No one can predict what will happen during the operation of a business, so crisis preparation is quite important. Chinese business professionals use many of the same techniques Westerners do, such as hiring consultants or experts, but another common method is building guanxi by gift giving. Giving gifts to the right people can help solve, or even avoid any crisis.

In Chinese there's a saying, “以理服人 yi3 li3 fu2 ren2,” loosely translated, “to persuade others by reasoning.” The Chinese word for “reason (理) has the same pronunciation as “gift” (礼), so there's a similar expression, “yi3 li3 fu2 ren2,” that means “to persuade others by giving gifts.” So giving gifts is a way for individuals to gain benefits for themselves and for businesses to acquire and maintain advantageous relationships. The idea is to not just network passively until a problem arises, but to actively build the network – through giving gifts to individuals or companies you have cooperated with and trust – before that relationship becomes obviously useful to you. Gift giving in this type of relationship should not be confused with bribery or duress, because it is voluntary and reciprocal, it is a culture in which you expect to receive gifts as well as give them. At present, in the Chinese business environment, a knowledge of the customs of gifts is important in order to get past cultural obstacles and achieve true success.

What to give
Choosing suitable gifts to send, and what's more, interpreting the underlying meaning of gifts which are received, can be a huge challenge for a foreign business in China. In the West, companies often regard business gifts as a kind of advertising or a promotional tool, so they will give out samples of their own products as a way of expressing thanks. Not so in China. Common Chinese business gifts are usually classical representatives of Chinese culture, such as jade, crystal or rosewood, and most of them are decorations. So called “national gifts” represent the highest relationship and honor. Good examples of these are high-quality Chinese porcelain, elaborate, handmade silk tapestries, or any other type of traditional, high-quality Chinese craft. For example, after the 2007 China-Africa Summit in Beijing, President Hu Jin Tao gave a “China Red” vase to African leaders. Chinese people are proud of their traditions and history, so it is easy to understand why these gifts have such a high status in Chinese eyes.

The understanding of gift giving is different in China than it is in the West. Gifts are regarded as a tangible expression of emotion, so giving them becomes a transfer of that emotion. The more valuable the gift you give, the higher the emotional content and the more respect you're showing to the recipient. But also keep in mind that very expensive gifts can indicate that you expect to receive a lot of favors in return.

Therefore an international company doing business in China should consider carefully which gifts to bring. Foreign products are highly regarded in China, so it is wise to choose something made in America or Europe. If possible, bring a gift with a distinctive link to your home country, for example a Canadian could bring maple syrup or a Scot might present a Celtic brooch. Other good choices are ornaments, pens or business card holders made in your home country. It would be fitting to give gifts that are gold or red, as these colors have favorable meanings in Chinese culture. Gifts for higher ranking officials could be accented with gold letters or decorations to show extra respect.

What not to give
You should never give a clock to your Chinese partners, however valuable or weighty it might be, because the Chinese word for “clock” is very similar to “end”, so the gift will be interpreted as a wish that the recipient company's business will end.It is also best to avoid sharp objects: a gift such as a knife might be seen as an indication of treachery. Similarly, giving umbrellas as gifts is impolite. The Chinese pronunciation for the word “umbrella” is similar to the word “apart”. Never give a company a gift related to bears because in Chinese the expression to describe a decline in the exchange market is the ‘bear phenomenon’. In contrast to Western cultures, the color white is symbolic of death so it may be best to avoid this color when choosing a gift.

Who to give to
Top managers are always busy solving internal problems and building external networks. They tend to focus on building relationships with bosses or top managers in companies with similar interests, clients, dealers, and suppliers. Different companies compete with each other to give the most valuable gifts in order to gain more clients, benefits and profits from potential partners. In other words, managers give gifts to show appreciation to those that might help them gain an edge.

How to give gifts
Gifts can be given in business or informal contexts, but either way they should be packaged well to show respect to the recipient. In business, the recommended time to give gifts is right after a conference. Pass the gift to the recipient with both hands. If the gift is too big to give this way, send it through other channels with an explanation. It's also very important to pay attention to what order you give gifts in. Give first to elders then juniors, first to women then men, first to superiors then inferiors. It is likely that a gift might be refused at first to show modesty and humility, if this happens persist gently. Opening a present in front of the giver might also be judged as showing greed. Remember this when receiving gifts too, try not to accept too quickly or open it straight away as this might appear impolite.

What you should know
The weight of gifts - The weight of a gift correlates directly with its importance to the giver. If a gift is heavy, the recipient knows that he/she is important to the giver. If the gift is too light, the recipient may feel slighted or ignored. When the time comes that the giver needs a favor, the recipient may not be as helpful as he might otherwise have been. So the weight of a gift should be balanced against the weight of future favors you might seek.

The frequency of giving - Birthdays, festivals, anniversaries, and holidays are good opportunities to give gifts. Giving gifts too often outside of these appropriate occasions would not be circumspect.

The expression of your gift - Knowing what the recipient of your gift might need can add to the gift's emotional value. A gift that shows a great deal of thought can be much more valuable than an expensive one.

Be careful to express explicitly the purpose of gift -- thanks, favor request, network building or something else – or your effort may go to waste. According to Confucian philosophy, the relationship between honorable men should be ‘as transparent as water’.

Resources
1. Effective ways to cultivate Guanxi
2. http://baike.baidu.com/view/200573.htm
3. http://www.chinaredv.com/news/read.asp?id=245m
4. http://image.baidu.com
5. http://bbs.phoenixol.com

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