Doing Business In China Research Paper
Executive Summary
The Chinese have a vast web of traditions, customs and networks that shape their business culture. It is important to learn and understand these critical components for doing business in China. It can be a confusing and fascinating experience for a westerner unfamiliar with Chinese customs and history. To learn the Chinese culture and history is to learn ancient Asian history. It is important that you do so. Confucianism and history play a major part in Chinese society and business today. Guanxi is the most critical component of business success in China. Guanxi is what will establish your company as a major competitor or could keep it from becoming established at all. A good guanxi relationship, particularly with the government, …show more content…
can make all the difference to a foreign company doing business in China. Knowledge of proper protocol for gift giving, greetings and conversation will help you to establish such important connections. The topic of bribery and corruption and how guanxi and other alternatives can counter it, is an important issue to consider for any company. This paper will reflect on how to successfully establish yourself through knowledge of the culture/history and guanxi, as well as how to deal with corruption. It will also show you the best way to relate to one another by using the accepted means in Chinese culture.
Ethical/Cultural Issues Effecting Businesses in China
Ethical and cultural issues are important factors for westerners to consider when doing business in China.
Due to the differences in customs and culture, Asian business practices vary greatly from that of western culture. Confucianism has been a major influence in Chinese society as well as the business culture. Understanding these critical components of Chinese culture will help you determine the best way of relating to each other. In what circumstances is gift giving appropriate? How do you know a gift from a bribe? What is the proper way of accepting or declining a gift? Dealing with corruption, the consequences of being caught and political reform are also important issues to consider. The importance of relationships (guanxi) and proper protocol for various situations as well as the differences in communication styles are crucial factors for success in China. One must understand Chinese culture and its history to achieve business success with the …show more content…
Chinese.
Confucianism
In order for a westerner to understand the differences in culture, that person must have a working knowledge of Chinese history and Confucianism.
Both of these things have a strong influence on the way that business and everyday life in general is approached and conducted. "Although Confucianism is usually followed in a religious manner by the Chinese, argument continues over whether to refer to it as a religion because it makes little reference to theological or spiritual matters (God(s), the afterlife, etc.)". Confucianism was favored by Emperor Han Wu Di (141BC-87BC), the sixth emperor of the Han Dynasty. The Han Dynasty had its biggest expansion under his reign. He also made the principals of Confucianism the state philosophy and code of ethics for his empire. This must have had a profound effect on the spreading and acceptance of Confucianism. Confucius (551BC-479BC) had a philosophy of life that gave respect to everyone and stressed peace and harmony. When asked by Chi K 'ang-tzu, who became the head of the three families who ruled in Lu, about how to get the common people to be respectful and loyal, Confucius said "Approach them with dignity, and they will respect you. Show piety towards your parents and kindness toward your children, and they will be loyal to you. Promote those who are worthy, train those who are incompetent; that is the best form of encouragement." This very wise advice is a good example of the Confucius philosophy of life. Confucius also stresses
"Ren" (benevolence, love) and "Li" (rights), showing his respect for the system of social hierarchy. Confucianism is part of the Chinese people 's daily life as it is the foundation of Chinese family structure, and the guidance for personal attitudes and behaviors.
Chinese History
China is the oldest civilization in the world. It was ruled by dynasties for over 2000 years. The last emperor was overthrown in 1911, forever ending the rule of dynasties. Today, China is a communist government with a socialist ideology and a capitalist economy. In many aspects, the transition has not been difficult for the Chinese. The dynasties, like communism, were all unrepresentative of the people. The communist bureaucracy established in 1949 was similar to the dynastic model that had been used for thousands of years. "Philosophically and culturally the Chinese were already prepared for a socialist ideology based on communal effort and rigid hierarchy, so replacing older Confucian driven dynastic hierarchical structures with totalitarian Communist ones was not revolutionary (despite Mao 's rhetoric)." China is a group oriented culture. The individual is not stressed however; there is a powerful tradition of individual responsibility. An individual who doesn 't perform his/her responsibilities or neglects their duties will lose face and have to deal with consequences from the group.
Gift Giving
In business settings, gift giving should take the form of a gift hat correctly symbolizes the nature of the relationship. Gift giving is an important part of establishing and maintaining Guanxi. When going to China on business it is appropriate to bring gifts for all those you will see. There are several factors to consider when giving gifts. "The general rule is pastries for the office staff, high-quality corporate logo items (all the same) for business associates, and an especially thoughtful, somewhat personalized gift for the key man you will be working with" . The status of the receiver is important. The "key man" that you will be working with should receive a personalized gift. Often a bottle of fine whiskey or cognac is appreciated. If giving more then one gift, gifts should not be in an even number or nine. Eight is considered to be a very lucky number. Gifts are presented at the start of the first meeting as a sign of sincerity. A farewell gift is presented to you at your last meeting or when you present your gifts. Several items not to give as gifts include clocks which are a similar word for death, handkerchiefs which symbolize sadness and cutlery which symbolizes the severing of a relationship. Flowers are not usually given as well and cash should never be given. Gifts must be well wrapped and in a certain color depending on the occasion. Green, white and black are funeral colors. Blue is a color of mourning. Red and gold are royal colors while yellow and pink are happy colors and are the most appropriate for business relation gift giving.
The proper method of giving or accepting a gift is important. Gift giving is a natural part of a relationship with the Chinese and following the tradition for accepting or giving gifts is necessary. Certain guidelines should be followed for proper gift giving.
Gifts are always to be presented and received with both hands. Gifts are not to be opened in front of the giver. It is the proper etiquette for gifts to be exchanged for celebrations, as thanks for assistance and as a sweetener for future favors. You must have good reason and/or witness for giving a gift. If you are being given a gift by a Chinese counterpart and are asked what you 'd like, something reflecting the Chinese culture would be a good idea. Tea and ink paintings are gifts that reflect your interest in the Chinese culture. This shows your appreciation and can help to establish or maintain good guanxi. Business gifts must always be reciprocated. Not to do so is considered morally wrong and will cause you to lose face.
It is important to understand how to differentiate between a gift and a bribe. "Gift giving is one of the most pleasant and also one of the most difficult of Chinese customs to understand; however, the lines between gift giving and corruption are often blurred". Gifts are often given in the presence of others. If a gift is given to you in secrecy, without good reason or under any other suspicious circumstances it may be best to respectfully decline the gift. Having a Chinese partner present with you may help to keep things clarified.
Bribery and Corruption
China was ranked by transparency international as one of the most likely countries to offer or accept bribes. The President of Transparency International said "Companies in China are practicing bribery on an exceptional and intolerable scale" In 2004 China was ranked by Transparency International as being a 3.4 on a scale of one to ten, ten being the most honest and one the most corrupt. Statistics show that there have been over 200,000 reported cases of bribery from 1998-2003. China has recently made a visible effort to crack down on corruption. Many powerful people have been removed from power as a result of this latest effort. One corrupt official in southwest China was even sentenced to death in 2000 after being convicted of accepting bribes. China 's Supreme People 's Procuratorate (SPP) has been charged with overseeing the investigation and the charging of suspects particularly, those above the county level. "Many criminals are now offering officials not only money, expensive home appliances or jewelry, but also stock shares, autos, houses, overseas travels and even sexual service,". These discoveries illustrate a new trend in corruption and the way bribes can be and are given.
Steps should be taken to avoid and counter any corruption that you may face. First, since having a local partner is important for success, it would be better to have the partner deal with anyone who may be seeking a bribe. This person would be much more aware of the proper channels to use to deal with this situation. An overseas Chinese contact might even be able to assist you. It is important to have a good level of transparency with who you choose as your partner. Second, have multiple partners in different regions if possible. This will allow you to keep your interests spread out and leave you open to other alternatives. Be careful not to allow any individual to have too much power over company business. This could allow for someone to hurt the reputation of the entire company or worse. Third, good guanxi is very important for success, especially with the government. Your local partners may be able to use their guanxi with other companies or the government to assist you. Forth, offering other alternatives to whomever is seeking a bribe is a way of avoiding paying the bribe and allows the other party to save face and consider another option. Other alternatives could include technology transfer or some other renegotiation of terms.
Relationships
The establishment of relationships (guanxi) is critical for success in China. Guanxi is developed and maintained by two key elements. These are face and renqing. Face is best described as one 's public image while renqing is best described as a social or humanized obligation. "Reqing is thus a kind of favor with the inclusion of a sentimental element". Guanxi is a personal relationship that is of a reciprocal and long term nature. Western culture tends to stress individualism for personal success while Chinese culture is more group oriented and emphasizes the importance of guanxi. Western business people can establish guanxi with Chinese networks but, if you don 't have an intermediary to introduce you, it may take a good deal of time to build up trust. It is not likely that the Chinese will be quick to trust a stranger. If you are without an intermediary and must build trust on your own, it is well worth the time and money to do so. By having an intermediary, hopefully one that is Chinese, relationships and trust can be quicker established and you can save time having to prove yourself credible. You must, however, remain credible or you will cause your intermediary to lose face as well as yourself. Remember that guanxi is a relationship of reciprocity and long run nature; you will be expected to reciprocate. Guanxi is your most valuable intangible asset when doing business in China.
Greetings/Communication Styles
The western business traveler must be aware of the different greeting styles that exist in China. China is a non-touching culture. It is typical that you will be introduced and exchange business cards with your Chinese colleague, shake hands and then bow. Like gift giving, there is a fixed procedure for exchanging business cards. First, you should bring plenty because you will be giving them to everyone that you meet. Second, while giving or receiving a business card you are to do so with both hands. The card is to be held in the upper right and left corners when presenting or receiving it. You must take care to make sure that your business cards are in perfect condition. You should discard any bent, dirty or written on cards. Having your business card translated into Chinese on the other side will show your consideration. It is also a good idea to have the Chinese translation printed in gold demonstrating respect. When you present your business card do so with the Chinese side up. After this you will shake hands and bow. The handshake is done for the westerners benefit. This is not a practice that the Chinese do amongst themselves. "When the handshake does occur it is more often then not very soft, almost limp. This does not signify insincerity; rather, it is an indication of humility using a western convention". If a woman is going to shake hands she must offer her hand first to the Chinese colleague. The bow is done by placing the right fist in the palm of the left hand, holding hands at stomach level and deeply bowing. It is important to keep a smile on your face and make eye contact when first being introduced. Do not maintain eye contact beyond this. Your eyes should drop to the ground while bowing.
The differences in communication styles are important to understand. Discussing things that you may have in common with your Chinese host is a good way to start to build a personal relationship. Topics such as personal hobbies and interests are safe to talk about as is your interest in anything Chinese. Topics to avoid include politics, US-China relations, religion and inquiring about a Chinese colleague 's income or family. The use of silence is another cultural difference in communication styles. While silence may make some westerners uncomfortable, the Chinese see this as a social norm that can be a way of communication in itself. "When confronted with silence, for whatever reason, the best response is to remain silent yourself, although this may be difficult and appear unproductive for time-conscious westerners". Speaking too much is considered immature so don 't be the one to break the silence or gab too much. A popular Chinese saying is "he who speaks the least, speaks the most". While you might not be discussing business at the time, you are constantly being evaluated by your Chinese counterparts and strict adherence to the customs is important to making a good impression.
Conclusion
The Chinese culture has a great effect on the way business is done with them. It is important to learn and understand it for creating guanxi and ultimately success. The Confucian philosophy and China 's long history are major contributors to how Chinese society and Chinese business operates today. The Chinese are an honorable and humble people. There are many interesting aspects to their culture that will confuse yet amaze many westerners. Know the correct situations for giving gifts. Have a Chinese partner whenever possible. Use alternatives, local partners, guanxi and any other means necessary to counter bribery and corruption. Know the appropriate situations for giving gifts and proper protocol for accepting them. Knowledge of proper greeting styles and the protocol that accompanies them are important for a good first impression. You must, must, must establish guanxi. Whether it is through an intermediary (preferably) or your own invested time and money. This is probably the most critical element for success. By establishing guanxi you are making what should be expected as a long term relationship that is reciprocated, sometimes frequently. The benefits of this can make or break your company. The reason for suggesting guanxi as the number one priority is because this can make a lot of potential problems easier to confront and conquer. Remember, you must choose a common ground when beginning relation with your Chinese counterpart. Relate to your host and colleagues through the best neutral means possible, in order to first establish guanxi.
Bibliography:
1) http://en.wikipedia.org/wiki/Confucius
2) http://www.san.beck.org/CONFUCIUS1-Life.html
3) Global Etiquette Guide to Asia, Dean Foster, John Wiley & Sons, Inc. 2000
4) http://www.fsa.ulaval.ca/personnel/vernag/EH/F/ethique/lectures/Chine_corrupt.htm Journal of Business Ethics; Dordrecht; Jun 1999; P Steidlmeier
5) http://english.people.com.cn/english/200012/15/eng20001215_57936.html, Zhau Dengju, Deputy Procurator-General, SPP
6) Business in Asia Pacific, Sonia El Kahal, Oxford University Press, 2001
The Chinese have a vast web of traditions, customs and networks that shape their business culture. It is important to learn and understand these critical components for doing business in China. It can be a confusing and fascinating experience for a westerner unfamiliar with Chinese customs and history. To learn the Chinese culture and history is to learn ancient Asian history. It is important that you do so. Confucianism and history play a major part in Chinese society and business today. Guanxi is the most critical component of business success in China. Guanxi is what will establish your company as a major competitor or could keep it from becoming established at all. A good guanxi relationship, particularly with the government, …show more content…
can make all the difference to a foreign company doing business in China. Knowledge of proper protocol for gift giving, greetings and conversation will help you to establish such important connections. The topic of bribery and corruption and how guanxi and other alternatives can counter it, is an important issue to consider for any company. This paper will reflect on how to successfully establish yourself through knowledge of the culture/history and guanxi, as well as how to deal with corruption. It will also show you the best way to relate to one another by using the accepted means in Chinese culture.
Ethical/Cultural Issues Effecting Businesses in China
Ethical and cultural issues are important factors for westerners to consider when doing business in China.
Due to the differences in customs and culture, Asian business practices vary greatly from that of western culture. Confucianism has been a major influence in Chinese society as well as the business culture. Understanding these critical components of Chinese culture will help you determine the best way of relating to each other. In what circumstances is gift giving appropriate? How do you know a gift from a bribe? What is the proper way of accepting or declining a gift? Dealing with corruption, the consequences of being caught and political reform are also important issues to consider. The importance of relationships (guanxi) and proper protocol for various situations as well as the differences in communication styles are crucial factors for success in China. One must understand Chinese culture and its history to achieve business success with the …show more content…
Chinese.
Confucianism
In order for a westerner to understand the differences in culture, that person must have a working knowledge of Chinese history and Confucianism.
Both of these things have a strong influence on the way that business and everyday life in general is approached and conducted. "Although Confucianism is usually followed in a religious manner by the Chinese, argument continues over whether to refer to it as a religion because it makes little reference to theological or spiritual matters (God(s), the afterlife, etc.)". Confucianism was favored by Emperor Han Wu Di (141BC-87BC), the sixth emperor of the Han Dynasty. The Han Dynasty had its biggest expansion under his reign. He also made the principals of Confucianism the state philosophy and code of ethics for his empire. This must have had a profound effect on the spreading and acceptance of Confucianism. Confucius (551BC-479BC) had a philosophy of life that gave respect to everyone and stressed peace and harmony. When asked by Chi K 'ang-tzu, who became the head of the three families who ruled in Lu, about how to get the common people to be respectful and loyal, Confucius said "Approach them with dignity, and they will respect you. Show piety towards your parents and kindness toward your children, and they will be loyal to you. Promote those who are worthy, train those who are incompetent; that is the best form of encouragement." This very wise advice is a good example of the Confucius philosophy of life. Confucius also stresses
"Ren" (benevolence, love) and "Li" (rights), showing his respect for the system of social hierarchy. Confucianism is part of the Chinese people 's daily life as it is the foundation of Chinese family structure, and the guidance for personal attitudes and behaviors.
Chinese History
China is the oldest civilization in the world. It was ruled by dynasties for over 2000 years. The last emperor was overthrown in 1911, forever ending the rule of dynasties. Today, China is a communist government with a socialist ideology and a capitalist economy. In many aspects, the transition has not been difficult for the Chinese. The dynasties, like communism, were all unrepresentative of the people. The communist bureaucracy established in 1949 was similar to the dynastic model that had been used for thousands of years. "Philosophically and culturally the Chinese were already prepared for a socialist ideology based on communal effort and rigid hierarchy, so replacing older Confucian driven dynastic hierarchical structures with totalitarian Communist ones was not revolutionary (despite Mao 's rhetoric)." China is a group oriented culture. The individual is not stressed however; there is a powerful tradition of individual responsibility. An individual who doesn 't perform his/her responsibilities or neglects their duties will lose face and have to deal with consequences from the group.
Gift Giving
In business settings, gift giving should take the form of a gift hat correctly symbolizes the nature of the relationship. Gift giving is an important part of establishing and maintaining Guanxi. When going to China on business it is appropriate to bring gifts for all those you will see. There are several factors to consider when giving gifts. "The general rule is pastries for the office staff, high-quality corporate logo items (all the same) for business associates, and an especially thoughtful, somewhat personalized gift for the key man you will be working with" . The status of the receiver is important. The "key man" that you will be working with should receive a personalized gift. Often a bottle of fine whiskey or cognac is appreciated. If giving more then one gift, gifts should not be in an even number or nine. Eight is considered to be a very lucky number. Gifts are presented at the start of the first meeting as a sign of sincerity. A farewell gift is presented to you at your last meeting or when you present your gifts. Several items not to give as gifts include clocks which are a similar word for death, handkerchiefs which symbolize sadness and cutlery which symbolizes the severing of a relationship. Flowers are not usually given as well and cash should never be given. Gifts must be well wrapped and in a certain color depending on the occasion. Green, white and black are funeral colors. Blue is a color of mourning. Red and gold are royal colors while yellow and pink are happy colors and are the most appropriate for business relation gift giving.
The proper method of giving or accepting a gift is important. Gift giving is a natural part of a relationship with the Chinese and following the tradition for accepting or giving gifts is necessary. Certain guidelines should be followed for proper gift giving.
Gifts are always to be presented and received with both hands. Gifts are not to be opened in front of the giver. It is the proper etiquette for gifts to be exchanged for celebrations, as thanks for assistance and as a sweetener for future favors. You must have good reason and/or witness for giving a gift. If you are being given a gift by a Chinese counterpart and are asked what you 'd like, something reflecting the Chinese culture would be a good idea. Tea and ink paintings are gifts that reflect your interest in the Chinese culture. This shows your appreciation and can help to establish or maintain good guanxi. Business gifts must always be reciprocated. Not to do so is considered morally wrong and will cause you to lose face.
It is important to understand how to differentiate between a gift and a bribe. "Gift giving is one of the most pleasant and also one of the most difficult of Chinese customs to understand; however, the lines between gift giving and corruption are often blurred". Gifts are often given in the presence of others. If a gift is given to you in secrecy, without good reason or under any other suspicious circumstances it may be best to respectfully decline the gift. Having a Chinese partner present with you may help to keep things clarified.
Bribery and Corruption
China was ranked by transparency international as one of the most likely countries to offer or accept bribes. The President of Transparency International said "Companies in China are practicing bribery on an exceptional and intolerable scale" In 2004 China was ranked by Transparency International as being a 3.4 on a scale of one to ten, ten being the most honest and one the most corrupt. Statistics show that there have been over 200,000 reported cases of bribery from 1998-2003. China has recently made a visible effort to crack down on corruption. Many powerful people have been removed from power as a result of this latest effort. One corrupt official in southwest China was even sentenced to death in 2000 after being convicted of accepting bribes. China 's Supreme People 's Procuratorate (SPP) has been charged with overseeing the investigation and the charging of suspects particularly, those above the county level. "Many criminals are now offering officials not only money, expensive home appliances or jewelry, but also stock shares, autos, houses, overseas travels and even sexual service,". These discoveries illustrate a new trend in corruption and the way bribes can be and are given.
Steps should be taken to avoid and counter any corruption that you may face. First, since having a local partner is important for success, it would be better to have the partner deal with anyone who may be seeking a bribe. This person would be much more aware of the proper channels to use to deal with this situation. An overseas Chinese contact might even be able to assist you. It is important to have a good level of transparency with who you choose as your partner. Second, have multiple partners in different regions if possible. This will allow you to keep your interests spread out and leave you open to other alternatives. Be careful not to allow any individual to have too much power over company business. This could allow for someone to hurt the reputation of the entire company or worse. Third, good guanxi is very important for success, especially with the government. Your local partners may be able to use their guanxi with other companies or the government to assist you. Forth, offering other alternatives to whomever is seeking a bribe is a way of avoiding paying the bribe and allows the other party to save face and consider another option. Other alternatives could include technology transfer or some other renegotiation of terms.
Relationships
The establishment of relationships (guanxi) is critical for success in China. Guanxi is developed and maintained by two key elements. These are face and renqing. Face is best described as one 's public image while renqing is best described as a social or humanized obligation. "Reqing is thus a kind of favor with the inclusion of a sentimental element". Guanxi is a personal relationship that is of a reciprocal and long term nature. Western culture tends to stress individualism for personal success while Chinese culture is more group oriented and emphasizes the importance of guanxi. Western business people can establish guanxi with Chinese networks but, if you don 't have an intermediary to introduce you, it may take a good deal of time to build up trust. It is not likely that the Chinese will be quick to trust a stranger. If you are without an intermediary and must build trust on your own, it is well worth the time and money to do so. By having an intermediary, hopefully one that is Chinese, relationships and trust can be quicker established and you can save time having to prove yourself credible. You must, however, remain credible or you will cause your intermediary to lose face as well as yourself. Remember that guanxi is a relationship of reciprocity and long run nature; you will be expected to reciprocate. Guanxi is your most valuable intangible asset when doing business in China.
Greetings/Communication Styles
The western business traveler must be aware of the different greeting styles that exist in China. China is a non-touching culture. It is typical that you will be introduced and exchange business cards with your Chinese colleague, shake hands and then bow. Like gift giving, there is a fixed procedure for exchanging business cards. First, you should bring plenty because you will be giving them to everyone that you meet. Second, while giving or receiving a business card you are to do so with both hands. The card is to be held in the upper right and left corners when presenting or receiving it. You must take care to make sure that your business cards are in perfect condition. You should discard any bent, dirty or written on cards. Having your business card translated into Chinese on the other side will show your consideration. It is also a good idea to have the Chinese translation printed in gold demonstrating respect. When you present your business card do so with the Chinese side up. After this you will shake hands and bow. The handshake is done for the westerners benefit. This is not a practice that the Chinese do amongst themselves. "When the handshake does occur it is more often then not very soft, almost limp. This does not signify insincerity; rather, it is an indication of humility using a western convention". If a woman is going to shake hands she must offer her hand first to the Chinese colleague. The bow is done by placing the right fist in the palm of the left hand, holding hands at stomach level and deeply bowing. It is important to keep a smile on your face and make eye contact when first being introduced. Do not maintain eye contact beyond this. Your eyes should drop to the ground while bowing.
The differences in communication styles are important to understand. Discussing things that you may have in common with your Chinese host is a good way to start to build a personal relationship. Topics such as personal hobbies and interests are safe to talk about as is your interest in anything Chinese. Topics to avoid include politics, US-China relations, religion and inquiring about a Chinese colleague 's income or family. The use of silence is another cultural difference in communication styles. While silence may make some westerners uncomfortable, the Chinese see this as a social norm that can be a way of communication in itself. "When confronted with silence, for whatever reason, the best response is to remain silent yourself, although this may be difficult and appear unproductive for time-conscious westerners". Speaking too much is considered immature so don 't be the one to break the silence or gab too much. A popular Chinese saying is "he who speaks the least, speaks the most". While you might not be discussing business at the time, you are constantly being evaluated by your Chinese counterparts and strict adherence to the customs is important to making a good impression.
Conclusion
The Chinese culture has a great effect on the way business is done with them. It is important to learn and understand it for creating guanxi and ultimately success. The Confucian philosophy and China 's long history are major contributors to how Chinese society and Chinese business operates today. The Chinese are an honorable and humble people. There are many interesting aspects to their culture that will confuse yet amaze many westerners. Know the correct situations for giving gifts. Have a Chinese partner whenever possible. Use alternatives, local partners, guanxi and any other means necessary to counter bribery and corruption. Know the appropriate situations for giving gifts and proper protocol for accepting them. Knowledge of proper greeting styles and the protocol that accompanies them are important for a good first impression. You must, must, must establish guanxi. Whether it is through an intermediary (preferably) or your own invested time and money. This is probably the most critical element for success. By establishing guanxi you are making what should be expected as a long term relationship that is reciprocated, sometimes frequently. The benefits of this can make or break your company. The reason for suggesting guanxi as the number one priority is because this can make a lot of potential problems easier to confront and conquer. Remember, you must choose a common ground when beginning relation with your Chinese counterpart. Relate to your host and colleagues through the best neutral means possible, in order to first establish guanxi.
Bibliography:
1) http://en.wikipedia.org/wiki/Confucius
2) http://www.san.beck.org/CONFUCIUS1-Life.html
3) Global Etiquette Guide to Asia, Dean Foster, John Wiley & Sons, Inc. 2000
4) http://www.fsa.ulaval.ca/personnel/vernag/EH/F/ethique/lectures/Chine_corrupt.htm Journal of Business Ethics; Dordrecht; Jun 1999; P Steidlmeier
5) http://english.people.com.cn/english/200012/15/eng20001215_57936.html, Zhau Dengju, Deputy Procurator-General, SPP
6) Business in Asia Pacific, Sonia El Kahal, Oxford University Press, 2001