Building Lasting Business Relationships with the Chinese

written by Abdel Benkerroum

It is said that in the West everything is easy, but nothing is possible, whereas in China nothing is easy, but everything is possible. Those navigating China market entry understand this maxim well. They also recognize that in Chinese society, personal, professional, and political spheres overlap.

Examples abound of businesses succeeding or failing in China based on their grasp of this reality. Google’s attempts to penetrate the Chinese market are a case in point. After years of struggles, CEO Eric Schmidt stated, “China is a nation with a five-thousand-year history. That could indicate the duration for our patience.” Given the non-confrontational nature of Chinese culture, messages are never communicated bluntly, but through hints. While Schmidt’s statement can be interpreted variably, it is clear that it underscores the fact that some things in China just take time. One of those things is forging lasting relationships with a Chinese partner. It is a commonly held view among foreigners that building long lasting relationships with the Chinese party is a prerequisite to getting anything done. In the Chinese culture, this process often takes place around a tea set or a dinner table.

Reading the Tea Leaves 

In the. Chinese culture, inviting a partner to drink tea is customary. The Chinese believe it’s better to be deprived of food for three days than tea for one. This emphasizes the tea drinking process as a ritual through which some aspects of the cultural fluency in China are articulated. Far from being a mundane ceremony, it is an occasion for the Chinese party to size up their counterpart. When drinking tea, the other party is often asked about their marital status, personal achievements, future plans, experience in China, culinary preferences …etc. That exchange is meant to establish where the guest stands. Is he/she someone that can be trusted or not? Once answers to those questions are established, business topics start emerging.

Trust and patience

If you ask a Chinese businessman whether he would like to do business with someone who is competent or someone who can be trusted, he would likely choose the latter. Ideally, a partner combines both, but with 1.4 billion people, finding that match takes time. And time is a valuable commodity.

As discussions shift to business, topics are addressed in broad strokes. At this stage, everything seems opaque to the foreign businessperson with mental checklists. The Chinese party does not answer any key question with a straight yes or a straight no. Not yet, not at this stage. A “basically no problem” means “big problem”, and a “yes” is not an indication of agreement. Things start getting clearer as the exchange progresses, and as the relationship strengthens.

Think of the tea drinking ceremony as an interview for acceptance. Go along, sit back, and be patient. It is said that patience is also a form of action.

Beat the ceremony—join our China business workshop today!

Request Outline