3 Convention

   3.1 The Concept of “Face”

The Chinese concept of face is one of the most important to understand because of its major impact on Chinese interpersonal interactions. It is similar to the western concept of pride yet different. “Face” is public and related to acknowledgment of an accomplishment or positive attribute. If a Chinese person has someone publicly acknowledge them, they will “gain face”. The giving of face is an important part of Chinese relations. Contrarily, causing someone to “lose face” can be a relationship killer.
Examples of giving face would be telling someone in public that “your factory management system is world class”, or “you look very fit”. The Chinese party will likely respond with an “oh, it’s not really that good” or “I still need to improve”, but they will revel in the “face” you have given them. Give sincere compliments or acknowledgment when due and you’ll score points with the Chinese. Not only will you raise their public stature but you will strengthen your relationship with them in the process.
Causing a loss of face is taboo and should be avoided. Do not publicly criticize a Chinese person if at all possible. Doing so will cause a loss of face on their part and your own from which it will be difficult to recover. Also, avoid embarrassing behavior, excessive joking and ridicule. Rather act with more dignity than you might otherwise at home.

   3.2 Greetings

Address a person using his or her family name only, such as Mr. Chen or Ms. Hsu. The Chinese family name comes first and is usually one syllable. A one or a two-syllable given name follows a family name. For example, in the case of Li xiaoshan, Li is the family name and Xiaoshan is the given name. For business purposes, it is traditionally acceptable to call a Chinese person by the surname, together with a title, such as "Director Wang" or "Chairman Li." Avoid using someone's given name unless you have known him or her for a long period of time. Formality is a sign of respect, and it is advisable to clarify how you will address someone very early in a relationship, generally during your first meeting.The Chinese way of greeting is a nod or slight bow. However, when interacting with Westerners, Chinese usually shake hands. Bear in mind that a soft handshake and a lack of eye contact do not necessarily indicate timidity. It only implies that the person is not accustomed to the firm handshakes commonly used in the West.

   3.3 Business Meetings

In China, it is assumed that the first person that enters the room is the head of the group. The westerner should observe this convention so as not to confuse the Chinese. Important guests are usually escorted to their seats. If the meeting room has a large central table, the principal guest is likely to be seated directly opposite the principal host.

When exchanging business cards, hold out your card using both hands with the writing facing the recipient. Cards should always be exchanged individually (one-on-one). Never toss or "deal" your business card across the table, as this is considered extremely rude. Receive a business card with both hands and scan it immediately for vital information. Then lay the card in front of you on the table. It is demeaning to put someone's card directly into your pocket without looking at it first.

Meetings begin with small talk. Resist the temptation to get down to business right away. Also, avoid telling American-style jokes, because jokes sometimes do not translate across cultures and can cause confusion or hurt feelings.

   3.4 Chinese Banquets

On business, it is inevitable that you will partake in a Chinese business dinners or “banquet”. A Chinese banquet is a good time to get to know the parties, remember to keep things light and use the time to relationship building (guanxi) and secure trust
As for the meal itself, expect a few cold dishes first, followed by several hot dishes having a variety of tastes. Some dishes may strike you as very strange and unappetizing. For example, things like snake, sea snails and duck intestines could be served; for the open minded, they are actually quite good. The meal usually ends with some type of fruit plate on which watermelon is common.
In China, it is traditional to eat from the same dishes. Finally, don’t be surprised by burping, slurping or even the expecting of debris (bones, shells) from the mouth onto the table. These practices are still common in China and acceptable.

   3.5 Giving and Receiving Gifts

Inevitably, someone will give you a gift while you are on business in China. It is likely to be something Chinese and having cultural value, or it might be a company’s promotional item. Never give a clock, handkerchief, umbrella or white flowers, specifically chrysanthemums, as a gift, as all of these signify tears and/or death. Never give sharp objects such as knives or scissors as they would signify the cutting of a relationship. Lucky numbers are 6 and 8 (especially in a series, such as 66 or 888). An unlucky number is 4. Use the traditional lucky colors of red or gold to wrap your gifts. Avoid using white or black, since they are considered colors of mourning. If giving gifts within a group, try to give proportionally nicer gifts to people of higher rank.

   3.6 Tipping

This is pretty straightforward: you don't have to tip in China. It is even unheard of in some places. At major, foreign-run, hotels, you'll have to tip staff (bellboys, porters and maids) what you usually would anywhere else. If you have a tour guide, it might be a good idea to tip the guide and driver at your discretion. Other than in these situations, any offer of a gratuity would be met with a polite refusal or even extreme embarrassment.