When people hear I spent some time living in China, they often ask what it takes for a foreigner to succeed there (as if there might be a secret). I never know how to answer this — so I interviewed some friends in China to see how they might respond.
My interviewees included Sally, a small business owner in Beijing. Martin, a highly educated translator. Peter, a university lecturer in a third-tier Chinese city. Steven, who works in the Chinese finance industry. And Ed, a language school owner in China (the only non-Chinese interviewee).
What kinds of personalities succeed in China?
Martin: Personality is not so important these days. As long as you are the son or daughter of a high-ranking official or 2G Rich (Second Generation Rich) then you will most probably succeed. For those who are neither, you’ll need to be good at bootlicking or grovelling – this way you’re sure to gain some advantages over competitors.
Chinese people used to be slaves to power, now they have become slaves to money as well. In modern China, knowledge and talent are second to money and power, so Chinese people are taught from a young age how to please the boss, top leaders, superiors, or those in the authorities. If you can do that you are very likely to achieve what you want even if you’re incompetent. There is a widespread saying in China, “Want to be successful? Then be a kiss-ass first!” There are many Chinese books which instruct people in ‘how to kiss-ass their way’ to the top.
Peter: To succeed in China you need to be sophisticated, artful and slick. People with these traits normally have better interpersonal relationships and easily get help from the all-important social circles.
Steven: You must be hard working, considerate, warm-hearted, and honest. For me, a successful Chinese person should have a business/career and a harmonious family. To be hard working is a traditional Chinese virtue, and I think it is the main contributor to a successful career here.
Ed: You need to be flexible; patient but not placid; strong enough to be weak; humble but never crumble. In China you are constantly being tested to see where the break point is. Discovering a weak spot that will bring you ‘leverage’ is the game. The best personality is someone who is able to play this game well.
Egotistical types are easy prey for the Chinese. The Americans have always occupied this role more than any other country. The early foreign pilgrims to China were easily fleeced and sent packing with little to show for their efforts. If you want to do well here then check your ego and perceptions at the door. Be willing to change any agreements at the very last second — as long as you are able to negotiate better terms elsewhere.
Preparation is the key. Do the due diligence required on the region, the city, the township even, that you are planning to do business in and make sure you are stocked up for the long run. So many have come to China believing they will be feted by all, waited on hand and foot, and their every utterance will be received as a pearl of wisdom. Such fools.
The opportunist will come to China with an eye on everything. He will know his history of the region and not just the country. China has suffered such horrors at the hands of most foreign states over the centuries (the Opium Wars and the Boxer Rebellion are two good examples of the savagery inflicted upon them by so called ‘civilizations’). This has never been forgotten. The arrogance of the UK, USA, France, etc set the tone for all future relationships. China only paid the last instalment of the Boxer Indemnity in 1939. There are plenty who will never forget, so anyone doing business in China should factor in the historical hangover. The history is used to embarrass foreigners — guilt is wonderful leverage.
Do you know any foreigners who have been successful in Chinese business?
Peter: I don’t know many successful foreigners in China. Of course the large trans-national corporations have their supervisors or staff working in China, but it’s not what I’m concerned with, so I don’t know many of them. But there is someone who came to China many years ago and gained fame. His name is Dashan. I have watched his TV talk show many times and he really impressed me. I think the key to his success is that he mastered the way Chinese people talk and how they deal with matters.
Ed: I don’t know too many. There are small business owners: the bar, the coffee shop or restaurant. They usually aim at the foreign market, mistakenly, of course, as foreigners in China are not big spenders! The demographic has to be locals.
I have met and talked with one very successful man: Jim McColl OBE, of Clyde Blowers. He has been very successful at doing business in China. He has made it big. Very big. He succeeded because he didn’t try to make the Chinese fit his template. He went there and saw what they wanted, what they needed, and then adapted his business model to accommodate it. At the very start he did try doing business the European way, but he got caught out early on. He had sold an appliance to a Chinese company and a few months later saw they were offering a similar product to his own! They had reversed engineered it to create a lower quality replica and sold it at lower prices. He didn’t get mad; he just got smart. He willingly gave them access to his business and tech. He forged partnerships with them and built a hugely successful business. Why? Because they saw him as a useful partner —an asset and not a competitor.
Do you know any foreigners who have been unsuccessful in Chinese business?
Peter: Yes, one foreigner opened a pizza restaurant. My friends told me he was arrogant and came from a rich family. He let his Chinese business partner take charge of the business. Someone who worked in his restaurant told me that everyone knew his Chinese business partner was cheating him. Eventually the pizza place closed and he disappeared.
Martin: I have a friend from Vancouver. He was not successful in China. At least, I don’t think he was happy when he stayed here. He taught small children (about 7 years old) and college students. He was a very committed teacher, and very responsible. His classes were well prepared and interesting, but unfortunately, he was too honest and frank. He often pointed out the mistakes his Chinese workmates made with pronunciation or grammar — he didn’t realize it would offend them. Chinese people are very sensitive to criticism or advice; they feel they have lost-face when they are told they have done something wrong.
Ed: Yes, I know some foreigners who have been unsuccessful. They were very shortsighted and ignorant. They refused to learn about the culture they had chosen to live in! Such madness. Also they didn’t do any research to see if there was a demand for their product or service. They were successful back home and thought they could do it here as well. No due diligence. Ignorance and arrogance are the biggest reason for failure here: the terrible twins.
What are the key features of Chinese culture?
Peter: Modesty. And there is always an exception to every rule.
Martin: There are 56 nationalities in China. Different nationalities have their own distinctive cultures and customs, so it’s quite hard for me to summarize the key features of Chinese culture. But generally speaking, Chinese people value peace, stability and harmony.
What’s more, most Chinese would like to take ‘the golden mean’ as the basic standard by which to judge or guide their behaviours.
In the current climate, most Chinese people also adhere to the philosophy of “Not getting involved in things on the ground that are no concern of theirs in order to KEEP SAFE”.
Steven: Chinese culture regards family as the most important thing. Christmas in China is not so important, but Chinese spring festival and Middle Autumn festival are for family reunions. We respect older people and teachers — their advice should be highly regarded.
Ed: First, respect: everyone wants to be respected. It’s a basic human need but here it is of prime importance.
Second, status: be seen to do well. To be rich is to be glorious… so Deng said, sort of, but when you come from a culture that is 5000+ years old, was the dominant force for centuries and was then placed at the back of the line and treated with disdain there has to be a ‘cultural consequence’. Never to be repeated. That’s the mantra. They will never be treated like that again. Never lose their place at the table. In fact they will strive to take back the top seat. You see it now with Xi. He is very much a historical leader: he is driven by the past and carries those lessons to the future with every decision he makes.
Third, modesty: Ever so humble… Dickens’ Uriah Heep was a master at the art of insincerity and fake humility. In many ways this is part of the culture here. You must never take a compliment, rather bat it away by giving one in return. The modest man is a man to trust. He will be fair. He will be honest. All nonsense of course, but that is the image to project. You are handsome, I am ugly. You are smart, I am stupid. Feed the foreigner’s ego and distract him from what’s actually happening. These are broad strokes but it is a part of the ‘game’. You have to be smart to succeed here. I admire the system because it is fair. I just have to be good enough to play.
Fourth, family: nothing is more engrained than ‘family’. It brings with it a burden, but it is part of what makes China Chinese. Respect the family and you will be given respect.
What do foreigners typically misunderstand about Chinese culture?
Martin: When a westerner receives a compliment he might say something like “Thank you. It’s so kind of you to say so.” But in China, self-abasement is recognized as a merit or virtue. So when a person receives praise or compliments he most probably will respond, “Oh, you must be joking. I’m not as good as you say.” Or “Oh, I don’t deserve this honour. I’m much worse than you think.” When foreigners hear this, they sometimes take it too seriously. But it’s just a way for Chinese people to demonstrate modesty. As a matter of fact, Chinese people are overjoyed to hear nice remarks — but they will never show it. They like to leave others with the impression that they are modest and humble. But remember this during conversations with Chinese people: we LOVE sweet words. Sweet words work!
Peter: Foreigners make the mistake of taking what Chinese people say too literally. For example, ‘impossible’ doesn’t really mean impossible.
Steven: People believe the Chinese are ill-mannered. This may be true by western standards, but our behaviour is normal by Chinese standards. Most people in China are actually very tolerant.
Ed: Foreigners get the idea that money is everything to Chinese people. It isn’t. It is about the deal, the winning, but on their terms. We ‘raped’ this country for years, so the last thing the Chinese will allow to happen is to be beaten again…in anything!
When doing business in China, knowing the right concessions to appease your partner is crucial. What may appear insignificant to us could be of huge importance to them, so give it up… but make a show of it. Put on a performance of ‘losing’ and you will be very successful in many ways.
Attention to detail is not so important here: it’s more important to get the contract signed and then work out how to do it later. In the west we waste too much time going over the minutiae of contracts rather than getting started and working it out on the job.
When doing business in China, a contract is just an indicator of some form of agreement… they are not to be seen as set in stone. Your word and actions are what matter most.
What are Chinese people like?
Martin: Firstly, Chinese people are kind and hospitable. Most Chinese people will want to help you (as long as it’s not too much trouble). Sometimes I think they are friendlier to foreigners than they are to their Chinese neighbours.
Secondly, Chinese people prefer a stable life. They hate change, let alone adventure. They are content with things as they are — and won’t take much trouble to improve them.
Thirdly, Chinese people are very precise when dealing with small matters, but they seem very shortsighted and possess no vision for big deals!
Finally, Chinese people have some bad habits that foreigners can’t bear. The most obvious example is that most Chinese people don’t have much respect for the time and privacy of others — being punctual is hard for most Chinese people.
Peter: Chinese people like to evade the question by changing the subject; they dislike giving a direct or clear answer to an issue. For example instead of saying ‘it’s forbidden’, a government officer might reply: “We need to discuss this further” or, “It may be difficult for me to approve your request.” It is not only government officers who talk this way; people do it in their social life too.
The Chinese regard favours as important — and they don’t like to owe someone one — so most people will return a favour before it is asked of them. It seems nice that everyone repays kindness — but people will reject any new request if you still owe them a favour from before.
Ed: Chinese people are incredibly friendly and love a laugh. But they are filled with distrust of outsiders due to their history and propaganda. Once you make a friend they will be friends for life — it is a bond that will never break. Just don’t phone them up and ask for cash! That’s not happening!
Chinese people are hardworking to a point. Everyone does the minimum, but at least they do it. If you want to find a shortcut then ask a Chinese person — they will have worked it out. In the UK, you ask the laziest person to find out the quickest way!
Food is their religion. It is the topic at every table and everyone has an opinion. If it can be eaten then it has a medicinal purpose as well. Food brings life.
Chinese people have a curious innocence about the world, coupled with a fierce economic drive to succeed. There is very little malice in what they do. It’s just a lack of knowledge. And if we shame them for the unintended consequences of their innocent actions then it will only produce resentment.
How do Chinese people feel about foreigners?
Martin: Two thirds of the population are farmers and live in the countryside. So it is safe for me to say that most Chinese people don’t know much about foreigners. They rarely talk with foreigners or make contact with them in person. They just get some crude information about foreigners from history books, movies or other media (generally strictly censored). They don’t know or care whether the content is true or not!
So most Chinese people are told that foreigners (especially from western countries) came to this country with guns and battleships more than a hundred years ago and did all kinds of evil things to them. With this kind of education, Chinese people (especially those who are not used to thinking independently) are ready to believe that most foreigners are BAD. So whenever they deal with foreigners they are very likely to be on guard.
China is currently carrying out the “reform and open-door policy”, so foreigners are no longer quite as rare a sight. When Chinese people (especially those living in small cities) see foreigners, they feel happy and even proud because it means their cities or hometowns are not so bad. In their minds, foreigners are all millionaires. So the sight of foreigners also means a cash cow (at least most Chinese think so).
Peter: Chinese people believe all foreigners are rich. They also think foreigners come from advanced places and that China is a kind of rural area for them.
Steven: We know little about foreigners because they are still rare in China. Some people are very curious about the foreigners living in China, while some people are indifferent to it. Foreigners usually receive privileges and are well treated in China.
Sally: A lot of Chinese people believe foreigners are more polite and educated. They think these visitors come to China to explore a new world and to find opportunity
Ed: Chinese people are curious about foreigners; and still slightly deferential without good reason any more! Good people are welcomed by all. Foreigners are just ‘people’ that look and eat differently. If you contribute to society then you are welcomed. If you show respect and are willing to adapt to the culture then nobody will mind your presence.
It is very important to read about the country. It is a very complex place with regions that often have no common ground with each other, so it is easy to make mistakes and incur the wrath of locals. The Chinese are happy to see more and more people come to China as long as they behave appropriately; bring better education, medical care, investment, and anything else to help the economy.
Is there anything foreigners do which make them seem rude?
Martin: Most foreigners, especially those from developed countries, are well- educated. They are interested in this ancient country, want to know more about it, and know how to respect Chinese culture and customs. In my experience, most foreigners are responsible and get on very well with their Chinese colleagues.
Peter: Sometimes foreigners can be very arrogant and picky.
Steven: We don’t like foreigners who complain about everything and pass judgement on political issues (especially Taiwan and issues surrounding minority ethnic groups), or foreigners who criticise our government.
Ed: As someone who still fails at speaking mandarin I would say that not learning a few words is a lack of respect to some. Being ‘rude’ is usually associated with not knowing local customs — such as in Thailand where touching people on the head is frowned upon. In China, rudeness is gauged by your behaviour in public, your personal appearance, showing respect to elders, and not judging others by foreign standards.
What must a foreigner do at a Chinese business meeting?
Martin: Chinese people don’t prescribe to the idea that business-is-business. They like some emotional elements to be involved. If a foreigner can establish some kind of personal relationship with business associates that will surely help. Remember Chinese people like sweet words. So don’t hold back when sitting at a business meeting (“your company is so well run,” “you are an expert at management”, etc.).
Steven: Bringing a gift for your business partner is a good start. Chinese wine is very popular among businessmen (especially in the north, central and west of China). Doing business in China always becomes easier after some wine!
Flattery is necessary and you should never cause anyone to lose face. Relationships (關係) are the main ingredient if you want to be successful. You need to maintain good relationships with your business partners and officials.
Ed: If you read all the books out there it would appear there are a multitude of customs to adhere to. My experience is not that. Of course there are seating rules and who pays for meals etc is important, but really you should have someone with you to navigate all of that. The ‘rules’ are often used as leverage in meetings by the Chinese. They know we are crippled by public faux pas and use this to create an advantage. Foreigners should be aware of that and as long as you are well mannered and prepared to have a drink or two then it will be fine. Always give respect to those in positions of power. Showing respect in front of their subordinates is very important as it means you are giving face.
Do foreigners do anything that is considered inappropriate when doing business in China?
Martin: It’s ok for foreigners to show their confidence in business discussions — but never leave Chinese people with the impression that you are arrogant or overbearing. Even if you don’t agree with an idea, you had better not say so instantly. You should pretend to be interested and let it cool off first. If you step back one inch, you can move two feet forward.
Steven: The Chinese don’t like people who are arrogant or dishonest.
Peter: Smoking and being good at drinking is a GREAT help when doing business in China. The Chinese love to talk business during formal dinners, and drinking is an indispensable part of this.
Ed: Never talk about business from the start. Initial meetings are about sussing each other out: pushing the boundaries to see how we react. Do you get drunk and behave badly? How you handle your drink is an important factor at certain levels, but the higher you go the less this plays a part. The matter of ‘face’ is a real thing: we must show respect to those in power regardless of their manner or attitude.
What one piece of advice would you offer to a foreigner coming to China?
Steven: You should totally immerse yourself in Chinese culture and act like a Chinese person.
Martin: Talk less and listen more. Also, do as Chinese people do.
Sally: Get to know China before you come. Know a little bit of the Chinese language and Chinese culture. It will help you here.
Ed: One piece?… China is not that easy! So it would probably be this: go and live there for a while. You can’t ‘know’ the country through anecdotal advice or from China ‘experts’!
Research thoroughly. Do your due diligence. Know your market and understand the vast difference from city to city. If you don’t have the market in waiting then don’t go. Take the time to build the demand from where you are before you venture out here.
Invest heavily in a top advisor to assist you. This is vital. And remember, there are no China Experts. They don’t exist. Anyone purporting to be one should be avoided at all costs. Charlatans.