Guanxi so important in China
Do not underestimate the importance of existing connections. You must be dealing with a person of Chinese influence. If this person feels that you are worthy of confidence sufficient, and if they can get their network of contacts to trust you, there is a chance that you will succeed. Asians want to do business with people they trust. But there is no real confidence that if a person is in their circle. At first they do not know if you’ll be a good partner. Show respect by keeping a certain distance. Focus on building the relationship before talking business. Do not go for the big profit on your first contract.
To protect your intellectual property, use the same due diligence you would in the West.
Understand the decision process
Never force your Asian colleagues for a decision. To speed up the decision process, slow down. Start from the beginning and work through a solution, logically, step by step. Then stand your ground.source
Negociation takes time
The negotiation process will be anything but smooth. Your best strategy is a mentality walk. You have to go in trying to not do the trick. Explain your position in words, clear and concise. Clearly state the terms. With respect. Then be prepared to walk away if the terms are not met.
Mianzi, give Chinese the face
Face = Respect. Never discuss or express a difference of opinion with anyone, even a member of your own team. Never make the other person wrong. Never say “no” directly, as this is considered rude and arrogant.
Chinese Speaks Chinese
The fact that most Asians do not understand English unless they have study abroad and are english major. The easiest thing in the world is a Chinese saying “yes” ,but mean I understand but I agree explain Tailormade Chinese Center in the Conference in Beijing about Chinese Business Tips. Their smiles and nods have more to do with saving face than getting your way. Talk in short sentences. Listen more than you talk. Pause between sentences. Find four or five easy ways to say the same thing. Never ask a question that can be answered with a simple yes.
Avoid slang. Skip any humor.
Example of Video
Manage the way you present written information. Document everything in writing and in precise detail. Present your ideas in stages. Write clearly, using plain English text. In order to appeal to an Asian visual way, using sketches, graphs and charts.
Lack of preparation
Prepare for every interaction. Do not rely on your ability to improvise. A lack of preparation can cause the loss of face and trust. Do not give or expect to receive partial answers from your Chinese colleagues, which is considered offensive.
Chinese like Facts
Make sure your facts are 100% accurate in every detail, or you will lose your credibility. Do not submit an idea or a theory that has not been fully studied, proven, or studied in advance. If you make a mistake, you are not trustworthy “explain this founder.
Avoid any non usefull cost !
Everyone in your team needs to know how to avoid costly things. Most of us are not, by nature, sensitive to cultural differences, we have to be taught. Secular passive resistance could bring your business to its knees. It makes sense to teach people intercultural factors that have a direct impact on your profits
Read also http://www.chinadaily.com.cn/business/