China Expanding

...

CHINA’S BUSINESS ETIQUETTE

Some of the norms of business etiquette include giving gifts and having a dinner with their guest during their time of stay. The gifts and dinners are usually during the beginning of meeting one another and towards the ending of the negotiating part of the business. It doesn’t matter which comes first, whether it’s a gift, dinner, or something else. According to E Diplomat, “Always give gifts to each member of the Chinese delegation that meets you in the order in which they were introduced. Suggested gifts: cigarettes, French brandy, whiskey, pens, lighters, desk attire, cognac, books, framed paintings. Give more valuable gifts — like cellular phones or small CD players — to senior level people.” These are a few of the common gifts that are given when having business dealings with others. Gifts that are given out are not limited to this list. It could be unacceptable to give out very expensive gifts because it is usually expected for the other party to repay the favor. According to De’Endra Williams, “the following gifts and/or colors are associated with death and should not be given: clocks, straw sandals, a stork or crane, handkerchiefs or anything white, blue or black.” These gifts are considered unacceptable because they are associated with death in China’s culture. If these items are provided as a gift, it would be very hard for the people representing China to look past this. As figure 1 show below on page , here are some additional bad and good gifts for business in China. According to Trade Commissioner, “The banquet is generally a social event in a formal context. Discussion will likely center around pleasantries, background information on the region or the company, but it is not a time for negotiating or challenges. The focus may not be the food per se, but there will be pride in the offerings provided.” When there is a banquet or dinner provided, business is rarely discussed unless initiated by the Chinese. If business is discussed, it is something that is indirectly related to the negotiations. According to E Diplomat, “The Chinese sponsoring organization generally hosts a welcoming banquet. Foreign guests should reciprocate toward the end of their visits. Invite everyone with whom you have dealt.” This is usually the norm, to repay the favor. But it doesn’t have to be another banquet, it could be a parting gift if that’s what you are most comfortable with. Giving gifts and having dinner with their guests is one of the most important aspects of having business dealings with foreigners. This is because this is the Chinese way of showing how committed they are to become business partners.

CONCLUSION

It wouldn’t be impossible or easy to expand a business into China but there definitely is a lot to learn about China’s culture and business conduct. One thing that would be fairly simple is following the accounting standards in China. There are already a set of international accounting standards that are followed by many countries including China. The transition from the normal accounting standards toward international accounting standards wouldn’t be difficult with someone who specializes in the area. It is very vital to be aware of all of China’s customs because a simple mistake could end a business relationship. For example Gary Stroller said, “As I hooked up my laptop to the projector, a desktop photo of my three children went on the screen for 20 to 30 seconds while I was looking for something in my computer bag," Most people wouldn’t find anything wrong with this but for the Chinese this is very insulting because they have a one child policy. Recently, China have loosened on this issue somewhat. To refrain from making this mistake, you will need to do extensive research on China’s culture.

---------------------------------------------------------------

[pic 1][pic 2]

WORKS CITED

"Export, Innovate, Invest - The Canadian Trade Commissioner Service."Site of the Canadian Trade Commissioner Service to Help Companies Do Business Abroad: Market Studies, Contacts Abroad, Services of Our Offices Abroad. N.p., 9 July 2015. Web. 12 July 2015.

"Gifts in China: What to Give, What to Avoid (infographic)." Illuminant. N.p., 28 Sept. 2012. Web. 27 July 2015.

"Doing Business in China." Doing Business in China. Kwintessential Ltd, n.d. Web. 12 July 2015.

"China - Cultural Etiquette - E Diplomat." China - Cultural Etiquette - E Diplomat. EDiplomat, 12 July 2015. Web. 12 July 2015.

Stoller, Gary. "Expert Etiquette Tips for Doing Business in China." USA Today. Gannett, 30 Dec. 2013. Web. 12 July 2015.

Williams, De'Edra. "China Business Etiquette, Culture, & Manners." China. International Business Center, n.d. Web. 12 July 2015.