Q: Are there business etiquette issues I should be aware of in China?

A: Doing business in Eastern cultures like China brings a host of issues regarding business etiquette. A simple example would be the manner in which business cards are exchanged. A basic difference is that they call it a name card. When meeting for the first time, you should hold your name card with two hands at the top corners of your card. The card should be readable from the receiver’s viewpoint. In China, there is no need to curtsy or bow when exchanging cards, but in other Asian countries, notably Japan, it is. The receiver of your name card will have their card extended out in the same manner. At the same time, you should exchange the cards with both hands, read the card (even if it is in Chinese) and continue to hold it during a conversation if you are standing. If you are at a table, it is good etiquette to put the name card you received on the table in front of you for the duration of the meeting. It does not matter who puts the card down first, nor who picks up their card first after the meeting is concluded.

Another significant difference is in the manner and the length of meetings. If you are working in China, you will most likely be dealing with a State Owned Enterprise (SOE) or Chinese Government agency. There are strict methods to how meetings are conducted when working with these organizations. Meetings usually start around 10:00 a.m., giving the SOE or government agency plenty of time to get into work and not be late for the meeting, as traffic is a big issue in all major Chinese cities. Being late for a meeting is a big no-no. Being Western and a guest, it is usual for you to bring a small gift from home as a gesture of friendship for the first meeting. The Chinese may or may not provide a gift to you. The Chinese view gift-giving as a trust-building exercise and one that brings friendship and business into close range. The term, "Business is business, friendship is friendship" does not exist in China. Be careful about what gifts you do bring, as the Chinese see meaning behind many things. You will be safe with U.S. homegrown items such as souvenirs, sealed food packages, etc. Just make sure they do not have the familiar "Made in China" sticker on them.

You are usually seated in teams, Chinese on one side of a meeting table, Westerners on the other. Do not be surprised if your seating location has you with your back to the door, as the Chinese like to control the environment and see who is entering the room from time to time.

After the gift exchange, the Westerner is given the floor. Most Chinese in the real estate and construction industry do speak a decent level of English, but having your own good interpreter for Mandarin Chinese is expected. If you are working in Shanghai, it would be a good idea to have your interpreter also understand the Shanghai dialect, which is quite distinct from Mandarin and very important in conducting delicate negotiations in Shanghai.

After providing you with time to introduce yourself, your team, your organization and your viewpoints on the project or business deal, you then turn the floor over to the Chinese. More times than not, you will be faced with an entire team on the other side of the table. The Chinese treat a meeting very seriously and the important players will always be present. The first person to speak will usually be the leader, who will welcome you and briefly, very briefly, introduce himself and the project. Then each team member will begin to talk about what you brought to the discussion and begin a critique of your presentation. The order of speakers is from lowest to highest ranking of their team. This critique will happen even if there is no business reason to critique! They will usually make a minimum of three major points, sometimes raising their voice for emphasis. For those not used to this way of getting your point across, it can seem as if they are upset. They are not. The party system in China has a specific method for oration and all Chinese who are in government or SOEs are taught in this manner.

After each person on their side has had their say, there is a break for lunch, which is usually at a traditional Chinese restaurant in a private room. Chinese restaurants all have a large number of private rooms where business luncheons regularly take place. Business discussions are kept to an absolute minimum during this hour-long meal. There is usually a large, circular table with a lazy susan in the middle. Numerous dishes are brought out and people at the table take their food from this rotisserie. As their guest, you will be first to pick your food. Use your chopsticks and watch how the others take and place their food. Sometimes they put their food into one of the small bowls and eat the food directly out of the small bowl. Other times, they use their small plate. Watching and mimicking others' eating and drinking methods will ensure that you do not create an uncomfortable experience. You are not forced to eat everything that is on the rotisserie, but if you take something onto your plate, you are expected to eat it. From my experience, I don’t ask what things are until after the meal. You will surprise yourself at what actually tastes good. Small talk usually is the focus in these luncheons and you are usually back to the meeting table in about 90 minutes from when you left the room.

The afternoon meetings are usually interrupted from time to time with each side taking 10 to 15 minutes to discuss what has been talked about, gather consensus and then reconvene to state each side's case until an agreement is reached. It is also normal for all participants in the meeting to be invited to a dinner immediately following the meeting. Like the luncheon, it usually a traditional Chinese dinner in a private room that follows similar rituals, methods and manners.

A Chinese business meeting is not a fast 30-to-60-minute gathering to discuss issues like we have in Western business. Meetings are considered to be very important elements of a relationship and are day-long events that culminate with dinners that last until mid-evening. By understanding this Chinese business etiquette, Western business people can mange their expectations on how their time is to be spent in China and create an environment for success.

Thanks to Paul Doherty, AIA. He is the managing director of General Land Corp., a full-service, global real estate development firm with a focus on the Asia Pacific market. He is an author, educator, analyst and consultant to Fortune 500 organizations, global government agencies and prominent institutions and is on the board of directors of the International Facility Management Association (IFMA). He can be contacted at pdoherty@general-land.com.

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