China

74
Country starter pack
Conducting business in China
• Trademark Office of the SAIC is responsible for
trademark registration and administration nationally.
The local Administrations for Industry and Commerce
(AICs) supervise the use of trademarks and deal with
trademark infringements. In most cases, the party to
file first will secure rights to that mark in China, so file
as early as possible. For instance, a Shanghai snack
maker owns the name and logo of the computer
game, Angry Birds, while the trademark for Facebook
is registered for a variety of products. The Trademark
Office maintains a free, searchable database online.
4.3 NEGOTIATIONS AND
MEETINGS
When it comes to conducting business meetings and
negotiations, the Chinese have a completely different
mentality and approach to Australians. This needs to be
well understood by businesses that want to succeed in
China. A business that can negotiate well by understanding
the ‘Chinese style’ will have a very strong competitive
advantage. So before entering negotiations or making any
arrangements, you should develop an understanding of the
ways and protocols of meetings in China.
Managing Chinese business meetings
Setting up a business meeting: The first thing to do when
arranging a meeting in China is to check the Chinese
calendar and avoid national holiday periods when the
whole country can shut down for longer than the actual
holiday (particularly during Chinese New Year and around
May 1 and October 1). Be prepared well in advance of
your meetings; this includes having a detailed proposition
containing the value of your company and product
to provide to your Chinese counterpart, who will also
have one for you. It is important to send them as much
information as possible in advance. Providing details
about the topics to be discussed and your company
information in Mandarin ensures that the people you
want to meet will actually attend the meeting. Be aware
that Chinese businesses often meet with numerous
foreign firms seeking to establish relationships; you may
not get a second meeting if you are unable to capture
their attention at the first. Note that it is not uncommon
for the Chinese to only confirm a meeting and its time
and place at the last minute. This occurs because Chinese
business people tend to keep their diaries fluid and plan
only a few days in advance. Australian businesses will
particularly experience this as well as find it difficult to
secure meetings with senior company representatives or
government officials.
Before the meeting, make sure you know the language
capabilities of your hosts. It is generally advisable to have
your own interpreter (even if an official one is offered by
the host) as most business meetings are held in Mandarin.
Your own interpreter can be briefed in advance on the
objectives for the meeting and technical terms that may be
used. If you have specific requirements for a meeting room
set-up (e.g. projector and screen), be sure to tell your
hosts in advance so they can accommodate your needs.
Introductions: Never be late – punctuality is crucial.
If you are hosting the meeting, it is proper etiquette to
send a representative to meet the participants outside
the building or in the lobby and personally escort them
to the meeting room. The host should be waiting in the
room to greet all attendees. The most senior guest should
enter the meeting room first (this is a must for high level
government meetings but is occurring less in regular
business meetings). Assume that the first group member
to enter the room is the delegation leader. The senior
Chinese person welcomes everyone. The foreign leader
introduces his or her team, and each member distributes
business cards and vice versa.
Meetings often start and end with handshakes. Note
that the Chinese place importance not on the grip of
the handshake but the length. Ensure that you are not
too aggressive with your handshake. And if the meeting
went well, or if you want to emphasise the importance
of the person you’re meeting, don’t be shy in prolonging
the handshake. As seniority is highly valued in China, it
is important to address your counterparts by their titles
(chairman, director etc.). After establishing who the
most senior person in the room is, address them first.
When introducing yourself, say your name clearly, and
remember to state both the company you work for and
your position as these are important in China during the
introduction process.
Seating arrangements: There is a detailed protocol
associated with Chinese business meetings. Formal
meetings usually take two forms – either around a
conference table or participants sit in a semi-circle
in armchairs (less formal meetings). The armchairs
are arranged in a horseshoe shape. If the Chinese are
hosting, the Chinese host will take the seat at the lefthand
side at the centre of the horseshoe, while other
Chinese participants will be seated on the left hand side
of the semi-circle. The most senior Australian guest will
be escorted to the right-hand side of the centre of the
horseshoe with the remaining Australian guests seated
on the right hand side of them. Interpreters normally sit
behind the host and chief guest.