Doing Business in China - Making the most of the free trade agreement

In this section:

› Telephones
› Mobile phones
› Internet
› Laptops
› Email
› Mail
› Fax
› Face-to-face
› Handling invitations

Telephones

The number of landlines in recent years has been falling, from 367.5 million in 2006, to 365.4 million in 2007. If you are calling a company make sure that you have a Chinese speaker on hand unless you are confident you can get through to the person you are calling.

Cold calling is more difficult. Unless you know someone at a company you may find it difficult to connect with the right person.

When contacting a company they will ask up front what business you are involved in and will directly ask what you want with them. Regardless of what you say they are unlikely to continue the conversation, preferring to ask that information about your company be sent to them in writing.

This information is best sent in Chinese and English; although there may be people in these companies who can communicate in English, more often than not the decision makers do not so you would be relying on someone else's translation or interpretation.

Mobile phones

More than 633.84 million mobile phones are in use in China (as at November 2008), a third more than landlines. They are less expensive to operate than in New Zealand and in some respects more sophisticated as Chinese telecommunications companies have invested heavily in the most modern mobile infrastructure.

The Chinese are also very up to date with their phones, with the quality and technology of the mobile phone being a status symbol.

Chinese business people spend a lot of time on their mobiles, rarely turning them off regardless of the situation. This is not a personal affront or a sign of disrespect.

Internet

China does have a modern internet system, but the growth rates are such that the service providers and the system are often under pressure. In addition, there are a limited number of qualified technicians.

The internet in China is closely monitored, so if necessary for your business encryption could be considered. It is wise to operate on the assumption that messages, wherever written or sent, could be reviewed by people other than the intended recipient.

Laptops

The use of laptops is as common in China as it is in New Zealand. Wireless internet is also increasingly common in coffee shops, hotels and in buildings. Security is an issue, so you should take care to protect yourself, but the system is reasonably reliable.

Email

Email is also an increasingly common form of communication, but the set up of company systems is less standard so it's common for companies to use a Yahoo address or other similar service providers.

Be aware that people will change service providers on a regular basis. When they forget a password they will also just start a new address, without access to the previous one. So unless you are frequently in contact by email with an individual or organisation, don't assume that they have received an email communication.

The Chinese law does allow for electronic signatures, but the reality is that the Chinese 'chop' (seal) is what is preferred - a hard copy signed and chopped is what will be most acceptable to most companies.

Mail

China has a marginally efficient postal system - it will take several days to several weeks for mail from China to reach New Zealand, depending on whether air or surface mail is used. International courier firms such as Federal Express, DHL and UPS are more reliable.

Fax

Faxes are still a commonly used form of communication, although less in the main centres than in outlying areas. Faxes are often not connected to the phone system independently, so they will need to be switched over manually.

You will need to call first to ensure that the fax is addressed to the correct person, then call back to ensure that it has been received and then call again to ensure that it has been followed up on. Again, there are no guarantees they will receive the fax.

Face-to-face

Face-to-face meetings are always the most effective means of communication and are critical in establishing a long-term relationship with a company or organisation.

The Chinese much prefer face-to-face meetings, but this doesn't mean that they will always have the desired outcome, nor make the progress expected from the New Zealand end. So it is important to do as much preparation as possible before any meeting, especially one that requires international travel.

For information on etiquette at face-to-face meetings see Dealing with China's culture and business protocols, and the Culture and language section.

Handling invitations

When sending out invitations to an event or activity the recommended process is:

1. If you do not have a contact within a company call the company and source someone to send the invitation to make sure that you have the contact details of the person who has provided you with this information.
2. Then by email or fax, send information on your company, the event and what you want from the invitee.
3. Once it has been sent, contact them again and confirm that it has arrived and that the appropriate person will receive the information.
4. At a later date you will need to contact them again to confirm or otherwise that the information has been received and acted on.
5. This is not a guarantee that the information will arrive and will be acted on, but the other option is to have no idea at all. This is a case where persistence will pay off more than assuming that everything will be alright on the day.