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China culture & business (2): Yes and no

The fact that "yes" and "no" in China can mean the opposite of what people expect scares foreign businesspeople, who oftentimes turn to cultural consultants for help. But reading between the lines is not a Chinese invention. The Chinese just take it to a higher level and on a broader scale.

Let's say two people meet on their first date. At the end of the meal, the gentleman politely asks when he can see the lady again. What he really wants to find out is whether she wants to see him again. If she suggests a time, the gentleman secures a second date. If the answer is "I'll call you," then she is either uninterested in or unsure about it. She just doesn't want to throw in his face: "I don't want to see you again." Doesn't this hold true in most places in the world?

Well, I just revealed the secret weapon for you to interpret "yes" and 'no" in different cultures: Make your own judgment by seeking specific, action-oriented details for the next step. If a Chinese partner expresses interest in your business proposal, then try and see if he or she is willing to set up a follow-up factory visit. "I'll think about it" or "I'll get back to you" or any other vague reply that doesn't commit to a next-step action is not a positive answer.

In the Chinese culture, people prefer not to use "no" directly, in order to save the other party's face. This almost applies to all occasions (with exceptions such as in a court of law, of course). But it's more than that. Due to the absence of a credit system and the lack of regulatory enforcement, Chinese business people take their time to establish trust on a personal level for a business relationship. The American way of making quick business decisions often hits a brick wall.

As a couple of interviewees in the first program of "On the frontlines: Doing business in China" pointed out, the Chinese give the name "seagull" to overseas business people who just want to "come, shoot and leave." You need a little more patience to allow for due diligence -- in the form of after-hours entertaining or otherwise -- for both sides.

Again, the abovementioned issues are neither complex nor unique to China. In a global market, it makes things easier to keep your eyes and heart open and look for commonalities, instead of dwelling on differences.

COMMENTS (5)
Gregory Yodis:

Nina, very helpful information. I will be traveling to Hong Kong for the first time in the beginning of June and find your series on the business culture helpful. Thank you for having this blog.

Gregory in Tempe, Az. USA

Allan Goldner:

Hi Nina -- After being involved in many negotiations involving Chinese parties, I certainly agree with your observations -- particularly with the need to take time to establish trust on a personal level in order to form a business relationship -- which seems to me to be a pretty good idea.

I've observed that once in a while the lead negotiator on the Chinese side (often when he or she is a native of China with a recently earned U.S. MBA) comes on very strong and very quickly, wanting to get right to the point -- sometimes presenting a term sheet or other documentation at the first meeting, very shortly after saying hello.

When this happens, I think to myself that this negotiator is behaving in a very un-Chinese way. Perhaps Chinese and Western business people are learning each other's negotiating techniques and other business practices -- for better and for worse.

I enjoy your blog. -- Allan

Nina Ying Sun Author Profile Page:

Thanks Allan. Your point is dead-on. The Chinese people are very quick to adapt, especially those with Western education, overseas work experience, etc. I've also met many Americans who understand the Chinese culture and customs very well.

Jaqueline Panama:

Thanks for the entertaining read! Alright playtime is over and back to school work.

Anonymous:

China isn't a dictatorship

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