Legal Tips:

• The legal issues of contracting with a Chinese supplier can be very different than those in the U.S. or Europe. Here’s a few general tips:
• Do not rely on the legal advice from your Chinese partner. Have your own legal counsel. You wouldn’t rely on a suppliers’ legal team domestically, do don’t do it there.
• China is cracking down on its notorious corruption in business, in an effort to bring more business to the country. Beware of claims that the Chinese law requires specific covenants in your contract. You must be ready to obey all Chinese laws and regulations, even if you initially can successfully avoid them. Seriously question any agreement where you are told you can ignore or avoid the law.
• And of course, it’s to a buyer’s benefit to know all pertinent American laws such as the U.S. Foreign Corrupt Practices Act.
• As a foreigner, you may be asked to exchange Chinese money for dollars. Don't do it; it is illegal.

Source: U.S. Commercial Service division of the Commerce Department.
http://www.buyusa.gov/china/en/doingbizinchina.html

Tips on business etiquette in China:

Personal relationships (“guanxi” in Chinese) in business are critical. “Guanxi” is deeply rooted in Chinese culture and is basically "a tool to get business" and "a way of getting things done." It often takes months, perhaps even a year or more, to establish “guanxi”.

Meeting people: Upon the initial greeting of meeting someone for the first time, short handshakes are usual on first meeting followed by the Chinese greeting of "ni hao?” which translates to “How are you?"

Rather than try to remember the full, two-or-three syllable Chinese name, listen for the first one (the family name).

Meals: At a formal meal or banquet, you will be expected to at least sample every dish. You are not obliged to eat all of the meal given. However, if you finish a dish, chances are you will be given a refill.

At meals and receptions, the host will give a toast. Often a choice of drinks, both alcoholic and non-alcoholic, will be offered. Beware the Chinese toast "gan bei", which, roughly, means "bottoms up", especially if you are drinking "mao tais" (a traditional Chinese drink).

Tipping is officially forbidden, and most hotels and restaurants impose a service charge in lieu of tips. However, the practice of tipping (in private) has become more widespread in recent years because of the influx of Westerners.

Source: U.S. Commercial Service
http://www.buyusa.gov/china/en/visitorsguide.html

Social tips to establishing contact with business professionals in China:

• Avoid making expansive gestures and using unusual facial expressions.
• The Chinese do not use their hands when speaking, and will only become annoyed with a speaker who does. Some hand gestures, however, are necessary. For example, to summon attention, turn your palm down, waving your fingers toward yourself and use your whole hand rather than your index finger to point.
• Attire: In Chinese business culture, conservative suits and ties in subdued colors are the norm. Bright colors of any kind are considered inappropriate.
• Women should wear conservative suits or dresses; a blouse or other kind of top should have a high neckline. Stick with subdued, neutral, colors such as beige and brown.

Payments:

• Have clear contract and payment terms when contracting with Chinese suppliers. Nothing should be left to interpretation. Payment terms for most large projects 70% advance payment, 30% letter of credit are common. Offering payment after delivery tells your partner that you do not know how business is done in China and makes you look easy to deceive.

• NEVER agree to unsecured payments after delivery.

Source: U.S. Commercial Service division of the Commerce Department. http://www.buyusa.gov/china/en/doingbizinchina.html

Visas:

View guidance provided by the Chinese government here on its visa application process .

Language tips:

On January 1, 1979, the Chinese Government officially adopted the pinyin system for spelling Chinese names and places in Roman letters. A system of Romanization invented by the Chinese, pinyin has long been widely used in China on street and commercial signs as well as in elementary Chinese textbooks as an aid in learning Chinese characters. Variations of pinyin are also used as the written forms of several minority languages.

For a more detailed explanation of the language, visit this site:
http://www.buyusa.gov/china/en/visitorsguide.html

In Chinese culture, the question “Have you eaten?” or “Where have you been?” is the equivalent to “How are you?” in North America; it's just a superficial inquiry that does not require a literal-minded, detailed answer.

Make an effort to learn and use at least a few words in Chinese; your initiative will be noticed and appreciated. Make sure you know the meaning and appropriate occasions for what you say.

The U.S. Commerce Department provides a trade statistics database that may be searched by industry sector or country of destination. The China State Statistical Bureau is the authoritative source of trade statistics collected by the Chinese Government. Go to the

Chinese language website .

Source: http://www.export.gov/china/exporting_to_china/faq.asp#bsp)

• The Chinese tend to extend negotiations well beyond the official deadline to gain advantage. On the final day of your visit, they even may try to renegotiate everything.
• Be patient, show little emotion, and calmly accept that delays will occur. Moreover, do not mention deadlines.

• Lavish gift giving was an important part of Chinese culture in the past. Today, official policy in Chinese business culture forbids giving gifts; this gesture is considered bribery, an illegal act in this country. Consequently, your gift may be declined.
• In many organizations, however, attitudes surrounding gifts are beginning to relax. In any case, you will have to approach giving gifts with discretion, as outlined in the following points.
• If you wish to give a gift to an individual, you must do it privately, in the context of friendship, not business.
• The Chinese will decline a gift three times before finally accepting, so as not to appear greedy. You will have to continue to insist. Once the gift is accepted, express gratitude. You will be expected to go through the same routine if you are offered a gift.
• If possible, have your gifts wrapped in red paper, which is considered a lucky color. Plain red paper is one of the few “safe” choices since a variety of meanings, many of which are negative, are attributed to colors in Chinese culture.
• Pink and gold and silver are also acceptable colors for gift wrap. Wrapping in yellow paper with black writing is a gift given only to the dead. Also, do check the variations from region to region about colors.