China business travel information

Doing business in China

China has not escaped the recent global economic crisis. With an economy heavily dependent on exports to developed markets, the sharp drop in global consumer demand has had a important effect on China’s economy. In 2007 China’s economy grew by 13 percent and had maintained over 10% growth for most of the past decade.

In 2008, inflation, measured by the country’s consumer price index, dropped slightly from the year prior to about 6 percent but continues to be an economic threat. China’s manufacturing base helped the country hit record trade surplus levels of € 189 billion in 2008. Foreign investment is strong with China remaining as one of the main destinations for foreign capital investment, though growth began to slide in 2008. China’s economic miracle is tempered by a number of looming threats, namely a rapidly aging population and a perilously deteriorating environment.

In the end of 2008 the Chinese government, in order to shore up the weakening domestic economy, unveiled a € 371 billion (RMB 4 trillion) economic stimulus plan. € 168 billion, or 45 percent, of the stimulus package will go toward the construction of railways, highways, airports and power grids; another € 93 billion will be used for post-disaster reconstruction, which includes rebuilding after snowstorms that hit Central China in early 2008 and the earthquake that struck Sichuan province in May. € 34 billion will go towards rural development and infrastructure projects; € 32 billion has been earmarked for ecological environment; € 26 billion will be used for low-income housing; and the rest will be spent on health, culture, education and innovation.

Despite these remarkable changes, China is still a developing country, although one with vast potential. Spread over a population of 1.3 billion, China’s colossal economy does not represent a large amount of disposable income for each person. Annual per capita income in China is around € 1.100. Yet, surprisingly, China stands as the world’s third largest market for luxury goods behind Japan and the United States. The income distribution within the country is highly uneven with urban centers, such as Beijing and Shanghai, enjoying a per capita income of more than double the nation’s average. Some studies estimate that there are now more than 200 million Chinese citizens with a per capita income over € 5.000. That said China’s per capita income figures are poised to change dramatically. Over the next several years, many economists predict a surge in the number of people achieving middle class status.

Some facts in a list:

Product tip: Keep an eye on the size of your trolley Many luggage stores sell suitcases described as ’carry-on’, but these suitcases are sometimes larger than the size most airlines will accept. The safe maximum size is 114 cm, in the form of a 55 x 40 x 20 cm bag. Some airlines allow up to as much as 140 cm, but most do not. Not only do luggage stores and manufacturers seldom tell you if their bag is legally sized or not, but they also frequently mis-measure their bag. Their measurements generally are for the inside of the main compartment, and assume that any external pockets are of zero thickness, rather than stuffed full of things (which can easily add another inch or more) and ignore any external framing such as wheels and carry handle (which can also add another couple of inches).

Business Etiquette and Protocol

If your are planning a business trip to China it is a good idea to know at least a little about the culture and etiquette in China. Use these business etiquette tips as a guideline only. There are too many social, personal and business nuances in China to be considered. There is no uniform approach possible for all occasions.
For more in-depth information I suggest you buy and read the "Global Business Etiquettes" book.

• Communication:
  Use an intermediary to get introduced.
  Take your time and be very patient. It can take a very long time to build a relation.
  Use formal names and academic titles. Rank is very important and should be respected at all time.
  Chinese are not direct, they prefer subtlety to directness. They will not tell you what they think.
  Dress formal and conservative. Womens should wear flat shoes.
  


• Meetings and negotiations:
  Be very punctual, if you suspect you will late, call and explain the situation.
  A translator/intermediary is essential.
  Remain standing until invited to sit down.
  Agenda’s are strictly followed but a meeting can take much longer then planned because decisions take a long time.
  Keep your presentation as short as possible, to the point, accurate and precise, do not exaggerate and use only black and white colors!
  Written material should be available in both Chinese and English, using simplified Chinese characters. Make certain that translations are accurate and cannot be misinterpreted.
  Follow up a meeting with a letter with all agreements outlined.
  
• Table manners:
  If unsure on how to behave, mimic the behavior of others.
  Bring a gift for your host.
  Wait until you are appointed a seat.
  Do not talk business.
  Avoid alcohol if possible, otherwise drink little.
  Learn to use chopsticks.
  Try everything that is offered.
  Keep your hands above the table when eating.
  Making slurping sounds is allowed of even appreciated.
  Thank your host at the end of the meal.
  

Some phrases in Chinese (Mandarin)

Chinese or the Sinitic language(s) is a language family consisting of languages mutually intelligible to varying degrees. About one-fifth of the world’s population, or over one billion people, speak some form of Chinese as their native language. The identification of the varieties of Chinese as "dialects" instead of "languages" is considered inappropriate by some linguists and Sinologists.

The standardized form of spoken Chinese is Standard Mandarin, based on the Beijing dialect, which is part of a larger group of North-Eastern and South-Western dialects, often taken as a separate language.

The number of people in China that speaks English is very low. When you have a business meeting in China it is wise to arrange for an interpreter when you are not sure everyone speaks sufficient english.

Hello	您好 (nín hǎo) / 喂(wéi) (on phone)
How are you?	你好嗎? [你好吗] (nǐ hǎo ma)
I’m fine, thanks. And you?	我很好，你呢？ (wǒ hěn hǎo, nǐ ne)
My name is ...	我姓 ... (wǒ xìng ...)
Pleased to meet you	很高興認識你 [ 很高兴认识你] (hěn gāoxìng rènshi nǐ)
Good morning	早安 (zǎoān)
Good afternoon	午安 (wǔān)
Good evening	晚安 (wǎnān)
Good night	晚安 (wǎnān)
Goodbye	再見 [再见] (zàijiàn)
Bon appetit	請慢用 [请慢用] (qǐng màn yòng)
Cheers/Good health!	乾杯! [干杯!] (gān bēi)
I don’t understand	我聽不懂 [我听不懂] (wǒ tīngbùdǒng)
Please write it down	麻煩你寫一下,好不好？ [麻烦你写一下，好不好？](Máfan nǐ xiě yīxià, hǎo bù hǎo?)
How do you say ... in Mandarin?	... 中文怎麼說？ (... zhōngwén zěnme shuō)
Excuse me	請問 [请问] qǐngwén - to attract attention
How much is this?	這個多少錢? [这个多少钱?] (Zhège duōshǎo qián?)
Thank you	謝謝 [谢谢] (xièxie)
You’re welcome	感謝你 [感谢你] (gǎnxiè nǐ)
Where’s the toilet?	洗手間哪裡？ [洗手间在哪里？] xǐshǒujiān zài nǎli?
Yes / No	是(shì) / 否(fǒu)

Visa for China

The best time to apply for your Chinese visa is 1-2 months before your travel date. The validity of a Chinese visa can be anywhere from 3-24 months depending on the type of visa you request. Normally a single entry visa is valid for 3 months, a double entry visa for 6 months, a multiple entry visa for 6, 12 or 24 months. You have to enter China before the expiration date of the visa. From that moment you can stay for 30 (or more days, as specified on your visa).

When you travel between Hong Kong and the mainland multiple times you do need a multiple entry visa for that purpose. Each time you enter China from Hong Kong or Macao, you need one entry. Citizens of most countries in North America and Europe can visit Hong Kong and Macao without a visa. You can check if you have to apply for a visa on http://www.immd.gov.hk/ehtml/hkvisas_4.htm

Your passport must be valid for at least 6 months from date of application in order to get a visa. You can get a single or double entry visa if your passport expires in less than 12 months, but more than 6 months. You can only get a 12-month multiple entry visa if your passport is valid for at least 12 months.

When you are offered a job in China and want your spouse and children to accompany you they can get work visas as well. Their names need to appear on the supporting documents you receive from the Chinese employer. Or you can provide a copy of marriage license and the children’s birth certificates.