Understanding China’s business culture

 “If you are in a hurry, don’t go to China. I’ve seen many attempts at the hit and run and they fail.”

Stedman is in a good position to give advice. Dunedin-based NHNZ is the biggest foreign producer of documentaries in China but it has taken years to develop the relationships that underpin its success.

He describes getting to know SARFT, the body in charge of China’s radio, film and television industry. “I visited five or six times before they took any notice of me - they were waiting to see if I was serious. They have so many people coming through their doors that they never see again and they get sick of it.”

Stedman’s advice is to spend time understanding what you bring to the table when doing business in China.

“They have to trust and like you but you also need to give them a reason to work with you. With us, they wanted to understand the Western style of documentary making so we have run workshops for directors and crews in China and regularly host them in New Zealand.”

KeFeng Chu, NZTE’s Director Operations – China, agrees that having a long term China market strategy is crucial. “Many companies talk about it but few have one and it can’t be properly developed without visiting China regularly. You need to put down roots to succeed there so businesses in for the long term should be thinking about allocating resources to ultimately employ staff or set up an office.”

Connections are crucial

Tapping into networks is the key to longevity in China says Mr Chu.

“In New Zealand you have the old boys’ network, in China we have guanxi. We feel comfortable doing business with people we know. If you build good relationships in China you will eventually be connected to that person’s guanxi and they will also be looking for value from your network.”

Collective decision making is a feature of the Chinese environment says Mr Chu and that includes family.

“People rely on and trust family members. It’s important to understand that when you are introduced to brothers, sisters or cousins of the boss, you are meeting people who influence what happens.”

Government is also important - and powerful. Mr Chu says the presence of local government officials carries a lot of significance in China.

“You need good connections to government so you can secure their endorsement when it’s needed. Local government has a lot of mana in China. When you bring your Chinese business partners to visit you in New Zealand they will expect local government officials and even the Mayor to be present.”

Business etiquette

The traditional Confucian system of beliefs and ethics remains at the heart of business culture in China and Michael Stedman says knowing a bit about it will help you understand the complex etiquette.

He says gift giving in China is one of his biggest headaches.

“Gift giving is a social obligation but is governed by a lot of unwritten rules. I have been embarrassed by gifts I’ve seen some New Zealand companies give – things that are tatty and unwrapped.”