Executive Travel: Spotlight on HONG KONG : When Doing Business There . . .

Though British influences are evident in government and commerce, business dealings also reflect the traditions of Hong Kong’s 98%-Chinese population.

DO

* Exchange business cards. They are always exchanged upon introduction, and both hands should be used when giving and receiving.

* Use courtesy titles until the person you are addressing suggests an alternate form. Also be aware that it is Chinese tradition for the surname to appear first.

* Be prepared to deal with your contact’s relatives, since most businesses are closely held family ventures.

* Try to resolve legal matters and disputes out of court, as preserving relationships and saving face is vital in Hong Kong. Although English common law forms the basis of the legal system in Hong Kong, some Chinese legal traditions are also employed.

* Be prepared to do some business in languages other than English. English and Cantonese are official languages. The former is the most widely used in business, but Cantonese is commonly spoken in the Chinese community, and many in Hong Kong also speak Mandarin, which is the lingua franca in China. After 1997, English will still be an official language among the executive, legislative and judicial authorities in Hong Kong.

* Avoid overly aggressive or loud behavior. Control both positive and negative emotions. Physical contact is frowned upon. However, a brief handshake is common.

* Expect to spend a lot of time laying a foundation, building relationships and proving your capabilities.

* Be aware that most companies are run by a single, dominant executive with more top-down decision making than consensus building. As a result, business decisions are often made more quickly than in other Asian countries.

* Be aware of the influence of ancient Chinese traditions. For example, a feng shui specialist may be consulted on the layout of an office, or an auspicious day may be chosen for the signing of a contract.

DON’T

* Don’t be late for appointments. Hong Kong executives expect promptness.

* Don’t use broad body gestures. Unless pointing to something specific on a document, use the whole hand to point and the hand with palm down to beckon.

* Don’t respond to invitations over the phone. It is considered impolite. A formal written response is more appropriate.

* Don’t expect to get a lot done during the Chinese New Year in February, as many businesses close for as long as a month.

* Don’t expect to have to deal with Chinese officials immediately. But many executives are making informal contacts before the 1997 transition.

Source: John Irvine, Price Waterhouse