You know what you want to do in China, you’ve done your due diligence on the Chinese company and the people, you have a schedule and you’re standing in the passport line at Beijing/Shanghai airport.
Now, it’s time for that first meeting with your prospective Chinese partner or client. (When reading this, beware that this is a gross over simplification of a complex process, which will depend on who you are dealing with.)
The reception
Be prepared to be greeted by your first host who will probably bring an entourage and perhaps flowers. If they have arranged for you to be greeted at the airport VIP facilities, it is a great honor to you, and one which has cost them a thousand dollars or more, depending on the size of the room and the arrangements. Take note and make sure that if a deal is struck and they come to visit you in the United States that you reciprocate in appropriate fashion. In China, people will go to extraordinary lengths to be hospitable, and a stingy person is regarded with disdain. If you are greeted by an underling with some excuse about their boss being busy, also take note, as it means they may not be taking you very seriously.
You do not need to exchange business cards at the airport, but you should shake hands or nod to each members of the greeting party, starting with the senior person. The senior person will be at the center of the group, and their interpreter will be standing next to him or her. Make sure your interpreter is present and standing next to you when you say hello.
Do not complain about your trip or anything else. Appropriate subjects are your happiness to finally be in or returning to China and how nice it was of them to greet you. They will politely inquire about your trip and health, and the polite answer is to be very positive.
Beginning the face-to-face relationship on a positive note is important. If you are in the VIP lounge, there will be numerous young ladies serving tea and fruit, your luggage will be retrieved by your host and every effort will be made for your personal comfort. Let others carry your luggage and perform their functions – that is why they are there, and they want to be doing what is expected of them, especially in front of their boss. Thank you and kind remarks are always welcome, especially if said in the presence of the senior person.
Who’s at your side?
The owner/CEO of your company must go. Sending a salesman or vice president will not work. Chinese companies are pyramids, and the decision is always going to be made at the top, especially when it involves dealing with a foreign company. Sending an underling shows marginal interest and in some cases is a waste of time. They will only be able to meet with people at their level in the Chinese company, and since the decision will have to be made at the summit, it will not be productive.
In addition to yourself, you should bring the key person/people who will be handling the transaction details if a deal is made. Your Chinese counterpart will have an entourage, both to show their importance but also to honor you. It is important for both parties to personally introduce the people who will be in charge of the negotiation details and ongoing transaction. This makes the situation clear to both sides and will help things go more quickly and smoothly in the future.
Play your part
The Chinese are very concerned about face and status. They will spend a lot of time trying to figure out the status of your company and you, both for business purposes and determining who in their company you should be meeting and dealing with. The Chinese side will carefully choose the person you meet with, not based on their knowledge, but on their position in the company. This is seen as far more important than technical knowledge. The person meeting with you represents the face of the Chinese company and expresses what they think of you. If the CEO of the company is the one greeting you at the airport, you can assume they are taking you very seriously and giving you their ultimate honor.
In China, details are handled by the loyal minions who flank their leader. Chinese Laobans (bosses) are like heads of state. Their function is to observe the situation, the people and opportunity up and decide on strategy. As the leader of your company, the Chinese assume you are only concerned with the big picture and the small stuff is handled by trusted subordinates. If you have seen Chinese kung fu movies, you will note the leader never gets involved until the majority of their underlings have been killed.
If you get too involved with the details, they may assume that you do not trust your staff. It also will directly involve your Chinese counterpart in direct negotiations, which may not be their style.
You should be aware that your Chinese counterpart will be the one speaking for his or her company. The Chinese tradition is to have only the most senior person at the meeting talk. Others, if they speak, just give reports or talk about technical details. Your seat is the seat directly facing your counterpart, which will be in the middle of the conference table.
Your staff, other than your interpreter, who should sit either next to you or just behind you, should sit in descending order to your right and left. You should look directly at your counterpart when you or he or she speaks and continue looking at them when the interpreter speaks.
Rehearse with interpreter
Practice parsing your thoughts into meaningful segments for interpretation purposes. Give your interpreter a general outline of your main ideas and discussion points before the meeting. Make sure they are familiar with any technical and industry terms you intend to use. It is best to have a rehearsal of what you are going to say, which should be in the privacy of your suite. Have your interpreter repeat what you have said and make sure they understand and are comfortable communicating the meaning of what you want to convey.
There should be tea and fruit on the table as a sign of welcome. Cell phones will ring and be answered. Do not stop talking unless it is your counterpart or the person is talking too loudly. Keep hand and facial gestures to a minimum, as they make you appear out of control and are distracting. Avoid discussions of detailed business points. Instead, exchange views about how you like to do business, company histories, cultural issues and your desire to arrange a mutually beneficial deal. Pay close attention to what they say and have your interpreter and another secretary keep notes.
After the initial meeting, your vassals and theirs are supposed to huddle and handle the details.
I am not suggesting that you have to follow Chinese protocols, but you should be aware of what they are and be prepared.
Next week: The first business meeting.
