Tag Archives: Business Relationships

COMMUNICATION TIPS, LIFE IN CHINA

3 Ideas For More Effective Networking With the Chinese

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Networking in China

Do you want to expand your circle of Chinese business contacts? Do you want to make more Chinese friends? Are you unsure how to talk with the Chinese at networking and other social events?

Networking events have become a very popular pastime in Mainland China, especially in areas with a large numbers of Western expatriate workers. But aside from providing Westerners with the opportunity to relax and expand valuable networks of Western business and personal contacts, there is the potential to connect with the Chinese as well. Although the more conservative ideas and beliefs of the Chinese on social and business relationships do not often mesh well with more open and relaxed Western networking practices, this has not prevented a growing number of Chinese locals from attending networking events, especially  in the big cities. These not only include younger Chinese who have previously studied and worked overseas, but also more “local” business people and officials.

Despite the opportunities presented by this upswing in Chinese attendees, connecting with them is not as easy as you might first think. Overcoming differences in culture, language, and communication styles might initially seem like a simple proposition, but in realty can present a greater challenge. However, with a little practice and some insights into how the Chinese communicate, things can become a lot simpler. In the following article I share a few important tips on how to take the first step in connecting with the Chinese, whether for business or pleasure.

It’s Important To Actually Approach the Chinese

Creating relationships with the ChineseOne problem I’ve seen prevent other Westerners from effectively connecting with the Chinese at events is an initial unwillingness or hesitance to approach them. This does not usually stem from any kind of ill will, but rather from language barriers and differences in communication styles. Many Westerners new to China have not had much experience with the Chinese language or culture, and this can lead to a great deal of stress, especially following a long work day. Many Chinese attendees, especially those older or more senior, are more reserved or hesitant to speak in English for fear of embarrassment. Thus, it might be no surprise that at these types of after work social and networking events, the room often separates out into two distinct groups – locals speaking Chinese and Westerners speaking in English (or another Western language).

However if you are really interested in making new Chinese contacts, someone has to take the first step, and why not you? Simply find a group, and insert yourself into the conversation with a hello or “ni hao,” and the group will almost certainly move to welcome you. In addition, it’s worth considering that any Chinese “loners” at a given event may turn out to be a more senior, or possibly more local individual (with more local connections), and seeking them out will at the very least provide you with a a good introduction to more local Chinese communication styles, and potentially a good contact with local industry connections.

 Try To Create an Emotional Connection 

It is also worthwhile to consider the idea that, through emulating local Chinese communication styles, you may allow yourself to create a greater degree of rapport with the Chinese. While this prospect may seem difficult or uncomfortable to some readers, for those who sincerely wish to expand their network of Chinese contacts, creating an emotional connection in your conversations with the Chinese can be incredibly effective. Due to traditional Chinese concepts such as Face, and ideas of proper behavior, conversations can take on a slightly different tone between Chinese attendees of networking events, and contain nuances separate from the experiences of most Westerners. And because Chinese relationship networks tend to be much more personal than many in the West, the Chinese prefer to feel some sort of emotional connection when networking or meeting new contacts. If Westerners can tap into this type of connection when networking with the Chinese, then it will be possible to more quickly and effectively create new friendships or partnerships.

In practice actually emulating or copying specific Chinese communication styles effectively can be difficult at first. Therefore from my own experience in China I have selected several simple methods, displayed below, which Westerners can use to immediately start building an emotional rapport with the Chinese:

  1. Offer more compliments than usual: Face is such a rudimentary part of Chinese people’s daily lives that even among close friends and business partners little compliments fly back and forth simply on pure reflex. If you can pick up on this “rhythm” of the conversation, native Chinese will likely feel more comfortable around you.
  2. Let your enthusiasm show through: The Chinese focus on Face and relationships also combine to create what can only be described as an atmosphere of greater enthusiasm, as if everyone were best friends. Therefore its not advisable to be cool, and reserved when trying to make new Chinese friends and contacts.
  3. Defer to age and seniority: There is a cultural attitude among the Chinese to respect those that are older, more experienced, more senior, or simply those who have a higher status (e.g. famous). Those in these positions expect this type f respect even at casual events, and providing it can engender positive feelings between the two of you.
  4. Try out some Chinese: The Chinese take pride in their country, culture, and language and seeing a Westerner try to speak Chinese with them will usually impress them and demonstrate your own appreciation of China. And when you are talking with Chinese people who are unsure of their own English language skills, being able to communicate in Chinese is an easy way to get the conversation started.

With regard to the above ideas on emulating Chinese communication styles, it should be noted that the Chinese (all of us, in fact) respond to interpersonal communications both consciously as well as subconsciously. This means that although a Chinese person will almost certainly consciously recognize that Westerners communicate differently, they can rarely escape the subconscious reaction to respond positively to the application of Face or other Chinese communication styles. In contrast, a Westerner who adamantly refuses to adapt to local communication styles, may find it difficult to create strong and lasting connections with the Chinese.

Know How the Chinese Think About Relationships

20120817001Another very Chinese concept you might want to keep in mind when networking with the Chinese, is that of Yuanfen. While many Westerners may have never heard of this term, the idea behind it is simple enough, that some relationships are predestined, and some people are pulled together by the mysterious forces of the universe. While many younger Chinese only give credence to the romantic implications of Yuanfen, older and more traditionally minded Chinese are much more likely to view Yuanfen as relevant to all relationships, including business and politics. And when a Chinese person believes in Yuanfen, first impressions can matter a lot. Specifically, if a Chinese person discovers you share a common background, interest, or professions, in addition to experiencing the type of emotional connection described above, they may decide they have Yuanfen with you right away. Therefore make sure you put your best face forward lest a potential friend or business partner slip through your fingers and a potential opportunity be lost.

Final Thoughts

When networking in China, whether for fun or professional reasons, the more time and effort you invest, the more you get can get back. In my opinion, by not networking with the Chinese, a Westerner loses out on a potential valuable opportunity to make new friends and learn about a new culture. For the business minded, you never know who might be a potential business partner you might not have approached otherwise. All in all, life is a journey, and knowing more people helps you get where you want to go faster, and have more fun along the way.

Thanks for reading!

Do you have any additional questions about communicating effectively with the Chinese at networking events? Do you have positive stories of your own you would like to share with other readers? Please feel free to post your thoughts in the comments section below.

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LIFE IN CHINA

The Difficulties in Connecting With Influential Chinese

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In China it is common to encounter Western business people looking for introductions to Chinese executives or government officials. This is usually accompanied by the idea that these kinds of powerful connections, or guanxi, can be the lynchpin in establishing a successful business or venture in the Chinese market. And while possessing strong guanxi in China can indeed help one’s business to grow and flourish, actually obtaining it is not as easy as some may think.

The Chinese think about introductions and networking in a very different manner than most Westerners. While many Western business people thrive on an open and all inclusive model for meeting new people, influential Chinese business people are more low-key, and prefer to remain within their own social circles. Despite this, it is indeed possible to network with and obtain introductions to the influential in China, though, to succeed, it is essential for Westerners to study and understand the Chinese mindset. Below, the author lists several common points of concern he has observed in Chinese executives and officials.   

“Who Are You and Why Should I Care?”

Power and money are the true capital in modern China, and the Chinese business and political “influencers” do not exit on the same level as the rest of Chinese society. In order to be able to directly connect and converse with these influential Chinese power players, it is vital to possess something to which they can respect and relate. For example, CEOs and top executives from well known Western MNCs will have a better chance at obtaining introductions or meetings with their Chinese counterparts. This is not merely due to a relative equality in position and power, but also because high-level Western business people (and politicians) are likely to have high-level connections within their own countries. However, for entrepreneurs and executives of smaller companies, a lack of prestige and connections may prove to be a barrier to obtaining introductions. Status is very important in China, and unfortunately some people just do not “make the cut.”

“Why Should I Share My Network With You?”

Although the Chinese in general are very polite and enthusiastic when talking to Westerners, they are also usually more reserved and cautious with their personal network of contacts. To a greater extent than many countries in the West, the Chinese rely deeply on their networks for both social and business functions, which are essential to life and business in modern China.  In fact, many successful and influential business people in China have succeeded specifically due to their own networks. As such, the Chinese are usually very cautious about opening up such an important part of their life to someone they don’t know, no matter how powerful. Therefore, networking in China seldom occurs as it might in Western countries. Generous amounts of time is required for both parties to get to know one another other, both before and after an introduction takes place. After all, to paraphrase an English expression, the Chinese don’t let just anyone see the goose that laid the golden egg.

“What’s In It For Me?”

Even if an influential Chinese person is impressed with a Westerner’s position and with what he or she can offer, there may be an additional factor causing an influential Chinese business person to hesitate. After all, if a Westerner is offering a potential Chinese contact, introduced through a Chinese intermediary, a chance to increase their own money, influence or power, why should the intermediary not get anything in return? In fact, many introductions that take place in China are not necessarily one close friend introducing another. If a Chinese person claims to have guanxi in a certain sector, they may simply mean that they “know a guy” who then knows “another guy.” Therefore, if the person that they are introducing may not actually be a close friend at all, there may be no guarantee of a payout for the Chinese contact. In these cases the Chinese which a Westerner hopes will provide an introduction may feel more comfortable waiting until they get something which they want. It is also common practice in China, especially in sales, for facilitators of business deals to receive unofficial commissions or other perks. Within the sometimes-murky realm of high-level personal relationships in China, nothing is free.

“Will This Damage My Relationship With My Contact?”

Lastly, the Chinese people are universally concerned about staying on good terms with their business and personal contacts. Thus, before providing introductions into their network, one issue an influential Chinese person will consider is not only the potential benefit (for their contact as well as themselves), but also any potential risks as well. For example, if a Chinese person discovers any risks to a valuable relationship, he/she will likely choose to pass on providing a specific introduction.

How Can “Regular” Western Business People Get Introductions in China?

Unfortunately, there just isn’t any quick and easy way to gain instant access to the rich and powerful in China, especially if one lacks power and prestige of one’s own. However, this does not mean that it is impossible to gain access to influential Chinese business people.  This author, through his own experience in China, points out a few tips below that could help:

1) Spend time on-the-ground in China: When it is impossible to reach out and connect with powerful Chinese directly, it may be necessary to first spend some time in China, learning about the business environment and working within the local business community. Many Chinese cities, especially the large metropolises, possess numerous business and trade organizations at which it is very easy to meet and greet a variety of Chinese business people. Through this type of networking, it may be possible over time to slowly get in touch with influential Chinese.

2) Create a Successful Company: Creating your own company or venture, which either has a strong advantage in the Chinese market or presents advantages for Chinese companies doing business abroad, can create new corridors for connecting with influential business people in China. On one hand, a successful company or brand may entice offers for partnership or purchase. On the other, certain Western regions (e.g. Silicon Valley in the USA) have large entrepreneur communities focusing on the Chinese market. Networking in your home country in this context may present the opportunity to meet powerful Chinese VC executives, who in turn would have their own powerful circles of contacts.

3) Expand your network in your home country: Building a strong network of connections in one’s own country is also a method which can build a foundation for later contact with China’s business “influencers.” This is especially relevant in light of the fact that an increasing number of Chinese companies are starting to set up operations in foreign countries. While its true that many Chinese returnees or overseas workers join these companies, there is no substitute for a lifetime of experience in one’s home country. If a Westerner has something the Chinese want (e.g. connections and knowledge), they may have the chance to get to know some of the powerful executives in charge of these firms.

Thanks for reading!

Do you have any additional questions about connecting with the influential business elite in China? Do you have any helpful examples from your own experiences from working with the Chinese that you would like to share? Please feel free to post your thoughts in the comments section below.

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CULTURE BASICS

What is Guanxi – Relationships in China

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What is Guanxi?The phrase “it’s not what you know, but who you know” is well known in Western business circles due to the fact that having the right contacts can provide a great deal of assistance in advancing one’s career and closing important business deals. This idea takes on a much greater significance within China, in which business organizations and social circles are often nepotistic in nature. That is, relationships do not merely supplement an individual’s effectiveness in business and dealings in everyday life; instead, relationships form the foundations upon which business and society are built upon.

Many Chinese business people rely almost exclusively on their personal relationships when conducting business, and protect their networks with a level of devotion rarely seen in Western countries. In the following article, several key aspects of relationships, or guān xì  (关系), in China will be explored with the goal of acquainting the Western business person  with the basic fundamentals of how relationships work in China, as well as how to build successful and fruitful relationships with the Chinese.

The Cultural Roots of Relationships in China

From a cultural perspective, Confucianism (a 2,000-year-old Chinese philosophy) places a strong emphasis on observing the proper relationships as the key to social harmony. The key “Five Relationships” stressed in Confucianism (as well as in Filial Piety, an important concept to the Chinese family) place importance on each citizen in a nation knowing their position in society and understanding the expected behavior inherent to that position. The specific relationships include:

  1. Ruler to Subject,
  2. Father to Son,
  3. Husband to Wife,
  4. Elder Brother to Younger Brother, and
  5. Friend to Friend.

Four out of these five relationships are solely related to family and close friends; it is therefore not surprising that many, if not all, of Chinese guān xì networks are composed of friends and extended family, especially among local businessmen in China’s interior.  From a geographical perspective, the large size of ancient China, coupled with difficult terrain made long distance travel next to impossible  before the arrival of modern transportation.

“Your network of “relationships” is like a bank, “face” is the money, and “giving gifts” is the way in which you conduct your deposits and withdrawals.”

– James Tan, Sales Manager, Manufacturing Industry, China

Chinese culture has also long placed an emphasis on revering, and to a degree, worshiping one’s ancestors. Key to this concept is that in order to properly revere their ancestors, the Chinese found it necessary to regularly pay their respects at the graves of ancestors, or at the ancestral shrine located in the home. These factors led to generations of a single family largely staying in the same area with little migration to other parts of the country. The results of these geographical factors are that many personal and business networks were and continue to be strongest at the town, city or provincial level.

Relationships in China Today

Due to the autocratic nature of Chinese governing systems and methods, there has always been a lack of fair and reliable social and legal institutions within China. Because of this, Chinese people today often feel that they are only really able to truly trust and rely on their closest friends and relatives. For example, as opposed to the relatively fair and impartial courts that exist in Western countries, in China judges can be easily be influenced (or given orders) by high level officials (or influenced by said officials friends).  Thus, when forced to contend with the high-powered guān xì networks of others, in China one of the only defenses is to develop a strong network of one’s own.

Learn More about Guanxi: Yuanfen and Social Relationships

In addition, unlike as in the West, most Chinese business people are not accustomed to “business only” relationships. Rather, they prefer to create a friendly and personal relationship first, and then conduct business afterwards. And aside from cultural preference, there is a strong business reason for doing so. Despite the fact that almost every company will sign a contract at the commencement of a business deal, the actual ability of a company to enforce said contract is many times low, especially for smaller companies. China’s ineffective legal system can take years to successfully resolve cases, and many Chinese firms don’t have the time or money to wait for a favorable resolution. By focusing on developing a strong relationship first, as opposed to a formal and tightly worded contract, local Chinese business people can more easily be assured of a long-term and profitable collaboration.

Advice for Westerners

For the Western businessman new to China, it is useful to remember that your Chinese business partner will likely want to get to know you first before cooperating. This process can take anywhere from a few weeks to a few months, so it is important to allow enough time and not simply expect to arrive in China and sign a contract. And while it might be possible to get around building a relationship in some cases,  engaging in the process with a Chinese business partner will help assure them that both parties can and will share a common ground and understanding.

“Sometimes a person’s personal network is natural, consisting of relatives and old classmates; however creating a relationship with a stranger requires an emotional and financial investment. For example, if I go to the Public security Bureau to apply for a passport, the normal process is 10 days – however if I have a relationship with someone at the Bureau, then I can receive the passport on the second day.”

– Michael Qin, Manager, Energy Technology Industry, China

In order to create successful relationships with the Chinese, it is also important to be able to grasp some additional concepts in Chinese culture. Understanding the Chinese concepts of “Face,” “Giving Gifts,” and “Proper Character”  can not only provide fresh insight into the minds of the Chinese, but can also greatly increase a Western business person’s ability to create strong relationships and communicate effectively . Remember that although many Chinese have knowledge of Western practices and experience dealing with “unenlightened” Westerners, they are still Chinese at heart. Trying to do things their way not only shows respect but also shows your commitment to a long-term relationship in China.

Thanks for reading!

Do you have any more questions on how relationships work in China? Can you share any experiences you have had in China with relationships? Please feel free to post your thoughts in the comments section below.

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