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Tips on Working with Chinese Companies

 

Document meetings and phone calls
 

Avoid ambiguity by documenting meetings and phone calls as soon as possible after they happen.

Dates
 

The Chinese use the date format yy/mm/dd and in the UK dd/mm/yy is used. Avoid ambiguity by using a full format such as Thursday 18th March 2004.

Use web phone tools
 

Use internet telephony services to reduce international phone call charges (e.g. www.skype.com).

Over specify
 

To avoid ambiguity specify the requirements in writing. Use International Standards and not company standards. Pay particular attention implicit requirements – for example, requirements that are required by local law or by local industry norms and practices. If local standards are used make sure the Chinese supplier has a copy.

Web Scams
 

Whilst most of the companies advertising on trade web sites are legitimate businesses some are not. You should verify that the company is real before committing money.

Incoterms
 

Use the standard Incoterms 2000 (and reference them in any contract) to avoid ambiguity. Definitions of Incoterms can be seen on the International Chamber of Commerce web site.

major Chinese Holidays in 2008

Chinese New Year – 7th February 2008 (Year of the Rat). Most companies are closed for two or more weeks for the Spring Holiday starting a couple of days before New Years Day. The date of the Chinese New Year changes each year.

Labor Day – 1st May. Most companies are closed for a week from the 1st May.

National Day – 1st October. Most companies are closed for a week from the 1st October.

There are numerous other national and local days, some of which are holidays.

Working Hours
 

Chinese companies work long hours and many Chinese businessmen are on stand-by 24x7. To avoid getting a phone call at 11.30pm at night set ground rules with your Chinese contacts or switch your mobile off.

Time Difference
 

China is eight hours ahead of the UK (GMT) in the winter and 7 hours during British Summer Time. The time difference should be used to your advantage – sending an email to China before you go home will give your Chinese supplier almost an entire day to work on it before you get in the following day.

I Understand
 

If a Chinese person says “I understand” it normally means “I haven’t got a clue what you are talking about”. Without them thinking that you think they don’t understand you should obviously explain what you are looking for in a different way.

Knowledge of English 

Many Chinese businessmen have at least some knowledge of English. They can often understand more than they can speak. Use simple words and sentences. Do not discuss sensitive information in front of someone you assume cannot speak English – they can probably understand every word you are saying.

Postal Addresses in China  

When posting (or couriering) a letter or parcel in China include the recipient's phone and fax numbers with the address. Also, include your own name, address and phone and fax numbers.

© 2006 DABA Services Ltd.