Western buyers often struggle with Chinese business culture. Here's what you need to know.
The Concept of "Guanxi" (关系)
In China, business is built on relationships, not transactions.
Do:
- Invest time in building personal relationships
- Share meals and drinks (business happens outside the office)
- Be patient—trust takes time
Don't:
- Rush to close deals on the first meeting
- Be overly aggressive in negotiations
- Ignore social invitations (they're part of business)
The Art of "Face" (面子)
"Face" = reputation, dignity, honor.
Do:
- Give compliments publicly
- Criticize privately (never in front of others)
- Show respect to senior people
Don't:
- Embarrass someone in public
- Say "no" directly (use "maybe" or "we'll consider it")
- Be overly blunt
Negotiation Tactics
1. Start High, Expect to Compromise
Chinese suppliers expect negotiation. Their first price is never their best price.
2. Use Silence
Don't fill every pause. Silence is a negotiation tool in Chinese culture.
3. Bring a Gift
Small gifts (local specialty from your country) build goodwill. Avoid expensive gifts (can be seen as bribery).
Kunlun Growth's Advantage:
We bridge the cultural gap. Western-educated, Chinese-native team. We understand both sides.
We bridge the cultural gap. Western-educated, Chinese-native team. We understand both sides.