China's economic growth is 2 digits every year, many people try to do business with Chinese people. While many hit nails, some are very successful.

The Chinese business culture is very different than the West of which business contract is no more than a piece of paper.

In China, business is an extension of the family therefore business is all about relationship. If people give you "face", you will automatically get business.

And what's "face" and how to build it?

"Face" is a complex idea unknown to the western culture. What's "face"? I will try my best to translate the meaning into english.

"Face" is a combination of kinship and reputation. In Chinese culture, those that are senior are to be respected. Also those that know a lot of influential people are to be respected as well. Also "face" has financial value and can be traded.

For example Albert is giving Tom "face" in transaction A to Tom's favor. Such favor is to be returned when Albert needs something from Tom. If Albert refuse or incapable to return the favor, Albert will lose "face".

In Chinese culture, doing business isn't about supply and demand and it's all about "face".

It's very different than western culture of which business is based on supply and demand, and relationships are bounded by law and contracts. In Western cutlure business is no more than one of the mean to the end. In Western culture, business is all about making money so that people can buy what they want using the money they earn. Business is a way of life.

And when these two culture cross over, a lot of strange and funny things will happen.

And which business culture is better, you tell me?

Replying to [santahw050]:

you are a fault chinese.

Replying to [santahw050]:

If I offended you I am sorry but I think your thinking is too ancient, giving face in normal circumstances is the business practice of our grandfather.
If a supplier quoted 20-30% higher out of giving face will you buy from them? Nowadays it is all about competitiveness and survival. If you give face you are going to lose out, people only give face if there are hidden agenda behind or there are hidden benefits behind.

If you are a buyer from Microsoft, Dell or Walmart most probably seller will accept your Purchase Order without demanding L/C or T/T, they will even offer to give you credit terms, that is not call give face, that is called trust.

Replying to [santahw050]:
I like the concept of 'face'.... i would rather pay a little more to deal with pleasant polite businessman/woman who takes the time to ask "how are you" than a strictly business and is so rushed trying to make money they dont have time to be pleasant.

Replying to [santahw050]

Tis like night and day that thin line between; determents the destiny.
Whom can reach the horizon will success;
in creating a sunset of bliss; the rest in life is greed.
As it is said you arrive with nothing and shall depart the same.
Here the custom is to save face

http://www.manallc.com
info@manallc.com

Replying to [santahw050]:
Losing Face means embarrassment.And one more thing to be added:Rebate.If you give the purchaser manager some rebate,he/she will probably make deals with you.Corruption is still serious in China now.

Replying to [David Frencken]:Dear Sir,you did a excellent presentation,i do agree with you.

Replying to [santahw050]:I like western business culture.