The China Appeal: Unraveling The Country's Business Travel Magnetism

Business travel to China has picked up since the country resumed issuing visas to foreigners in March 2023. However, it is important for business travellers to be aware of the risks and challenges associated with travelling to the country. The U.S. State Department has issued a Level 3 travel alert for China, urging travellers to reconsider travel due to the arbitrary enforcement of local laws. Travellers should be mindful of the increasing legal and cyber risks, unique business etiquette and cultural sensitivities, and learn how to respond to these challenges to ensure a safe and successful visit.

Visa requirements and documentation

Business travellers to China will need to obtain a visa prior to their arrival in the country. The type of visa required will depend on the purpose of the visit. For commercial and trade activities, such as visiting clients, meeting business partners, and attending trade fairs, a China "M" business visa is needed. This type of visa is typically valid for three months, with a 30-day duration of stay, although this can be longer depending on the applicant's personal case. US citizens may be eligible for a 10-year multiple-entry visa.

For academic exchange, research, attending conferences, and university collaboration, a "Category F" business visa is required. These visas are typically valid for three to six months with one or two entries.

The following documents are typically required for a Chinese business visa application:

• A valid passport with at least six months of remaining validity and at least two blank visa pages. The passport must be signed and include one copy of the personal information page.
• A completed typewritten application form with a recently taken colour photo that meets the strict requirements specified by the Chinese Consulate.
• Proof of legal stay or residence if applying from a third country.
• A business visa invitation letter from a Chinese business partner, a duly authorized Chinese institute, or a trade fair. The invitation letter should include the applicant's information, details about the intended business visit, and information about the inviter.
• A business cover letter from the applicant's US-based company, printed on company letterhead.
• Proof of state residency, such as a driver's license, government ID, or utility bill, displaying the applicant's current residence address.
• A completed visa application form, signed and dated in blue or black ink, with all required fields completed.
• Former PRC nationals or individuals born in Chinese territories may need to provide additional documentation, such as a copy of their most recent China visa and passport, a copy of their Green Card, and/or a copy of their Naturalization Certificate.
• US citizens born in certain countries, such as Afghanistan, Cameroon, Iraq, Iran, Pakistan, Nigeria, Tunisia, Turkey, or Syria, may be required to make a personal appearance to apply for a visa.
• NGO/non-profit workers must provide an employer letter and personal statement, and their application will be subject to additional review.
• Applicants with a criminal record will be required to appear in person at the consulate to provide biometrics.

In some cases, additional documents may be required, such as a "Where You Stay" form, a "Declaration of Active Military Service" form, or other supporting materials. It is important to carefully review the requirements and procedures for the specific type of visa being applied for, as well as any updates or changes to the visa application process.

As of August 2023, China has also introduced the option for foreigners travelling to the country for business activities to apply for a business visa on arrival. This option may be useful for those who need to travel to China on short notice and do not have time to obtain a visa in advance. However, specific details and requirements for this on-arrival business visa are yet to be finalized and implemented.

Business culture and etiquette

Business culture in China is heavily reliant on personal relationships, so building and maintaining good relationships with key business contacts and government officials is crucial. This can be done through attending industry networking events, contacting industry associations, and following up on personal introductions. However, it's important to remain vigilant for potential scams.

Face

The concept of "face" is foundational to doing business in China. "Face" refers to the respect and dignity of an individual and is of utmost importance in Chinese culture. Causing someone to "lose face" can be deeply insulting and may result in lost business deals. Respect and humility are key to giving your Chinese counterparts "face". Direct disagreement or raising questions in public should be avoided, as they can cause someone to lose face. Instead, any suggestions or challenges should be brought up carefully in private.

Communication

Business in China is usually conducted in Mandarin Chinese, except in Hong Kong and Macau, where Cantonese is the lingua franca. English speakers are rare, so it is beneficial to have an interpreter or a Chinese-speaking colleague present.

The WeChat app is widely used for both personal and business communication in China. It is used for messaging, paying for things, buying train tickets, and many other daily tasks. It is essential to have WeChat installed on your mobile device before arriving in China.

Meetings and Greetings

Punctuality is highly valued in Chinese business culture, so it is important to arrive on time or slightly early for meetings. Meetings often start with a handshake and the exchange of business cards. It is customary to use both hands when giving and receiving a business card and to examine the card for a few moments before putting it away. Business cards should have information in both English and Chinese, with the Chinese side facing the recipient.

Small talk and relationship-building are considered important at the beginning of a meeting. Chinese business people appreciate it when their counterparts use a few words in Chinese, such as "Nihao" ("hello"). However, it is important to be careful with the choice of topics and avoid political discussions.

When addressing people, it is respectful to use a title followed by their last name. Using the term "comrade" should be avoided unless one is a committed communist.

Gifts and Dining

Gift-giving is a common custom in Chinese business culture. However, due to government crackdowns on corruption, it is important to keep gifts small and not too expensive. Gifts that are unique to your home country or region are often appreciated. When giving or receiving gifts, always use both hands as a sign of respect.

Dining and banquets are an important part of building relationships in Chinese business culture. It is customary to wait to be seated according to the seating protocol based on hierarchy. During meals, it is considered polite to sample a variety of dishes, but it is important not to eat too much at once as the food will keep coming. Strong alcohol, such as baijiu, is often served, and toasts are a common part of the dining experience. Abstaining from drinking may be challenging, as it is considered an important part of building personal relationships. However, a medical reason is usually respected if communicated in advance.

Dress Code

The dress code for business meetings in China is generally conservative suits for both men and women. Bright colours are typically considered inadequate. For men, a button-down shirt with slacks and nice shoes is expected, while a jacket and tie would be considered formal. During the summer, short-sleeved button-down shirts or polos are common due to the heat. For women, a simple blouse and skirt or a pant suit are appropriate. Jewellery and makeup are acceptable and expected for women.

Other Considerations

When scheduling appointments, it is advisable to do so during the periods of April to June and September to October. Business hours are typically 8:00 am to 5:00 pm, Monday to Friday, with a break between 12:00 pm and 2:00 pm. It is important to be mindful of national holidays, especially Chinese New Year, when planning meetings or travel.

China has a low threat level for crime and terrorism. However, foreigners should be aware of potential scams and petty crimes in crowded areas. It is also important to note that the Chinese government strictly controls demonstrations and prohibits certain activities, such as unauthorised religious activities and gambling.

Safety and security risks

Business travellers in China face a variety of safety and security risks, from petty crime to arbitrary detention and cybercrime. Here is an overview of the key risks to be aware of when travelling to China:

Arbitrary Detention and National Security Laws:

Foreign nationals, including business travellers, have been detained by Chinese authorities on vague grounds of 'endangering national security'. This poses a significant risk, particularly for those with government, military, or human rights backgrounds, and dual nationals. The risk of arbitrary detention is elevated for those who are perceived as criticising the Chinese government or addressing sensitive topics.

Cybercrime and Cyber Espionage:

China has a sophisticated state-sponsored hacking system, and cybercrime is a significant risk for business travellers. It is advisable to assume that your electronic devices and communications will be monitored and to take precautions such as using VPNs, encrypted messaging services, and portable USB devices with hardware-based encryption.

Scams and Fraud:

Scams targeting travellers are common in China and can lead to financial loss, violence, and serious assault. Be wary of friendly strangers inviting you for tea, massages, or other services, as they may be part of a scam. Additionally, counterfeit currency is prevalent, and travellers should be cautious when receiving cash.

Health Risks:

China has a high risk of infectious diseases such as bird flu, HIV/AIDS, rabies, and hand, foot, and mouth disease. Take precautions to protect your health, including avoiding live poultry markets and practising good hygiene.

Transportation and Traffic:

Traffic accidents are common in China due to poor road conditions, high traffic volume, and low driving standards. It is advisable to use reputable transportation services and ride-hailing apps. When using taxis, ensure that someone knows your location and try to take note of the taxi's number.

Natural Disasters:

China experiences natural disasters such as earthquakes, typhoons, and floods. Stay informed about weather conditions and follow the instructions of local authorities in the event of a natural disaster.

Political Sensitivities and Protests:

China has strict control over demonstrations and public gatherings. Avoid any demonstrations or large gatherings as they may turn violent, and never photograph or film protests. Refrain from discussing sensitive political topics, including the Chinese government, Hong Kong, and Taiwan.

Crime and Theft:

Petty crime, including theft of personal items, is common in crowded areas and on public transportation. Be vigilant and aware of your surroundings to reduce the risk of becoming a target.

Drug-Related Offences:

China has strict drug laws, and authorities conduct random drug tests on foreign nationals. Penalties for drug offences are severe and can include detention, deportation, and even the death penalty.

Cultural and Religious Sensitivities:

China has specific cultural and religious norms that should be respected. For example, avoid displaying public affection, and be cautious when discussing religious topics, as only five religions are officially recognised.

When travelling to China, it is crucial to stay informed about the latest safety and security risks and to follow the advice of local authorities and your home country's travel advisories.

Language and communication

Mandarin Chinese is the national language of China, and is used for business communication throughout the country, except in Hong Kong and Macau, where the lingua franca is Cantonese. While some people in certain industries may speak English, this is the exception rather than the norm.

Business cards are a common feature of Chinese business culture, and will often be exchanged upon meeting someone new in a business context. Cards should be offered and received with two hands, and studied before being put away. It is important to note that the family name or surname comes first in Chinese, followed by the given name. For example, President Xi Jinping's family name is 'Xi', and 'Jinping' is his given name. It would be respectful to refer to him as 'President Xi', whereas calling him 'Jinping' would be insultingly informal.

When greeting a Chinese person in a business context, a traditional handshake is sufficient for both men and women. A simple 'Nihao' or 'hello' is an appropriate way to start a conversation.

Business meetings may start a little late, or with the serving of hot tea. Meetings often begin with relationship-building, which may be considered rude by foreigners who value being quick, straightforward, and punctual. This can be attributed to the importance of relationships, or 'guanxi', in China.

While some international businesses in China communicate using email, this is not the preferred method for communication throughout most of the country. Instead, the WeChat app is used for almost all communication, including both personal and business. It is used by the vast majority of China's 1.4 billion people to pay for things, buy train tickets, and perform other daily tasks beyond instant messaging.

It is important to remember that in China's business economy, relationships are currency. When connecting with a Chinese counterpart on WeChat, it is not just to schedule appointments and negotiate agreements. It is also to build a relationship that will serve as the foundation for future business deals.

When it comes to names, people may introduce themselves with an English name, to show respect and because they know that Chinese names can be hard for foreigners to remember. However, it is respectful to ask for and use their Chinese name.

China has six major dialects, as well as numerous local dialects. Each region has its own sub-culture, and in many cases, its own language or dialect.

Communicating as a Foreigner in China

For foreigners travelling to China, it is important to note that international and domestic phone calls can be made with little difficulty, especially in major cities. Phones can be rented at airport arrival terminals for short-term use.

While it is possible to purchase a SIM card to use with your phone in China, it can be a tedious process. It may be better to use international roaming with your home plan, or to purchase a pre-paid China SIM card to be delivered before your journey. Remember that China censors its internet, so unless you use a VPN, you won't be able to access Google products, social media, and most western media, among other blocked websites.

Communicating as a Chinese Citizen Abroad

Around 10 million Chinese citizens speak English, but language barriers can still be an issue for Chinese outbound travellers. Many Chinese travellers fret about not being able to communicate when abroad, and opt to travel as part of a package tour group so that they can speak Chinese. Some travellers turn to translation tools on the market, or use their mobiles to translate online.

Chinese travellers may also research recommendations and guides in Chinese before travelling to a destination.

Political sensitivities

China is the world's second-largest economy and an important trading partner for many countries. However, doing business in China can be challenging due to political sensitivities and the risk of arbitrary enforcement of local laws. Here are some key considerations regarding political sensitivities when doing business in China:

Government Influence on Business

The Chinese government plays a very active role in the management of the national economy, and domestic businesses often receive privileges and protection not afforded to international firms. Market access for imported goods and services is often limited, while Chinese businesses enjoy state, financial, and regulatory support. Many domestic firms are partially or fully owned by the government, and market access is often made provisional on transferring technology, conducting research and development in China, or acceding to other specific requests.

Intellectual Property

China has a reputation for a less-than-rigorous approach to intellectual property (IP). While the country has modern IP protection laws and regulations, enforcement remains an issue. Companies with IP to protect should carefully vet potential partners and research their rights under Chinese law by consulting attorneys and advisors with specific experience in the Chinese market.

Territorial Sovereignty

Global enterprises must be cautious when dealing with matters of a politically or culturally sensitive nature, particularly regarding territorial sovereignty. Referring to Hong Kong, Taiwan, or Tibet as countries or quoting the Dalai Lama can lead to intense criticism and boycotts. Companies that make such missteps often have little recourse but to apologize to undo the damage and maintain their market presence.

Human Rights Concerns

There are widespread and systematic human rights violations in the Xinjiang region, including the extrajudicial internment of Uyghurs and other ethnic minorities, severe restrictions on culture and religion, pervasive surveillance, forced labour, and enforcement of birth prevention policies. Businesses that directly or indirectly provide goods and services to authorities in Xinjiang or have supply chain links to the region risk being complicit in these human rights violations.

Data Security and Surveillance

China's data security landscape is continually evolving, and businesses must navigate complex regulations and sector-specific requirements. Companies should seek specialist legal advice to ensure compliance with data regulations and protect sensitive information. Additionally, all means of communication in China, including telephones, emails, and text messages, are likely monitored by the government.

Bribery and Corruption

China has enacted extensive anti-bribery and anti-corruption legislation, with tough penalties for violations. The anti-corruption drive has targeted foreign and domestic companies in key sectors. Businesses operating in China should review their compliance policies and practices to avoid any potential violations.

Exit Bans

The Chinese government has been known to prohibit foreign nationals involved in business or legal disputes from leaving the country until the matter is resolved, which can sometimes take years. This can create uncertainty and restrict the freedom of movement for individuals conducting business in China.

Joint ventures operating within China are considered domestic entities, and disputes involving joint ventures will typically be arbitrated within China. The loss or theft of company chops (official red stamps used as a form of signature) can have severe consequences, as they can be used to bind the company in important transactions without the authorisation of the legal representative or shareholders.

In summary, while China offers significant business opportunities, it is important to be aware of the political sensitivities and challenges when doing business in the country. Companies should conduct thorough due diligence, seek expert legal advice, and implement strong compliance policies to navigate the complex political and regulatory environment in China successfully.

Frequently asked questions