o2-v2.com http://www.o2-v2.com/en/blog/trust-no-one-how-this-principle-will-affect-your-business-in-china

Ozone Inbound Marketing Blog

"Trust No One" | How This Principle Will Affect Your Business In China

Everyone knows that doing business in China is no cake-walk.

For those of us planning to set up business in China, the cultural difference between the West and China can beone of the toughest hurdles to jump. Understanding Chinese business etiquette is the difference betweensuccess, and failure.

Trust is very strongly emphasized when doing business in China, but as an 'outsider,' how do you earn trust? Istrust in China different to that of the West?

Keep reading as we examine how trust works in China, and how you can crash the party...

Build Trust, Or Die

Trust in China is a sink or swim issue.

Trust is crucial to doing business in any country, be you in the USA, Japan, Germany, South Africa, or China.However the way that you build trust differs wildly.

Trust In The West

In the West we're used to building trust with other organisations via social, and legal systems. Trust can be lostbased on how business is done, but initially being new to one another is not a barrier to cooperation.

"In the West we instinctively trust until given reason not to."

This system is taught from a very early age, and the Western society is built upon the principles that honesty and

trustworthiness are wished for and rewarded. In fact, it's almost impossible to do business in the West if you're nottrustworthy, and those that aren't will be punished by the law. Therefore trust is very 'paper based' there.

Trust In China

Trust in China is built differently. Here it is more about earning trust on a personal level, becoming friends first, anddoing business later.This can be a little odd for Westerners, as we can commonly have long-standing business relationships where wedon't know our counterpart personally at all. Instead having mutual trust and respect simply due to our businessdealings.

"In China we don't trust until there is enough evidence of trustworthiness."

The main difference is that the Chinese are naturally very protective of themselves in business situations, and soyou have to put in more effort to break through their barriers, earn their trust, and become a part of their 'circle.'Therefore we can say that trust is 'relationship based' here.

This is because the legal system, which provides a safety net to being cheated in the West, isn't as developed orstrong in China. This creates an environment where more cheats are able to prosper without being caught here,and so a very 'protectionist' mentality has arisen where Chinese people are naturally cautious around strangers.

This famous Chinese proverb demonstrates why the Chinese like to keep a close-knit circle of trusted friends andcontacts:

"Who trusts too many often ends

By losing trust in all"

How The Chinese Protect Themselves Against Trouble

The Chinese therefore, have built their own relationship based trust system that helps to protect against 'badapples.'

They become personal friends with potential business contacts first.

Introductions by people who are already in someone's group are important.

Earning 'Guanxi' will give you a head-start.

Much time is spent not doing business before business can be done. This may seem like a waste of time toWesterners, but the many dinners, lunches, trips to karaoke, and to sports events, are the Chinese way of feelingout the 'opposition' and deciding whether you can be trusted enough to do business with.

Here's How You Build Trust.

Now you know why trust is an issue in China, and so it's clear that as an outsider you need to change yourthinking to a more Chinese way in order to get ahead there.

But what can foreigners do to avoid going in blind?

Learn to be friendly: Becoming friends with your counterpart, and their family, is essential. It won't benatural to you, hence needing to become friendlier.

Develop your own personal network: You never know when you might need to call upon your Chinesefriends, and if they know people you'd like to do business with they can help to introduce you to each other!

Make allowances to the Chinese to show that you're on their side: As an outsider, a measure of fearand mistrust will surround dealing with you. If you try to be open to Chinese needs and wishes, and beflexible however different these should be compared to dealing with Western companies, this will go a longway towards showing that you are one of the good guys.

Gaining the trust of the Chinese will be hard if you're not spending time in China, getting to grips with the people,how they do business, and soaking up Chinese business etiquette.

There's only one thing for it... Come to China!

Taking Your First Step Towards Doing Better Business In China

Before you jump on the plane however, you should be laying the groundwork in order to gain an advantage overother Western companies planning on breaking into the China market.

If you're planning on setting up an office in China, read this blog.

A good start would also be to understand Chinese business etiquette before you arrive!

Oxygen 2.0 can help! We've recently put together a FREE E-BOOK on Chinese business etiquette that canhelp you to understand what the Chinese do in business situations, why they do it, and how you can fit in and getahead.

Simply click this button below , and download your copy today:

Oxygen 2.0 are a full service inbound marketing agency based in Shenzhen, China, and Hong Kong. We knowbusiness in China having been here for a decade, and are placed to help you market your products or serviceshere. We publish new blogs on business & marketing in China every week here, so remember to take a look formore great tips and ideas!