Business people seeking to establish successful working relationships with Chinese partners will find that nowhere are cultural differences more pronounced.

Maltese living and working in China advise entrepreneurs to do their utmost to learn as much as they can about local culture and customs - lack of knowledge often leads to business relationships failing to go past the initial pleasantries.

Karl Xuereb, Malta's Ambassador to China, believes people attempting to do business in this part of the world would do well to learn Chinese so that they are able to communicate better with their counterparts.

"It is not an easy language," he says, himself having learnt Chinese, "but it is important to learn Chinese for relationships to succeed. It also helps to give an insight into Chinese psyche. Also, remember that Western words are converted into characters so even the pronunciation of world-famous brands is altered significantly."

Mr Xuereb was not expecting attendees at Tuesday's business forum at the St Regis Beijing hotel showcasing Malta's investment environment to ask so many informed questions. The Chinese are loath to betray their lack of knowledge in any setting, and local culture places high priority on reputation, respect, courtesy, and "face". Loss of face is to be avoided in all cultures - in China it is to be avoided by either party at all costs.

Mr Xuereb points out that even gesticulation and hand gestures take on a totally different meaning in China: For instance, the hand gesture that signifies "OK" in the West means "three" here.

Punctuality is crucial. Chinese guests of honour usually turn up a quarter of an hour early as a sign of respect and tardiness by non-Chinese guests is frowned upon. Local tradition dictates that meal times are respected religiously and established routines are rarely disrupted.

Malta Enterprise's newly appointed Asia regional leader Paul Cardona has lived in China for five years and speaks the language fluently.

He too believes Maltese firms venturing into the Chinese business environment must understand the culture and attempt to learn the language.

Westerners often have difficulty gauging the interest shown by their Chinese contacts into business ideas during meetings because the Chinese would never betray their lack of interest for fear of being disrespectful, he explained.

Malta Enterprise provided all members of the Maltese business delegation visiting Beijing, Ningbo and Shanghai this week with basic information on establishing "guanxi", Chinese for "relationship".

Doing business in China requires all prejudices and opinions to be left at home. Developing "guanxi" takes time, effort and resources but is well worth the effort to build a strong network. Acquiring the right "guanxi" with authorities could determine the long-term competitiveness of a company in China. Gift-giving, trustworthiness, friendship, patience and contact in person are vital elements.

Most importantly, know your do's and don'ts. Avoid the number four: in Chinese the number is a homonym for the word "death". Red symbolises good fortune but anything written in red ink implies the end of a relationship.

Gifts should be wrapped in red paper. Never give clocks as gifts (they are associated with death and it would be interpreted by the recipient as being sent to their grave). Any gift with a blade like a letter opener is taken to mean a relationship is severed. White flowers are associated with funerals.

The Chinese are especially keen to exchange business cards. Accept a business card with both hands and study it briefly before putting it away. Present yours with both hands (ideally cards for use in China should be dual language) Chinese version up.

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