GUEST COLUMN
CROSS-CULTURAL FLUENCY AS A STRATEGIC ASSET Communicating well in China isn’t about memorising a list of dos and don’ts. It’s about cultivating awareness, respect and adaptability. Success requires understanding implicit messages within high-context communication, honouring hierarchy and mianzi , mastering etiquette, showing patience and learning the language and stories that shape Chinese identity. It also means leveraging local expertise and building a strong network of guanxi . Ultimately, cultural fluency is a strategic asset. Leaders who invest in it build trust, avoid costly misunderstandings and position themselves for long-term success in the dynamic Chinese market.
and wrap them in red or gold. These gestures don’t have to be perfect; your willingness to learn and observe your hosts’ customs matters most. Western executives often equate efficiency with speed, but Chinese negotiations can unfold over multiple visits, banquets and ceremonies. Patience is not passive; it signals respect. The Walt Disney Company, for example, spent years building trust with Shanghai officials before opening its resort. To follow suit, schedule ample time for discussions, prioritise relationship- building over quick deals and manage expectations at headquarters. Recognise that many decisions happen behind the scenes and that patience often yields better terms than haste. Partnering with local experts is also invaluable. Companies such as Uber learned this after early mistakes in China. Hiring leaders who understand the regulatory, cultural and market nuances helps foreign organisations adapt more quickly. A local adviser can guide you on etiquette, regulatory requirements and evolving norms, saving you from inadvertent missteps.
Unlike the transactional relationships common in the West, guanxi is built on a foundation of long-term commitment and mutual benefit. It can unlock doors, resolve disputes and provide access to information that’s otherwise unavailable. Western leaders who fail to recognise the importance of guanxi risk being seen as opportunistic or unreliable.
THE IMPORTANCE OF RITUALS & PATIENCE
Rituals are tangible expressions of respect. When exchanging business cards, use both hands and take a moment to study the card before putting it away. For greetings, nod or use a gentle handshake rather than a firm grip and avoid using first names unless invited. Meals play a central role in relationship-building. Wait for the host to begin eating, join in toasts, sample dishes and leave a small amount of food to signal that you were well fed. Gifts should be offered and received with both hands and are often politely refused before being accepted. Choose items that avoid unlucky connotations – no clocks or umbrellas, for example –
Catherine Hua Xiang i s director of the Confucius Institute for Business London, a partnership between the London School of Economics (LSE) and Tsinghua University and the author of Bridging the Gap , a winner at the Business Book Awards 2025
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Business Impact • ISSUE 5 • 2025
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