No Clocks

It's not only important to have guanxi, it's also critical to understand the Chinese culture. Brad Weaber, chief customer officer and executive vice president at Experient, got a taste of the cultural differences when meeting his counterpart at FESCO for the first time. As Weaber explained at a session at the 2007 American Society of Association Executives annual meeting, the Chinese executive was upset because he initially thought that Weaber was too young and not his equal at the company. Once it was explained that Weaber was indeed an executive at the company, the meeting went well. “Title-to-title exchange is critical,” says He. “It's all part of Confucianism: Decision-making is top down.”

Another no-no is to discuss business at a dinner, says He. “Dinner is for enjoyment and relationship-building, so don't talk about business,” she says. “If we are friends, if we really get along, you will get the business.” If you don't get along, chances are you won't.

It's also customary to offer gifts upon meeting clients and partners. Gifts don't have to be too expensive, but they should be thoughtful and come from your home country, not China. It should be something uniquely American, explains He — anything but knives or clocks. “Any gifts with sharp edges, like knives, are considered to be rude and unlucky,” she says. “And never give a clock,” she adds, because in Chinese, the word clock has the same pronunciation as death.

For Experient, the path to success in China is to form strategic alliances with culturally savvy and experienced partners to serve the meeting planning company's existing customers. Others may decide to open a local office and try to grow their business in China. Either way, guanxi is paramount to expanding into this rapidly developing destination.

Guanxi, Confucian Tenets, and Lucky Numbers

Here are some tips for American meeting planners on holding events in China.

• The Chinese dislike doing business with strangers; it's helpful to be introduced by an intermediary known to both sides. Alternatively, if you make an independent initial approach, you should provide references and as much information as possible about your company and what you hope to accomplish.

• The Confucian system of ethics and morals governs much of the way Chinese interact with one another, even today. It emphasizes duty, loyalty, sincerity, and respect for age and seniority. It also explains China's bureaucracy — strictly hierarchical, with well-defined ranks and privileges. Decision-making is top-down.

• All foreigners need to have visas when entering China.

• More than 10 air carriers operate more than 100 flights every week between China and North America. Event planners have many choices for air services, and capacity is expected to expand in the coming five years.

• The meeting industry is still in its infancy, so facilities and services might not be at the level expected in the U.S. However, you can find all the international hotel chains in China, even luxury properties, particularly in big cities like Beijing, Shanghai, and Guangzhou.

• China has many spectacular attractions, such as Forbidden City and the Great Wall. These historic destinations can be reserved as an event venue or for a side trip; however, it does take some advanced planning and effort to get approval from the local authorities.

• Food is an important part of Chinese culture. The vast array of dining experiences will enhance the appeal of your events.

• When meeting with a potential partner or client in China, add a line on your business card written in Chinese, whether it's your name or title. It's a good icebreaker and shows an interest in and knowledge of China.

• The number 8 is lucky in China, so anything with that digit makes a good gift. Talk about a good luck omen: The 2008 Beijing Olympics on 08/08/2008 at 8 p.m.

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