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What Sincerity Means in China

In China, as in everywhere else in the world, a relationship personal or business depends in part on sincerity: without it, trust, in another person or business, can be misplaced or abused with serious consequences.

Problems can arise in cross-cultural relationships even when both parties are aware of the importance of their sincerity. Friction and frustration between parties could occur for the simple reason that each culture’s understanding of sincerity differs in fundamental ways.

The Chinese expression, budan xin (pronounced: buu-dahn sheen)  means: “sincerity” which includes the desire to have “budan xin” in their relations with foreign business contacts.

And, who wouldn’t want that feeling of trust; that what was said was honest, and well-intentioned. In China, however, when the person is sincere it means something in addition to how we understand it. Here it is.

The words, “budan xin” is understood to mean “sincerity plus understanding.” In other words, the Chinese expect foreigners to also understand their particular circumstances or positions as they are right now and to accept it.

For example, if a certain task was to be finished by a certain date and isn’t, the reason given could be that an unexpected event just came up. The Chinese would expect that you understand this completely and without question.

When doing business in China, westerners need to keep this in mind and be prepared to show some degree of flexibility with expectations and behaviours. This puts an entirely different spin on the idea of sincerity as we know it.

Only the devil walks in a straight line.

I came across this traditional Chinese saying a while back and it had me thinking. Only the devil walks in a straight line. I can imagine the devil, and walking in a straight line, but what can be meant that only the devil himself walks in a straight line?

After some investigation, I discovered that it generally means (crossed fingers here) that when giving bad news or any kind of news, instructions, anything that could cause loss of face, embarrassment, or have the person feel uncomfortable – do so indirectly. Never directly like what we in North America would call, “telling it directly and straight to the point.” This just does not work well in Asian cultures. Particularly in the early stages of a relationship or business negotiation. It’s not to say that there is never a time for it, but allow the relationship to develop harmoniously first.

Its origins likely trace back to the idea of “Wu.” Which is Chinese for the word harmony. In ancient times the levels of respect, admiration, and power of an Emperor had been largely based on how well the people were living in harmony. When things got out of whack and disharmony erupted, the people could say the Emperor had lost the Mandate of Heaven, Meaning, out he goes in favour of the new guy. Or, new conqueror as the case may be.

Remnants of this are still evident today. Harmonious relationships are desirable in Asian business as it is everywhere. Besides, who wants to be in a long-term business relationship where there is nothing but disharmony? Asians will do business first with those they consider “friends” An often-heard remark about doing business in Japan is that it’s, “easy to sell to the Japanese once but difficult twice.” It is after you have earned their trust and friendship that your business efforts will progress. My experience is that this holds everywhere in Asia.

Being direct and to the point is lauded here, even encouraged. Time is money, get the deal and get out, do not beat around the bush, all these sayings show how differently we think about conducting business. Neither way is better than the other, simply different.  Keeping in mind this saying is a good reminder to be indirect, I guess the devil can get away with walking in a straight line, But then again, the devil can get away with a lot of stuff we mortals can’t.

 

Living in Seoul, I would be approached on occasion by Koreans saying, “Mr. Douglas, I know exactly what you’re thinking, it’s easy, I know.”  With a nod and quizzical reply of, “Oh, really?” to which I’d say to myself, “I don’t think so!! That’s Hogwash!” However, as I learned more about Korean history, society, and culture it began to make some sense. It makes a lot of sense.

Imagine a husband and wife who have lived in the same house, eaten the same meals, watched the same tv shows, and had the same basic conversations for the past 50 – 60 years. After that length of time, they can virtually read each other’s minds. Now, take the same general idea, add a few thousand years and you get what Asia scholar, Boye De Mente calls, Korea’s cultural telepathy. Koreans know this as nunchi. It is so crucial to the Korean way of life, that some see Korean culture as basically a Nunchi culture.

It’s been said that the older, more structured, pure, and seclusive the society is, the more its citizens will communicate nonverbally. Through centuries of imposed, deliberate, and comprehensive programming, Koreans have become culturally attuned with each other’s thinking and behavior. They will think alike and act alike to such an extent that it seems as if they’re “reading” each other’s minds.  Koreans will, however, at times apply this to foreigners. Resulting in the belief that what a foreigner thinks will be the same as them.

Bamboozled by “k – days”

As an ex-pat in the foreign business community, it was common to hear others speak of their confusion and frustrations working alongside Korean colleagues. “I’m having a K-day again” was often heard from ex-pat describing times when we would be bamboozled by Korean’s ways of thinking and acting. They seemed to be on a completely different wavelength to us. One example would be during staff meetings. If the sound of air being sucked in through the mouth was heard it meant a clear, “No.”  Whatever it was, it was “No” neither acceptable nor possible. This and other forms of Nunchi would be clearly understood by everyone at the meeting. Yet, for ex-pats like myself, we would be left in the dark wondering what heck was going on.

The role nunchi plays in daily life

There are, however, approaches that have proven to be most useful. A good place to start is to appreciate how large and long a role nunchi plays and has played in daily life. And, to realize that these nonverbals are understood throughout Korea in pretty much the same way. This makes sense considering that for thousands of years, Koreans were encouraged and at times, forced to think and behave alike. This is how it is and has been for centuries.

What makes this difficult is that it’s opposite to North America and western Europe, where individuals are told to think and act for themselves – independent of others, whether family or workmates.

Ask a Korean for help

Another useful strategy is to develop a close friendship with a Korean at work. Take advantage of this and ask lots of questions as to why something has happened. But do so in private over a bottle of beer. Explain you are just interested in learning as much as possible about Korean culture and its people. In no way make your questions condescending or possibly misunderstood as a slight against them or anyone. And certainly, never against the Korean nation, history, traditions, or culture.

Practical benefits

As you become more knowledgeable of nunchi some very practical benefits will appear. The first being that it helps to reduce your levels of overall stress, frustration, and bewilderment. What at first seemed very odd, is now seen in an entirely new light.

A second benefit is a direct result of less stress. Korea and all Asian cultures place special esteem on the person who can remain calm, cool, and composed in all situations.  To Asians, there is no clearer demonstration of leadership, competence, value, inner strength, and high character. The importance of diplomatic restraint and tact cannot be overestimated.  This is an extremely important skill set to have as it is valued in every culture throughout Asia. It is not uncommon for Asian to use the strategy of upsetting the foreigner to their advantage.

Greater insights – Greater business success

Finally, watch out for examples of Nunchi. This requires a closer observation of Korean nonverbals, like breathing sounds or hand gestures. By doing so, the foreigner will gain greater insights into the nature of the Korean people.  They will learn what is really being communicated and how to respond appropriately. All of which leads to less stress, better relationships, and greater profits.

Avoid the fear of entering new markets

and not becoming a nightmare

There is no doubt that the fear of foreign markets impedes many small to mid-sized companies to enter global markets. “Many are told that it’s risky and expensive to launch internationally,” says Simon Prevost of the Exporters and Manufacturers of Quebec, “But when planning a development properly, these prejudices are unfounded.”

Base jumping in Shanghai, China
Photo: iStock

Too risky! Too expensive! My company isn’t big enough!  It’s the same story heard everywhere from SMEs. However, it can be riskier to stay inactive, cross your fingers, and rely on the limited local, national markets. Including our friends down there in the USA.  Like other markets, any SMEs slice of their customary market can diminish as foreign competition grows and economic conditions change.  Elaine Lamontagne, trade specialist for Europe, at the HEC Montreal business school adds that, “Inevitably, companies must try to regain market share that they lost, and this requires the development of new markets.”

So, how can we avoid the fear of going after new global markets? And, from it becoming a nightmare? Focus Asia along with insights cited from trade experts Simon Prevost, Elaine Lamontagne and Dominic Deneault, senior partner at Montreal-based TREBORA Conseil, have identified six strategic tips that will increase the chance of your success. And, to help overcome the fears of pursuing global opportunities.

Questions and Reflections

Jumping into international markets and not asking key questions and reflecting on them is like leaping from a plane without your parachute packed properly. Start by answering basic questions, such as: what is driving you to go international? Is it a new product, declining or limited sales in your customary markets, perhaps the desire for company growth in the future? Which markets best suit your company, capabilities, products, or services? How soon do you want to get going and get results? What impact will success have on your organization and your finances going forward?

“We cannot stress enough, the first and most important step can be summarized in one word: planning,” says Prevost to which I would add, asking yourself key questions and reflecting on your answers.

TARGET THE MARKET

Face it, some of you will sell product or services that logically could be sold to everyone, everywhere. But as a SME everywhere is just too big. The old term target market is precisely that – a target. For smaller, indie companies zeroing in on a specific market segment can be the better strategy to employ. “Market research is essential,” says Lamontagne, trade specialist from HEC Montreal, especially since it’s now affordable, especially for North American and Asia markets.”

At a Calgary Export Development conference, I attended a few years back, a senior Bank of Montreal executive for international investments gave us this crucial piece of advice. “Do your homework” He went on to say how few companies do the homework and then seemed surprised when things did not go as hoped. His first question to these companies was always, “Did you do your homework – did you research the market?” It’s just that important. If you don’t have the time to do the homework yourself or staff on hand who has business experience in that country market or region, find some one who can help. By the way, a two-week vacation at an all-in Thai resort doesn’t count.

If you are interested in exploring sales opportunities in the fastest growing economic region in the world, NE, and SE Asia. Drop me a line at  info@focusasiamarketing.ca

CHOOSE YOUR INPUT MODE

Your company must then develop an entry strategy that meets both your needs and means. For SMEs three strategies are recommended at first: the simple export of products, joint ventures and the franchising or licensing agreement. The choice of entry mode is critical as it defines the business model that the company should adopt and what adjustments need to be made. Each avenue has its advantages and disadvantages. The choice of entry mode can ensure the success or failure of international development.

BE PREPARED TO ADAPT

Your company must take the pulse of the market it serves. Success in your existing market does not necessarily guarantee success abroad. “We must be prepared to adapt our products/services particularly when dealing with a consumer product that caters to particular [overseas] populations,” says Lamontagne. The way business is conducted varies from region to region. Doing business in Asia is different than in Western societies; doing business in China is different from doing business in Japan.

A good example is Aldo the Quebec based shoe company. It offers shoes adapted to the different marketing strategies depending on the country where they sell. “It opened shops in Anglo-Saxon countries—a culture it knows well. It has also established links with partners that enable it to, among other things, keep abreast of trends.” Aldo has over 3,000 points of sale in 100 countries offering shoes styles suited to each market.

DIVERSIFY YOUR MARKETS

Focusing on a single market is risky. If it dives, so will your company. “It’s a common mistake made by many companies,” says Lamontagne. For example, the economic and political uncertainty in the U.S. causes much concern among SMEs throughout Canada. This is understandable since in 2019 the USA accounted for 75.4% of Canada’s total exports. Canadian exports to China in 2019, were only 3.9%, followed by UK 3.3%, Japan 2.1%, and South Korea 0.9%.

“That doesn’t mean you should pursue two goals at once,” says Lamontagne. “It’s perilous to embark on conquering two markets simultaneously, especially when you have little experience, because the unexpected can quickly multiply.” Prevost agrees. He says it is better to concentrate your energies on the development of one market at a time. Companies can dramatically reduce their levels of stress and fear of the unexpected by taking courses in the cross-cultural aspects of doing business in Asia.

DEMONSTRATE FLEXIBILITY

“It’s good to covet international markets, even when they’re out of your comfort zone”, says Deneault. And I could not agree more. A common mistake that companies make in Canada is to think like North Americans rather than imagine and then learn about what doing business is like in other cultures. The development of attractive websites, attending trade shows, distribution of pamphlets and other approaches have seduced North American business, but they are not necessarily effective in Asia.

“Leaders must understand that in these markets, human relationships are preferred,” says Deneault. In Asia, doing business is based on good relationships. That requires a personal investment. Leaders often must increase business travel and zoom meetings, to demonstrate an openness to the culture of the country where they wish to do business. “I know businesspeople interested in China not only taking Mandarin classes, but cooking classes,” says Dominic. These leaders must be patient and realize that these small gestures will be profitable in the long run.

I hope you have learned and enjoyed these six strategic tips. Going international doesn’t have to turn into a nightmare. There is no boogie man in the closet and just like when we were kids, all have to do is turn on the light. Until next time, all the best.

 

I just wish someone had told me.

My first business card was for a sister-city business development tour to Japan as a 16-year-old. It had the Y’s Men logo, my photo, name, and address complete with a nice glossy finish. I could hardly wait to pass them out. I felt so important and was sure the Japanese would be extremely impressed. Looking back years later, I am sure they were not impressed with me at all. But in keeping with the Japanese custom of polite behaviour, they never let on that I had insulted them. Had I known what follows, I would have made the effort to avoid coming off as the uncouth, disrespectful 16-year-old buffoon who stepped off the plane in Tokyo for the first time.

Here’s what I wish I had known, some big mistakes I could’ve avoided. Plus, a bonus Tip

Big Mistake #1- Lack of Respect

Before going to Japan, I had no idea of how important business cards were to them and in fact, to all Asians. As a cross-culturally naïve young North American, what I had thought were only bits of paper were documents to be treated with the utmost respect. Each card holds the information you need to start your business relationship on a positive note.

For instance, cards inform you about the person’s status, position, and sometimes the university they attended. It will show you how to address the person appropriately; Doctor Kim, instead of Mr. Kim, for example, or for a government official in Malaysia, the term “Datuk.” Business cards are essential to guide your future interactions in the most appropriate manner. Whether the person is the head of a multi-billion-dollar corporation or a cab driver, each expects and deserves your respect.

Big Mistake #2 – Not Handling with Care

Passing my cards out with one hand while in Japan was bad enough, but how I accepted and treated their cards in return was atrocious. One key contact was Dr. Namoto, a well-respected businessman in the local community.  When introduced, I took his card with my one hand, just like we do in North America, and quickly stuffed it in my back pocket. Then I sat down. The look of horror on Dr. Namoto’s face still haunts me to this day.

Accepting Cards – the Right Way

Accept cards with both hands. Do not place your fingertips over the company logo or anywhere near the person’s name. Doing so is a sign of disrespect not only to the person, but to the organization as well. Instead, hold the card by its edges.

Giving Cards the Right Way

When giving your card, make sure your name is facing towards the person for easier reading. And, don’t have your fingers covering your company’s logo or your name.  In Malaysia, you may need cards in multiple languages such as Malay, Chinese and English.

Big mistake #3 – Not Studying the Card

Take time to really study your contact’s card so that you can understand (the best you can) exactly who you are meeting. By doing this, you learn not just the person’s identity and title, but the degree of respect you need to show. Look for academic credentials. For instance, in Korea, graduating from a SKY university has great significance (SKY stands for Seoul University, Korea University, Yongsan University).

When I say study, I don’t mean spending an inordinately long time looking at it. Just look long enough to have a firm idea about who has given you their card.

Need more insights in how to do business in Asia?

Give us a call: 1 403 891 4630 or email info@focusasiamarketing.ca

Big Mistake #4 – Writing on the Card

Never, ever, write on the card—especially in front of your contact. This happens sometimes in North America but never in Asia. In Asia, writing on someone’s card not only defaces it but shows little to no respect for the person.

To help me remember things, I would make notes based on the card and the discussions I had, but only later in private. Taking the time to do this was worth its weight in gold. Not only did it make remembering details (such as who was who) easier but was a great resource for later. I am always impressed by how much Asians would remember about me and my company from only a brief discussion. Their secret? They were doing the same thing I was—making notes afterwards.

Big Mistake #5 – Disrespectful Placement

Where you place your contact’s card after studying it makes a big difference. Ideally, you would gently place it inside your card holder, that’s kept inside the left side pocket of your suit jacket.  Why left and not right? Because it is closer to the heart; it demonstrates more warmth, sincerity, friendship, and respect. You can get away with carefully placing it inside your left-hand shirt pocket. However, never stuff it inside your front pants pocket or worse, like I did, in the back pocket. And, then sit down on it. No wonder Dr. Namato was horrified.

Big Mistake #6 – Jumbled Cards

At a business meeting or dinner, place the cards in front of you in the same seating order as your dinner guests. This is helpful, as it’s possible that many of those across from you will have the same last name. In Korea for instance, there are only 300 family names. Of these, almost 50% are named Kim, Lee, Choi (pronounced as Chay) or Park (pronounced as Pak). This can get confusing.

In formal meetings or negotiations, your Asian counterparts will enter and sit down according to rank. The highest-up person enters first, followed by others according to their rank. This is a good example of how in Confucius-based cultures, societies are structured in hierarchies whereby a person’s rank is clearly defined and must be maintained.

Big Mistake #7 – Dirty, crinkly cards

Because I had no clue how important cards are everywhere in Asia, I treated mine like pieces of scrap paper.  As a result, it did not take long for my crisp and clean snazzy cards to look dirty and tired. What I had not noticed was that the cards I received always looked clean and fresh – no smudge marks or frayed corners. This was not only a sign of respect to me but also a sign of self-respect by the giver. Giving a battered card gives the impression that you really don’t care about them or yourself. Keep cards in a nice case to take with you. Extra cards can stay in their box not floating around free in your suitcase.

Bonus Tip – Spot the Boss

This one does not have to do with cards, but it’s an important nonetheless, specifically when dealing with large Chinese contingents. The person sitting across from you may be the head of the company, but they do not have the final say. They have power — to be sure — but the final approval always comes from the party official in attendance.  It’s rare that you would be told exactly who that person is, as they prefer to blend into the background. It can be hard to guess who it is, but I would look for the quiet, unassuming person tagging along with the delegation. The one you might think is just a mid-level supervisor or manager? Nope. He or she holds the real power. Without their approval, things grind to a halt.

The moral of this little bonus tidbit is to treat everyone you meet with respect. You can never be 100% sure exactly who you are talking with, especially when it comes to the Chinese This is good advice when doing business in Asia (and anywhere else, for that matter).

If only I could time travel back and tell young Doug these things, he could have avoided a lot of embarrassment. We learn from our mistakes. The goof up’s I made as a teenage is now your gain.  I wish you all the best on your journey entering Asian markets.

Need more insights in how to do business in Asia?

Give us a call: 1 403 891 4630 or email info@focusasiamarketing.ca