This booklet was made for Dutch enterpreneurs who are going to do business in China.

1. Amazing!
Doing business in China
Línhé huáng
linhehuang@hotmail.com
Copyright reserved

2. Table of contents
• EU-China-Holland ………………… 3
• Culture differences:
• Western countries vs China ………… 5
• Amazing China ………………………… 28
• Amazing Chinese ……………………… 34
• Amazing! Doing business in China . . 36
• More tips and details …………………. 37
• Conclusion and support ……………… 47
• References ……………………………. 50
• About Linhe Huang…………………….. 51
2

3. Regarding the size,
in Chinese eyes, Holland is like a small
province of China
3

4. EU-China-NL
27 countries 34 provinces
Size:4 million km² Size:9.6 million
km²
Size:9.6 million Size: 33,800 km²
Population:495 Population:1300 km²
million million
Population:1300 Population:16,5
million million
Currency: RMB Currency: Euro
(1 Euro=±10RMB)
Languages: Language:
Mandarin Dutch+ Frisian
+220 dialects
4

5. There is NO absolute black and white, but
in general, there are quite some cultural
differences between the Dutch
(Westerners) and the Chinese.
5

6. Leader
6

7. Giving opinions
7

8. Dealing with anger
8

9. Shower time
9

10. Self
10

11. Waiting (in a queue)
11

12. At the restaurant
12

13. Sunday at the street
13

14. Party
14

15. Punctuality
15

16. Network
16

17. Life style
17

18. Beauty standards
18

19. The daily life of the elderly
19

20. Mood and the weather
20

21. Desired vehicle
21

22. When stomach hurts
22

23. Deal with new things
Reluctant, wait and see! Take it, check it out!
23

24. Food fashion
24

25. Kid
25

26. Pet (food)
26

27. Impression of the other party
27

28. No wonder there are differences between
Western countries and China.
Even within China, you see
a different world!
28

29. Rich -Poor
29

30. Urban – Rural
30

31. Industry -Environment
31

32. Justice-Corruption
32

33. West China-Inland-Coast
Ease of doing business by region
Red circles: Main destinations China Mission 2010
33

34. For better
understanding and communicating,
you must know
the amazing facts of Chinese.
34

35. Amazing Chinese
• Extremely friendly: Nihao means You Good!
• They say: What you can catch is what you can eat!
• They never say no. In stead, they say Maybe…
• Yes could mean they heard you, even though they don’t
understand what you are talking about.
• From conditioning/explanation to conclusion.
Eg: if (long stories), then I will do…
• No eye contact, even though you might have very
attractive eyes.
• Copy right is the right to copy - Please keep in mind, I
am not proud to mention this as a Chinese. However,
who’s not downloading the music or software which you
are not supposed to.
35

36. Doing business in China, Amazing!!
• Chinese don’t have 9 till 5 mentality
• The priority to business- You will never hear a Chinese say:
I could not come because it’s my wife’s birthday.
• Price could be lowered to whatever level, If you know the diversity of
factory locations and conditions. Eg: Products could be made at a
private house, prison. You need to do research in advance to know
the bottom of the price before you get the low enough price with wrong
product.
• Fast change: make it happen NOW. When a decision is made, the
implementation could be made in 3 shifts: 24hours/day.
• Dining and wining is part of the business. It seems there are no big
differences between Chinese breakfast, lunch and dinner: It’s all
diversified and heavy (for Dutch stomachs)
• Chinese like long term business relation, as well as a long term
friendship. Don’t be amazed when your Chinese work partner treat
you as a friend, eg: Introduce you to their family.
36

37. Practical tips
• When you receive a business card, take it with two hands and nod at the same
time.
• Prepare your business card with Chinese version at one side, including a
Chinese name.
• Speaking a little Chinese is one of the best ways to show your respect on
Chinese. It will also create a friendly and relaxing atmosphere.
• Medical excuse is the best way to refuse drinks during a Chinese dinner.
• A tip is not usual at restaurant or café in China.
• A typical Dutch gift which says its culture would always be welcome. Such as
wooden shoes or tulip bulb.
• ENOUGH communication with your interpreter. let him or her know your
business, products and so on before the interpretation work.
• Sample/Product drawing says 1000 times more than word expression, for the
copyright issue, please do not consider to give a complete drawing away before
you really know your business partner.
• A Chinese assistant would help (with Dutch education/working experience)
• Guanxi is the key! http://www.youtube.com/watch?v=JKKsRc5O5eo
37

38. Guanxi (关系) is the key
In contrast to the West’s transaction-bases business
culture, Chinese business society is relationship-based.
When a foreign company wants to enter the Chinese
market, they must understand the Chinese business
culture. The most important thing to understand is the
meaning of Guanxi. Guanxi does consist of connections,
but more specifically of connections that are defined by
reciprocity and mutual obligation. Establishing Guanxi is
fundamental to the world of Chinese business. Guanxi is
grounded in trust, mutual obligations, and shared
experiences.
38

39. 3 forms of Guanxi
Guanxi exists in various forms based on the closeness of the
relationship between the parties involved. There are three levels,
each describing the degree of social proximity:
1. Jiaren: closest possible relationships. Blood relations certainly
constitute the strongest bonds of obligation, the Chinese will
consider highly trusted non-blood relatives also as family
members.
2. Shuren: non-family members with whom one shares a significant
connection. For example, people from the same town, former
classmates, members from the same clubs or societies, or friends
of friends.
3. Shengren: Strangers. A wait-and-see attitude is common when
dealing with Shengren. The focus in relationships between
Chinese and Shengren tends toward short-term benefit. It is
possible to be a Shengren in one network and a shuren or jiaren
in another. It depends on how you relate to the network involved.
39

40. To build and maintain Guanxi
• To host dinners is a smart step to built relationships with Chinese. When you host a
lot of dinners but your commitment and friendship to the Chinese is limited, dinners
are a waste of time and money.
• The giving of gifts is vital in both building and maintaining Guanxi. Gift-giving
promotes Guanxi by providing a way for people to express their interest in one
another and by establishing a basis for continued interaction. Gifts do not have to be
expensive. For Chinese, gift-giving is not just a material exchange but also, and more
important, an exchange of growing bonds of friendship. Giving a gift with symbolic
value is a way of respecting Chinese tradition while remaining under your company’s
financial cap.
• In many situations, the recipient of a gift will politely and gently push it back. There
will be a few moments of pushing the gift back and forth, but one should never openly
or positively refuse a gift from another individual. Any favor/gift should be repaid with
a slightly larger one.
• The durability of Guanxi depends on a number of factors, including the intensity of the
relationship and the way in which it is maintained. In case of the Jiaren it may last for
life. For the Western businessperson, the key to maintaining Guanxi lies in continued
interaction with your Chinese associates. What is important: stay in touch with your
friend (phone calls or notes), inquire about their families and keep the reciprocity
alive.
40

41. Mianzi (面子)
• Mianzi, or face, is inseparable from the concept of social roles.
One’s role becomes one’s self-image or face which must be
preserved to keep the social order intact. Mianzi denotes a social
standing based on one’s character and reputation within a given
social group. Mianzi is also reciprocal: it is a shared responsibility
not to damage the standing or reputation of others. When you cause
another to lose face, you damage not only their reputation but yours
as well. It is an intangible form of social currency, “group credit” that
the whole community seeks to maintain.
• It is also important to emphasize that mianzi often takes the form of
symbolic gestures as well as substantial acts.
• Mianzi can exist only in relations to others; without relationships,
there is no possibility of self-recognition, and no face. The activating
ingredient of any relationship is reciprocity, a principle fundamental
to all Chinese business and social interaction.
41

42. Harmony
• Chinese culture places a high value on the preservation of harmony,
which is said to be not only at the core of Confucian principles but
also at the origin of the world. To attain harmony, individuals are
expected to subordinate themselves to the good of the family (and
by extension of the business) and adhere to the spirit of the middle
way. When a system is harmonious, it has achieved a balance
between divergent tendencies. Chinese understanding of balance is
dynamic: it requires constant readjustment and adaptation. The
Chinese seek harmony and balance in all aspects of their lives.
• From a business perspective, personal growth at the individual level
is expected to lead to greater success for the company; therefore, a
well-managed business starts with a well-managed individual and
family.
42

43. Weiji-crisis/opportunity combined
• The Chinese translation for crisis is weiji, in fact wei
means danger, while ji means opportunity.
• From the Chinese point of view, crisis appears not as an
insurmountable problem but as an aspect of
transformation. It demonstrates how paradoxical thinking
can lead to opportunistic action.
• Many Chinese business people are practical and
entrepreneurial and can act swiftly. The ability to
combine patience with speed is one of the greatest
strengths of traditional Chinese businesses.
43

44. Communication differences
Concerns Saving face Frankness & honesty
Respect & politeness Assertiveness
One example about
Compromise Self-assurance
&flexibility
differences in
General feeling Specific terms
communicating: Western
people shall say We
Social status Task at hand
cannot do that and
Patience Time efficiency Chinese people shall say
Style & Reserved Extroverted It might be a little bit
Practices difficult for us to do.
Tentative Firm
Personal Impersonal
No body contact Hugging and back-
slaping acceptable
44

45. Win-Win
In the Chinese way of thinking, competition and
collaboration are simply two sides of the same coin, not
two totally different things. The Chinese are also big fans
of win-win situation. This means that it’s better for both
companies (in cases with joint ventures etc). They also
use cooperation with other companies to make peace.
Another way Chinese used to avoid confrontation is by
turning potentially competitive situations into
opportunities for collaboration. Instead of seeing
opponents in absolute terms, the Chinese look for ways
that common ground can become part of competitive
strategy.
45

46. Language basics
English word Chinese word Pronunciation • When you hear a few Dutch
Hello Ní hăo Ni hau
words from a non-Dutch with
My name is Wŏ shì Woh shuh
some accent. I guess you must
How are you? Ní hăo ma? Nihau ma
be surprised and laugh at it
I am fine! Wŏ hěn hăo woh hen hau
friendly.
And you? Nĭ ne? Nineh
How much is it? Duō shăo qián? Doshau tjen • Well, if so, learn some Chinese
It’s too expensive! tài guì le Taigwele to surprise the Chinese! You
A little cheaper! Pián yí diăn Pjen-i-djen will see it’s one of the keys to
Thanks! Xiè Xie Sje sje build relation with Chinese!
You are welcome! Bú kè qì Boekatji
Cheers! Gān bēi Gambee!
Yes! Shì de seh de
No! Bú shì boe seh
46

47. Conclusion
• It’s a huge country
• Different game rules both in life and
business
• What is in common: We all like
Win-Win!
• To win your business in China:
you need to prepare yourself
systematically!
47

48. Support from all directions
1. Support from the Province of Gelderland and NBSOs in China
Mr.Peter de Jong (known as China Man) from International Office of Province Gelderland has
more than 10 years experience in China Missions, and he has dedicated to bridge the
business between China and the Netherlands.
NBSO-Netherlands Business Support Offices in China could support you to connect your
business to local enterprises,
2. HAN (Hogeschool van Arnhem en Nijmegen) support :
Student projects from HAN Minor Asia Study-Doing business in China
Chinese student at HAN who is looking for an internship or graduate assignment would always
be practical and economical
3. Support from Linhe Huang (Lin)- Freelancer China Master
Editor of this booklet
A Chinese with Dutch attitude and education (International Business and Management)
See more info of her at the last page of this booklet.
4. Recommended books by Linhe Huang (Lin):
Art of war-Suntzu
Inside Chinese business-MingJer Chen
Myth about doing business in China-Harold Chee
48

49. The key is in YOUR
hand!
I wish you amazing
success in this
amazing country
called CHINA!
49

50. References
• http://www.chinese4kids.net/blog/a-virsual-
comparison-between-chinese-and-german-
culture/
• Inside Chinese Business -Ming-Jer Chen
• Booklet Doing business in China - Program
Minor Asia Study from Hogeschool Arnhem
en Nijmegen (HAN)
50

51. About Linhe Huang
• Management Assistant: International
affairs at Province Gelderland
• Lecturer Chinese language and
culture awareness at Hogeschool
van Arnhem en Nijmegen(HAN)
• Organizer and guide of China trips
• Bachelor “International Bunisness
Management” -Hogeschool van
Arnhem en Nijmegen (HAN)
• Graduate assignment at VMI
(www.vmi.nl): One of the research
Freelancer China Master topics is how to work EFFICIENTLY
with Chinese business partners
51