Taiwan Business Guide - Management and Business Studies Portal

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Business Issues and Considerations The Taiwanese market is a favourite among foreign direct investors. However, while the country’s thriving economy, liberalising marketplace and widespread use of English in business makes it an appealing choice for UK investors, there are some significant cultural differences and challenges to be aware of. Confucian values Taiwanese society operates according to Confucian values. These state that people should respect authority and the collective, behave virtuously, work and learn hard, avoid extremes and live moderately. Taiwan is a collectivist society. People treat others with respect regardless of their personal feelings and do not do anything to cause someone else personal embarrassment. You will find that, if you can demonstrate these qualities, you will be more successful in your business relationships. Face There is also the concept of “face” (mien-tzu), which is found across Asia. Taiwanese people strive for harmony in their business and personal relationships. To prevent loss of face, they will avoid confrontation or will tell others what they want to hear rather than tackling issues head on. For example, rather than say “no”, they might say “I’ll try.” This allows both the person making the request and the person turning it down to save face and maintain harmony in the relationship. Some Westerners can find this approach confusing. Try rephrasing the question in different ways so you can compare the answers you get. If you do cause someone to lose face, for example, by embarrassing them, you can restore their dignity by saying something like “Perhaps I didn’t explain myself clearly” or “I have done the same thing myself.” 42
Business Issues and Considerations Business etiquette Guanxi (‘connections’) As in mainland China, Taiwanese business relationships rely on guanxi (pronounced gwan shee), which essentially means social or business connections based on mutual interest or benefit. Guanxi opens doors and smooths the business process. It is therefore essential to spend time getting to know your business contacts and building a strong relationship with them through regular and ongoing contact. You will find being introduced to a company by a trusted third party, such as the British Embassy, more effective than going in cold – UKTI in Taiwan can help you here. If you make a mistake in business, always own up to it and demonstrate what you are doing to put it right. Meetings Meetings in Taiwan are generally loosely structured and may not stick to the planned agenda. They are as much about building relationships as they are about discussing business, so be prepared to spend time on non-business topics. Meetings may extend well beyond the agreed time as Taiwanese business people regard concluding the meeting satisfactorily as more important than sticking to a particular timescale. It is worth remembering this if you are scheduling several meetings in one day. Your approach should be formal but friendly, although avoid making jokes as this could be interpreted as a lack of respect for your host. The hierarchical structure of Taiwanese companies means it is important to show respect for authority. Ideally, the most senior person in the team should enter the room first and greet the most senior Taiwanese representative. Always greet older or more senior people first. Make sure that you show due respect and use people’s titles correctly. Address people by their title and surname, unless you are invited to use their first name. If a person does not have a corporate or government title, use the honorific Mr, Miss or Madame, followed by their surname. Leaders should sit opposite one another around the table. Handshakes A handshake is the most common form of greeting when doing business in Taiwan. Handshakes are softer than in some other countries and your Taiwanese host may lower his eyes as a sign of respect. Men should wait for women to extend their hand first. Never use your index finger to point at somebody. Body language You should offer and receive documents with your right hand, and food with both hands. Avoid showing the soles of your feet or pointing your foot at your host when crossing your legs as this is considered rude. 43
Page 1 and 2: HELPING YOUR BUSINESS GROW INTERNAT
Page 3: CONTENTS INTRODUCTION Why Taiwan? 4
Page 6 and 7: INTRODUCTION WHY Taiwan? (CONTINUED
Page 12: INTRODUCTION WHY Taiwan? (CONTINUED
Page 15 and 16: Market strengths These are the esse
Page 17 and 18: RESEARCHING THE MARKET WHERE TO BEG
Page 19 and 20: Events and seminars UKTI organises
Page 21 and 22: Export Communications Review (ECR)
Page 23 and 24: Taichung is situated in west-centra
Page 25 and 26: Taiwanese taxes and must file tax r
Page 28 and 29: Market Entry Establishing A Presenc
Page 30: Market Entry Establishing A Presenc
Page 33 and 34: Getting Started Due Diligence Many
Page 35 and 36: • Recruitment companies such as A
Page 38 and 39: Getting Started marketing To reflec
Page 40 and 41: Getting Started INTERPRETERS While
Page 44 and 45: Business Issues and Considerations
Page 51 and 52: Labelling and packaging regulations
Page 59 and 60: Buses Taipei has an extensive bus n
Page 61 and 62: Taiwanese Culture Politics China ha
Page 63 and 64: Taiwanese Culture Religion Taiwanes
Page 65 and 66: Customs & regulations HM Revenue &
Page 68 and 69: HELPING YOUR BUSINESS GROW INTERNAT

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