This is a very detailed discussion on how a Business KTV works in China. This is a pretty large multi-part post. It was originally posted HERE, but it soon became problematic as the videos would not load and the SEO flags weren’t being picked up by the search engines. So I broke it down into smaller bite-sized posts. It’s faster to load, easier to read, and you can see all the videos without problem. Enjoy.
This is part 2 of 17.
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Tea Ritual
China has many different kinds of rituals for tea. By now, you would have experienced the business negotiations over a tea ritual that occurs at the factory in the office. This is a dinner tea ritual. Here, you use tea to wash the cups and plates.
For our purposes, I like to call this small event the “Chinese business tea ritual”.
Granted, all the cups and plates are pre-sanitized. They are in these clear shrink-wrapped bubbles, that you need to break open to get the dishes out of. I typically use my chopsticks (quaizi) and punch a hole in the sealed plastic. Then tear it open with my hands. The idea is to get all the dishes out of the bubble wrap. Then, once they are out, you pour the scalding hot tea all over the dishes and utensils to clean them.
Once the dishes have been washed, you then pour the (now dirty) tea into a large clear bowl that is provided for exactly that purpose. The bowl will be passed around and then taken away by one of the waitress chicks.
And, that is about all there is to the “Chinese business tea ritual”.
Drinks
Before the food starts to arrive, there will be the decision on what kind of alcohol that you will be drinking. Typically, beer is a drink for lunches. Evenings, especially for a night of hard drinking will have to get started off right. If given the choice, I vote for red wine.
The wine in poured into a large glass carafe. One person, typically an aide of the factory boss will take on this responsible, or at the very least will instruct the waitress to do so.
“Red wine” is drunk not like wine is drunk in the West. It is quaffed down in glasses “bottom up style”. (Gan Bei!) Typically, you will need to drink to everyone at the table individually. Then multiple times with your host. You will also be expected to drink with your aides.
There are really three ways of drinking;
- Full glass (reserved ONLY for the boss and to cheer an agreement.)
- Half a glass (the most common) called “ye ban de ban”.
- One fourth a glass (offered about mid way though the meal) called “ye ke”.
Drinking red wine permits you to be able to stand up straight after your meal and be able to walk to the KTV without having to be supported by your aides. This is pretty important to save “face”. Though if everyone is drinking VSOP, XO or that God-forsaken 53 degree “white wine”, you will all need to be carried out.
White Wine (BaiJiu)
In China today Baijiu is drunk almost exclusively at meals, as alcohol is a very important part of Chinese dining culture. Baijiu is served in shot sized glasses and used during toasts to show respect and build relationships.
When toasting, the Baijiu glass of is gripped with both hands, with either one hand on either side, or with one hand/finger on the bottom of the glass. After a Er Guo Tou (二锅头) is a cheap type of Baijiu available every-where-toast the Baijiu is usually consumed in one gulp.
Following a toast, the glass can be turned upside down or tilted forward to display that one has consumed the entire glass, and thus give face to your friend, partner or host.
If you do decide to drink VSOP or XO, make sure that it is mixed with green tea, else you will get too drunk too quickly.
One should pay attention not to raise his/her glass higher than those of the respected elders; When two glasses clink, how high people hold their glasses shows hierarchy. When the host toasts you, keep his glass higher. These insights hold true at most dinners with hierarchy, such as corporate dinners with bosses, meals with clients and multi-generation family gatherings.
Personal Note. Some younger factory bosses or owners will get excited and try to show you respect by trying to slam dunk Gan Bei. Do not fall for it. Aside from trying to make you unable to stand up, it will completely decimate your blood fluid pressure in your nether regions. Which really sucks, if offered full-on hospitality. Always moderate your drinking. Afew Gan Bei's are fine. Just keep it under thirty in total. In general, the rule should be occasional drinking. Have your second (in command) drink for you.
In many places in China, especially northern China, the drunker a person becomes via being toasted with Baijiu (or other liquors and alcohols) the more Face has been conferred upon them. Therefore, it can be common for visitors to China to be entertained by well-meaning Chinese hosts who are intent on showing them as must respect as possible, by getting them as drunk as possible, on an completely unfamiliar and relatively strong liquor.
In the United States, the “diversity manager” would have a heart attack!
Be respectful (jìng jiǔ敬酒)
jìngjiǔ 敬酒 : “respectfully proposing a drink.” People will likely toast you to show their respect and hospitality. As a foreigner, you’re not expected to do likewise, but it will be much appreciated if you do. Once you’ve started, make sure you toast everyone who might outrank you. If the people are many and you’re worried your head might not take it well, you can tick them off in twos and threes; it’s perfectly acceptable.
When someone toasts you, you should immediately stop eating and drinking to accept and toast in response. All people sitting at the same table must stand up, upon the initiative of one of the guests, and toast in succession; Remember, one should never refuse to participate in a toast. If you turn down a drink, your Chinese counterpart may feel like he has lose his face.
If you’re the one offering the toast, you’re putting yourself in an inferior position, which means you have to be the more respectful one. Thus, it’s better if you stand up and empty your cup completely. The other person may remain seated and drink just a bit, but usually they will go out of their way to show you the same respect.
Important Note
As a Westerner, it is our default understanding to assume that this is just “drink”. That this is just “dinner”, or that this is just “socializing”. It is no such thing.
These are time honored rituals that have been cultivated in Chinese culture for centuries. You, as the person who participates in the rituals, are now being judged on your ability to “join the fold”, or (to use the common parlance) “join the tribe”.
Don’t fuck it up.
In The United States, there would be these networks of “good old boys” and they still exist, though they have gone underground. You will be judged in your ability to handle yourself. You will be judged in your ability to make decisions under drink (pressure) and you will be watched. It is sort of a friendly game…
However, failure might have some nasty consequences in your future relationships with the host. Oh, they’ll take your money, for certain. However, if you want the best attention, the best timing, the best care and concern, then you had best be able to give YOUR best during this period of time.
This is all about relationship building.
A Little Story
I was once asked to be interviewed by a Doctorate student at a UK university about Guangxi. Now, guangxi is the “business relationships” between individuals in China. As is the case with most intelligent students in the university, she had a tremendous amount of book knowledge, but zero personal on-hand experience to put everything in context.
So during the interview, she told me that the way that the Chinese do business is rather “old fashioned”, and “obsolete”. She commented on how possibly could China ever be able to compete against the world using these arcane methods?
Well, after a second or two of thought, I responded. First of all, I told her, China is and will continue to be the, the world’s leader in manufacturing. Perhaps they are doing something right, rather than something “obsolete” and “outdated”.
Second of all, I asked her what the “new and improved” method was to conduct business? She responded that you use the internet to research factories. You compile data on the strengths and weaknesses of each, and then use a comparison matrix to sort out the best factory to work with.
At which point I said… “Yeah that might work… might“.
In reality, the best price will come from a very large and high volume factory. It will be well poised to give new clients competitive pricing, established quality and have the work and industrial environment that you are looking for.
But…
If your order is small, as (after all you are the new “kid on the block”). You will be put on the bottom of the priority list. Much larger, well established clients, will push your orders to the side. Oh yeah, you will eventually get your product, but they will often be late, and it will be you who will have to deal with the consequences to your supply chain.
Building relationships have a purpose.
It is better to have a tight and strong relationship with a small factory, than a nameless and faceless one with a huge factory. As we used to say in America,” it is better to be a big fish in a little pond, than a little fish in a big ocean.”
So, I say to her…
What is the importance of dating? Why don’t you just go immediate to sex when you see an attractive guy? Why do you go through the ritual of coffee, dinner, dance, some wine, a stroll or two and maybe a night cap? Why all the ritual? Why not go straight to the “big event”?
She said, to get the know the person. To prove that that person is worthy of your time, and to see if you are comfortable being with that person.
I responded. That is the same purpose of the Chinese dinner, drink and KTV. Exactly.
Oh Yeah…
While I am at it, if you decline anything…anything… it will affect their opinion of you. This is why many expats, in the business world, take up smoking, drinking and other vices. You cannot afford to lose face. Because nothing will cause a company to lose face more than sending a teetotaler to negotiate contract terms with a Chinese factory.
So, when you are offered a cigar, take it and smoke it. The same is true with cigarettes, (especially the high-test versions that they will give you you…ugh!) and of course… eat what they feed you, drink what they offer you.
If you don’t have the stomach or the constitution for this level of social interaction, then you should be in another line of work. Working with Chinese factories is not for you.
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