Understanding Chinese business culture and etiquette (Courtesy-www.chinese-culture)

The Initial Approach

Chinese business contacts are mostly referrals; essentially a business relationship is struck based on another business associate recommendation. The best prices and deals often comes from a strong recommendation.

However, it is common today for cold calls and direct contacts, given the availability of the internet and the competitive nature of Chinese businesses. You may source from the internet, trade fairs, catalogues and brochures, advertisements and approach the Chinese companies directly through a call or email.

Alternatively, if you are seeking to invest in a factory in China, you can approach a investment committee or a business advisory directly. They will be able to advise you on your best location based on your industry, raw material and manpower needs. Please contact us directly if you have such a need and we'll be glad to advise accordingly.

Business Relationship in China
Chinese business relationship inevitably becomes a social relationship after a while. Unlike Western business relationship which remains professional and perhaps, aloof, even after a long time, Chinese business relationship becomes a social one.

The more you share your personal life, including family, hobbies, political views, aspirations, the closer you are in your business relationship. Sometimes, a lot of time is spent discussing matters outside of business, but then a lot of time, the other party is also making up his mind about your deal based on how much he sees your personal relationship with him.

Seniority is important in China
Seniority is very important to the Chinese especially if you are dealing with a State owned or government body. Instead of addressing the other party as Mr or Mrs so and so, it is always appropriate to address the other party by his designationie Chairman So and So, Director So and So or Manager So and So.

When giving out namecards or brochures, make sure you start with the most senior person before moving down the line. When giving out a namecard or recieving one, ensure that you are stretching out with both hands with the card. Remember to face the card you are giving out in a manner such that the recieving party gets it facing him correctly.

Giving Face or Gei MianZi
Giving face (aka giving due respect) is a very important concept in China. You must give the appropriate respect according to rank and seniority. For example, if you are buying gifts for an initial contact, make sure you buy better gifts for the senior managers instead of buying similar gifts across the board.

Similarly, sitting positions in a meeting room or a dining table is accorded accordingly to rank, importance and seniority. It is good to seek advice before embarking on your first meeting with Chinese business contacts to avoid making the wrong move.

Gifts and Presents
Unlike earlier days when China was very poor, gifts, especially of Western origin was especially appreciated. Today, China produces and imports almost anything imaginable and gifts are no longer a novelty.

However, gifts are always appreciated and especially in the smaller cities or towns, will continue to play an important part in your business relationship. Do note that if you are indeed giving gifts, make sure the senior people get a better gift or at least gifts perceived to have a higher value than their junior staff.

Similarly, expect to recieve gifts from the Chinese, especially Chinese art products. It is polite not to refuse, especially if it is not of too high a monetary value.

Lunch/Dinner in China
There is no business talk in China without at least one trip to a restaurant. Sometimes, a trip is made to the restaurant even before any business discussion take place! Inevitably, the restaurant will always be a grand one and you are likely to be hosted in a private room.

There is an elaborate seating arrangement for a Chinese business meal. There are fixed seating positions for the host and the guest and then they are seated again according to seniority. This is a very important aspect of a formal dinner and it is important that you follow the rules accordingly. However, it seems that the Northern Chinese are very particular to this formal seating arrangement while the Southern Chinese has loosen the formalities somewhat.

Controversial Issues in China
There are some taboo areas in social conversations with the Chinese. Try to avoid these conversational topics as much as possible. I have seen many nasty arguements as a result of these topics:

1. You must not mention that Taiwan is an independent state or a country.
2. You must NEVER praise the Japanese or be seen to be good buddies with them
3. You can condemn Mao Tse Tung but avoid critising Deng Hsiao Ping
4. You must not praise Shanghai in front of natives of Beijing and similarly vice versa

Other than that, you are pretty safe to converse with the Chinese anything under the sun!

Old metal to become a big Afghan business (Courtesy-Sada-e Azadi Magazin)

After three decades of war, scrap metal has become one of Afghanistan’s “natural” resources.

Old military equipment such as Soviet tanks and other metal vehicles and destroyed buildings have all become sources of metal, available to be reprocessed and used to make new metal products.
The Afghan government recently entered the metal recycling business in Kabul. In early February, officials sold 750 old public Millie Buses, most of them destroyed during the urban battles of the 1990s.
This is the first time that the government has announced the sale of scrap metal. The normal route for such metal is illegal: smuggling to neighbouring countries for reprocessing.
It is hoped that a steel processing capacity will be developed in Kabul, like the factory that opened last year in Herat. The Afghan Folad factory employs more than 100 workers who make steel building products.
The initiative to process metal in Kabul will help the government reduce the eyesore created by the wrecked buses, which have become surrounded by garbage and other unpleasant waste.
Selling the metal will also make money for the government to spend on development projects.
Officials have committed to sell the metal in a transparent, three-step bidding process. They also hope it will develop a domesic metal recycling market. That way, Afghan processors will benefit from business previously done in Pakistan and the metal will be available for use in Afghanistan.
Old metal is everywhere around the country; including governmental compounds, sidewalks, highways, rivers, mountains and deserts. Besides large objects like vehicles and their discarded parts, scrap metal comes from broken appliances, wood stoves, and even drink cans made of valuable aluminium.
The department has already sold the 750 buses to an individual who bought the buses for 9,300 afghanis each, officials said.
After all the buses are sold from three compounds in the capital Kabul (Zinda Banan, Khoshal Khan and Shah Shahed areas), they will start selling old Russian-made trucks the government owns.
Recently Afghan President Hamid Karzai’s cabinet decided to rid the country of old metal. His cabinet created a commission to supervise this effort. The panel includes members from the ministries of commerce, finance, mines, justice, and the National Environmental Protection Agency.
The commission has already ordered each government ministry to gather their scrap metals, including old weapons, and put the material in once place.
Governmental officials hope they will earn tens of thousands of dollars from these metals. The money will be used in development projects.
“We will sell the metals which are useless, old and corroding,” Jan Mohammad Mohmand, chief executive for the used metal sales board and a member of the finance ministry, told Sada-e Azadi.