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Added July 8, 1998TAIWAN
LANGUAGE
* The official language of Taiwan is Mandarin. All children study Mandarin at school but this is not necessarily the language spoken at home. The most widely spoken language in Taiwan is Taiwanese and it is not uncommon for older Taiwanese people to have difficulty speaking Mandarin.
* Taiwan was occupied by Japan until 1945 and Japanese is still spoken, particularly by older people.
* Although most people have studied English at school, it is not widely understood. Young, educated business people, however, usually have no difficulty communicating in English.
BUSINESS ATTIRE
* A suit is the most appropriate attire for conducting business in Taiwan. In less formal situations, smart trousers and a shirt and tie for men, and a skirt and blouse for women may suffice.
* The important thing is to always present yourself well. Taiwanese people place a great deal of emphasis on appearance.
INTRODUCTIONS
* First impressions are very important when dealing with Chinese people and a great deal of emphasis is placed upon the way a person conducts themself at the first meeting.
* The use of business cards is extremely important when conducting business in Taiwan. Always carry a large supply of cards and distribute them whenever possible. Bilingual cards, printed in both English and Chinese are very useful.
* Always use both hands when receiving and distributing cards as this is interpreted as a sign of respect.
* When handing out business cards it is important to give your attention solely to the person receiving your card. When distributing cards to several people, don't be tempted to rush like a croupier dealing playing cards at a casino.
* When receiving cards, always study the card for several seconds. This shows how much importance you place on the status of the person who has given you their card.
* Never write on the back of a person's card or place it immediately into your pocket or wallet, as this would cause the other person to lose face.
* Many Chinese business people use English first names when conducting business with
foreigners. If you are uncertain how to address a Chinese person, simply refer to them by
their surname prefixed with "Mr," "Mrs," or "Miss."
Chinese names are usually three syllables long, with the surname preceding the
given names. Hence Taiwan's President Lee Teng-hui would be referred to as "President
Lee" or "Mr Lee."
FACE
* It is vital that all foreigners conducting business with Chinese people understand the importance of "face."
* "Face" roughly equates to western concepts of status and respect. Chinese people regard the respect of their peers and colleagues as a matter of utmost importance. Conversely, to be humiliated or embarrassed in public is to be regarded with great shame.
* Matters which foreigners may regard as funny may be a source of great humiliation to a Chinese person and it is therefore always necessary for foreigners to be conscious of the public image of the person they deal with. Face, in a nutshell, is merely a matter of good manners.
* Difficult situations should always be handled delicately and without showing anger, no matter how frustrated you feel.
* Never raise your voice, as this would cause the person you are angry with to lose face and break down the negotiating process. To shout at a Chinese person in public, correct them in front of their peers or raise your voice in public would cause them to lose face and ultimately will not advance your cause at all. Try to avoid situations which place a Chinese person on the spot.
* One of the most common ways for a Chinese person to gain face is to spend vast sums of money on food and entertainment. Often this will be done to impress a foreign business associate or work colleagues. If you are taken out to dinner by Chinese people, always compliment your host on his/her choice of restaurant, the quality of food and entertainment, even if they personally criticise these things. This will give them face in the eyes of the other people at the table.
GUANXI
* "Guanxi" means connections. It is virtually impossible to conduct business in Taiwan without first establishing a network of connections.
* Chinese business is usually conducted on the basis of personal relationships which have been built up over time which are mutually beneficial to both parties. In many respects, these relationships are more binding than a legal contract and, Chinese deals are often arranged verbally without reducing anything to writing.
* Essentially, to have "guanxi" means to have a network of useful contacts bound by personal obligation to assist you. It also means you must assist these contacts if called upon.
* To have "guanxi" or a contact in an organisation, business or government department can open doors to foreigners conducting business in Taiwan or China.
FOOD AND ENTERTAINMENT
* Dining out is important in establishing guanxi. Chinese business negotiations are often conducted over a long banquet at which large quantities of alcohol are consumed.
* Karaoke is a popular form of entertainment for Chinese people and foreign business guests are often encouraged to participate.
BUSINESS HOURS
* Business hours are from 8 or 8.30am until 5.30pm from Monday to Friday and from 8.30am until 12 noon on Saturdays. Most businesses close for lunch between 12 noon and 1.30pm.
* Banks are open from 9am until 3.30pm from Monday to Friday and until midday on Saturdays.
* Public holidays are scattered throughout the year, with the main holiday for Chinese New Year held on the first day of the first new moon of the year, usually around late January or early February. It is best to avoid trying to conduct business in Taiwan at this time of the year.
MONEY
* Taiwan has a modern banking system and it is not difficult to change most foreign currencies and travellers cheques in major cities. Advances on credit cards can also be obtained with a minimum of fuss.
* The official unit of currency in Taiwan is the New Taiwan dollar (NT$).
POST AND TELECOMMUNICATIONS
* Taiwan has a modern postal system, with post offices operating between 8am and 5pm Monday to Saturday.
* Local telephone calls cost NT$1 for three minutes. International calls can be made using coins or a telephone card (sold at convenience stores) at ISD phones all over the island.
INTERNATIONAL AIRPORT
* Taipei's Chiang Kai-shek International Airport is located approximately one hour from Taipei, but the journey can take longer during rush hour. Limousine buses run from the terminal to downtown Taipei every 15 minutes and a taxi rank is located outside the arrival hall.
GIFTS
* For information concerning the giving and receiving of gifts in Taiwan, refer to the China chapter in this guide.
* Be aware that according to Taiwan*s anti-corruption laws, civil servants must declare all gifts they receive. Recently, the government also commenced monitoring gifts given to business people, in a bid to stamp out bribery and corruption. When purchasing a gift for a Taiwanese friend, try not to select gifts which are too expensive.
GENERAL
* Never write notes using red ink as this can imply that the writer will die soon.
* When setting down chopsticks between courses, never place them in the rice bowl vertically or at an angle as this resembles sticks of incense burned at a funeral and is considered highly inauspicious. Always lie chopsticks horizontally across the rim of the bowl.
* Chinese people are superstitious about the number four, which signifies death and should be avoided at all costs.
* Avoid discussions which may cause embarrassment, such as death, divorce and politics.
* Be prepared to answer personal questions relating to your age, marital status, income and family background.
* Always show respect for elderly business associates, even those who no longer hold influential positions within the companies you are dealing with.
* Chinese decision-making can take time, try not to aggressively push for a decision to be made on the spot.
* Try to follow up all meetings with a letter and maintain contact with all clients and associates every few months. This will preserve your network of contacts and make business run more smoothly in the future.
* The more Chinese-script written information you can provide your business contacts, the better. Often the people you deal with will be the ones who speak English, but this does not necessarily mean that they are the ones who make the decisions in the organisation. If you have written information for the decision-makers, this may make them feel more comfortable when dealing with your company.
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Added July 8, 1998