People's willingness to express themselves and take risks is different. Americans are open-minded, straightforward, and easy-going. They have rich facial expressions, revealing to some extent whether they are happy or unhappy and whether they have done their business successfully or unsuccessfully. Americans can more easily say "no" and are more likely to show their frustrations and anger when things are not working out. In negotiations, Americans can be more than emphatic in their demands. The Chinese on the other hand, are rather introverted and conservative, and they don't reveal their feelings easily. They treasure something inside. It's hard for them to say "no" if others ask them to do a favor. The Chinese are more indirect in their behavior.
In business, greetings are accompanied by exchange of name cards. The Chinese offer their name cards with two hands to show their respect. After receiving the cards, they will look at them and read them silently so that they can remember the other person's name, his company, and his business status, to show interest in the other person. In the U.S., business cards are exchanged less often. The card is not ordinarily offered when people first meet but rather if one of the parties wants to call or send something to the other. Americans present their business card with one hand, accept the other person's card, and tend to put the card away without looking at it. They are expected to remember the other person's name and affiliation without the help of a name card.
Americans emphasize verbal skills. In business, Americans often make oral presentations without any papers in their hands; and if they have a paper, they try not to read it. The Chinese, on the other hand, are accustomed to making their speeches from written pages. This emphasis on verbal skills also arises in the tone and focus of a job interview. The American interview emphasizes oral presentation where applicants sell themselves. American applicants are more aggressive and seem more confident than Chinese applicants (Yu & Murphy,1993). In China, the focus is on the applicants' written materials such as educational background, experience, achievements, and evaluations from past years. The Chinese interviewer will read the materials carefully. During the interview, the Chinese applicant will appear to be very modest and courteous. If the applicant is very aggressive and boasts about himself, he will be considered too arrogant and conceited and will probably not be acceptable to the Chinese interviewer.
Another difference arises regarding smoking. In China, as more and more business people have started to smoke, businessmen will offer a cigarette to their guests or friends. Not doing so would be considered mean and rude. In the U.S., however, smokers may ask the guest "Do you mind if I smoke?" but generally do not offer a cigarette. In China, when a businessperson goes to a company or corporation, the host almost always offers a cup of tea. The Chinese don't care whether the guest drinks the tea or not; but if a guest does not accept the tea, they will continue to offer something else to drink. In the U.S., coffee is sometimes, but not always, offered. If the guest does not want to drink coffee, it is not at all rude to decline and to say "no, thank you."
When American businessmen want to break into a market or promote sales, they pay great attention to market research and analysis based on statistics and facts. They stress the qualities of their product, they tout their company's credit standing and achievements so as to expand and develop their business. In China however, personal relationships come first. Chinese businessmen start to make friends with their customers, to build and develop the relationship. They promote their business through their personal contacts ("guanxi"), dinners, gifts, and friendly experiences. After they have a good relationship with their customer or client, then they begin negotiations and do business, through formal dinners and lunches. Although Americans also extend invitations for elaborate dinners, lunches or "power breakfasts," they do not usually do this to entertain their counterparts. Actually, Americans do not want to waste time eating and prefer to combine meals with business. Business does not start immediately for the Chinese; first, a friendship must be formed. Americans generally try to find something personal to chat about before they conduct their business but have no real interest in making friends in their professional dealings. Although it's not easy to make friends with the Chinese at the very start because they are rather introverted, the friendship is a lasting one when you do become their friend.
For Americans trying to do business in China, recognizing cultural differences is the first step in reducing the difficulties of dealing with culture. The introverted nature of the Chinese, their greeting habits, the considerations of the business card, the approach to the job interview, manners regarding the offering of a cigarette or beverage, and understanding the importance of developing personal relationships helps in dealings with Chinese business people. Recognizing and understanding cultural differences is the first step toward successful business.
Work Cited
Brunner, J. A., Koh, A., & Lou, X. "Chinese perceptions of issues and obstacles confronting joint venture." Journal of Global Marketing (1992): 6,97-127.
Yu, J., & Murphy, K. "Modesty bias in self-ratings of performance: A test of the cultural relativity hypothesis." Personnel Psychology (1993, summer): 46(2), 357-363.