Friday, October 30, 2009

Chinese vs Canadian Business Culture and Etiquette

Every country has its own unique way of doing business. China and Canada are not exception. Here are some of my observation on the difference or similarities between the two.

Greetings
In China and Canada, hand shakes are considered standard way of greeting when first meeting your business associate. A little casual touching during conversation is acceptable to Canadians. However, the Chinese is very conservative people and any touching other than hand shakes should be avoided especially between man and woman.

Canadians like to maintain eye contacts when speaking. While you may get some stares while traveling in China, during conversations, Chinese may not always maintain eye contacts especially between man and woman.

Concept of Time
Canadians will not wait more than 10 to 15 minutes for someone who has arranged to meet them for business. If you are going to be late, phone and advise the person expecting you. The Chinese is very punctual people as well. It is considered an insult to arrive late to meetings.

Yes and No
When negotiating with Canadians you should be well informed and knowledgeable about the details of their proposals. Thoroughness is appreciated and directness is also valued. Evasive answers are not viewed positively by Canadians.

The Chinese are well known tough negotiators. Directness is not considered smart negotiation tactics. The Chinese prefer the back and forth dance that a yes may not always be affirmative and a no may not always be dissenting. You may think that is very counter-productive and frustrating. But you must be patient and not show anger.

Business vs Personal Relationship
Canadians believe in building relationships. However, they guard their personal life and keep business relationships strictly business. The Chinese also believe in building relationships , but often business and personal relationships blend. They want to know about you like to do outside of work, about your family and friends. Many business meetings are taken place outside of the office, over dinner, at a night club or even at a karaoke bar.

Food, Alcohol and Face
These are uniquely to Chinese business etiquette. Food is a very important part of Chinese people's lives and they are very proud of their food culture. At a business dinner, it is important to try everything at least once or else your Chinese host will assume you don't like the food and will keep ordering dishes until you eat beyond your capacity.

If there is food, there is bound to be drinking. Drinking is much romanticised in China. Your ability to hold your liquor is considered reflection of your ability to get things done. It is best to use health issues as an excuse or just bring someone who can drink on your behalf.

Face might not be a familiar concept to Canadians, but we all have it. What is face? According to www.kwintessential.co.uk,

There are four categories of face. 1) where one's face is lessened through their involvement in an action or deed and it being exposed. The loss of face is not the result of the action, but rather it's being made public knowledge. 2) when face is given to others through compliments and respect. 3) face is developed through experience and age. When one shows wisdom in action by avoiding mistakes their face is increased. 4) where face is increased through the compliments of others made about you to a third party.

It is critical that you give face, save face and show face when doing business in China.

Topics to Avoid
Canadians are generally very easy going people. However, they dislike being mistaken for or being assumed they are alike to their southern neighbour, the USA.

In China, it is very important to avoid praising Japan or talk about Taiwan or Tibet independence during any conversation.