Gift-giving and hospitality are time-honored traditions within mainland Chinese culture and still play a significant role in cultivating relationships, showing respect and appreciation. However, gift-giving in a business context is usually more nuanced due to the emphasis that Chinese place on hierarchy/social status and concerns about how actions reflect on themselves. Today’s more stringent anti-bribery enforcement climate also complicates business gift-giving in China.

What follows are some guidelines on gift-giving etiquette in Chinese business culture.

General

• Chinese place great emphasis on symbols and symbolic associations which may not be readily apparent to non-Chinese. Care must be taken in choosing gift items which are regarded as having symbolic significance.
• Give gifts to key business executives you visit, as a way to thank them for meeting you.
• Gifts exchanged in the context of an ongoing negotiation are acceptable but wait until avoid negotiations are finalized before giving gifts to avoid giving the impression that the gift is given for the purpose of influencing the outcome of negotiations.
• Colors carry great symbolism in China. Limit color of wrappings to Red, Gold, Silver and Pink. Colors such as white, blue, black or yellow wrapping with black text printed on should be avoided. To avoid wrapping being torn or creased from travel, wait until you arrive in China before wrapping the item. Speak with hotel staff about nearby gift-wrapping services.
• If giving multiple items, avoid giving 4 of any items as Chinese associate the number with death. The number 6 (六) sounds similar to the character for ‘flow’ (流), which indicates fluidity and that everything will go smoothly. The number 8 is considered the most auspicious number for the Chinese, mostly because the word ‘eight’ (八) in Chinese somewhat resembles the word for ‘prosperity’ or ‘wealth’ (发). A gift of either 6 or 8 items will be appreciated.

What to Give as Gifts

The ideal gift need not be big or expensive. It should, however, be something that the recipient will appreciate. Keep the following tips in mind:

• A gift that represents where you are from or an item which is not accessible in China will usually be highly appreciated.
• Avoid giving any gift that may regarded as extravagant as this may place undue pressure on the recipient to reciprocate. Reciprocity is a very important facet of Chinese culture and if the recipient feels unable to reciprocate, he/she will usually refuse to accept the gift offered.
• The more practical the gift, the better, as it will serve as an oft-used reminder of you and your thoughtfulness.

Suggested Gift Items

• A bottle of good or very good wine, cognac or scotch whiskey since apart from the material value these represent, they also symbolize a toast to the good health of the recipient so regarded as very sincere
• A fine pen
• Memorabilia of a sports team near your company’s operations (a jersey with name printed – be careful with the colors)
• A coffee table book on symbolic moments in your country’s history or on wildlife, landscapes or art culture
• Good quality foreign cigarettes or cigars if the intended recipient is a smoker
• A small basket of apples is a popular tradition in China is to give apples especially on Christmas Eve. This is because Christmas Eve is called ‘Ping An Ye’ (平安夜), which sounds similar to the word for apple, and literally translates to ‘Peaceful, Silent Night’
• A leather wallet or other practical local handicraft especially if handcrafted in the country, region or city you are from

Items to avoid giving

• The word for ‘Shoes’in Chinese (鞋) sounds a bit like the Chinese word for ‘evil’‘heretical’(邪). It also giving them the tools to ‘walk away’and could be misinterpreted as you wanting to part ways, thus ending your relationship
• Avoid giving umbrellas, scissors, handkerchiefs or pens containing red ink and avoid signing cards with red ink.
• While most Chinese people would welcome receiving most fruit, especially apples, don’t give pears because the Chinese word for ‘pear’ (梨) sounds the same as ‘to separate’ or ‘to part from’ (离) and might imply that you hope the recipient’s family will separate (through death or divorce).
• Flowers are generally fine but if you decide to give these, avoid white ones, especially Chrysanthemums, which are only used when visiting graves or during funerals.
• The Chinese word for ‘four’ (四) sounds similar to the character for ‘death’ (死) so avoid giving any item in a set of four.

Proper Etiquette for Giving a Gift

Chinese people believe that the manner in which a gift is given is sometimes worth more than the gift. The most common gift-giving faux pas can be avoided by following the tips below:

• Hierarchy is a treasured concept in China, with people at the higher levels of social strata receiving a great amount of deference. When making a gift to a company or to a group of people within a company, present it to the most senior ranking person in the room.
• In general, to avoid possible embarrassment, give the same type of gift to recipients at the same level within their organization.
• Giving a gift to an individual as a gesture of friendship rather than as a token of appreciation to the group that the recipient represents is usually best done in private.
• Chinese people are typically reserved and your gift is likely to be received with a reserved demeanor particularly if you give it in the presence of the recipient’s staff. Do not take this is a lack of enthusiasm for the gift; the recipient simply does not want to be cast as greedy.
• To avoid appearing greedy, the recipient may decline the gift the first time it is offered. Persist and ask again. It is customary for a gift to be declined up to 3 times before it is accepted so be prepared for this. If the gift has been absolutely refused, do not press on but politely acknowledge the refusal.
• Gifts are usually not unwrapped when they are received so do not be offended if the recipient does not open the gift in front of you. Chinese people do not usually open a gift in front of the giver to avoid possible embarrassment. Instead, a recipient will open it later and then call or write to thank the giver.
• Once the gift is accepted, express your gratitude that they have accepted the gift and proceed from there.
• Wrap gifts well and ensure that the wrapping is presentable before giving a gift. Never present a gift in the store bag the gift was purchased from.
• When presenting a gift, offer it facing the correct way to the recipient and do so with both hands. It signifies that respect and care has been taken. This is similar to the process of exchanging business cards.
• Unless the occasion is symbolic, do not photograph the gift-giving.

Proper Etiquette for Receiving a Gift

The procedure for receiving a gift is similar to that for giving one. Please note:

• You may be expected to initially decline the gift, 3 times customarily, before eventually accepting it and expressing your gratitude.
• When you do accept the gift, take it with both hands. As earlier noted, it symbolizes respect and gratitude for the gift and the thoughtfulness of the person giving it.
• Chinese people who have had previous contact with Americans or other Westerners may expect you to follow the American custom of opening the gift when it is received (ie: in front of the person giving). To avoid confusion, you can always ask, “Would you like me to open this now?
• Call or send a thank-you note. And, if possible, bring a gift of roughly similar value to give the giver on a subsequent occasion.

China’s long-awaited new National Standards on Information Security Technology – Personal Information Security Specification GB/T 35273-2017 (the “Regulations”) came into force on May 1, 2018. The Regulations are arguably China’s most important personal data protection rules, representing new standards for the handling of personal data.

The Regulations supplement rather than abrogate China’s existing patchwork of data protection laws and regulations. Although the Regulations themselves are not legally binding, they dovetail with China’s 2017 Cybersecurity Law and Consumer Protection Law which are binding. Furthermore, over the coming months, regulators will be pressing for compliance with the Regulations, so organisations operating in China are strongly advised to review and update their China data protection policies and practices to reflect the new standards.

Summary of Key Features

Clarification of key data protection conceapts and definitions
Personal data is defined as either “personal information” or “sensitive personal information” with the latter subject to more stringent data protection (eg: all personal information of persons under 14 years of age is categorized as “sensitive personal information”).
Explicit consent is required for collection of sensitive personal information or use of personal information for any new purpose.
Inclusion of certain prescribed information in all privacy notices, including but not limited to (for business use) personal information collection and processing rules such as the collection method and frequency, place of storage, and frequency of collection; if data is shared, disclosed or transferred, the types of data involved, the types of the data recipients, and rights and obligations of each party; data subject rights, and complaint handling; security principles followed, and security measures implemented.
Personal information security impact assessments are required for: (i) outsourcing of data processing; (ii) sharing and transfer of personal information; or (iii) disclosing personal information to public.
All personal information collected/produced in China and transferred to or shared with offshore parties requires a security assessment and all such assessments must be conducted in accordance with yet-to-be-released official standards and procedures.
All requests for access to, correction of, copies and deletion of personal information, and withdrawal of consent must be responded to within 30 days, and there should be no charge for any reasonable request unless repeated requests are made within a certain period of time.
New standards and procedures for effective data protection that organisations need to comply with and include: (i) drafting, implementing and updating privacy policies and corresponding procedures; (ii) privacy training; (iii) security impact assessments and audits.
Organisations must appoint a data protection officer and a dedicated data security team to be directly responsible for the protection of personal information.
Data breach notifications: a specific incident response plan is required together with periodic reviews and rehearsals and organisations must keep a record of incidents detailing the scope of such breaches.
Periodic data protection impact assessments which must be carried out at least annually.
 

OLN Insights

The Regulations do not bring China’s data protection framework as close to GDPR standards as some commentators have predicted but they are an unmistakable sign both that the PRC government takes data protection seriously and is moving towards adopting international best practices in this space. This will be welcomed by international businesses currently undertaking GDPR compliance reviews and who are now turning their attention to their China practices. Nevertheless, clear local distinctions (notably regarding data localisation, the requirement for consent, and restrictions on handling of non-personal data) remain in China and must be specifically addressed.

Over the course of the next year or so, we should see new and updated national standards promulgated to cover key areas such as data anonymisation, handling of big data, overseas data transfers, and diverse aspects of information security. Some of these implementing standards will simply adapt existing ISO standards.

We are continuing to monitor regulatory developments in this space and will report as and when they occur. In the meantime, organisations with data exposure to China need to appreciate that enforcement action in the data protection sphere is already a reality in China and as this regulatory and enforcement framework continues to evolve, they need to take steps now to review and update their compliance programmes to ensure these comply with the Regulations.