There is no way to anticipate or avoid all of the problems of dealing with Chinese businesspeople and bureaucrats, but there are a number of common-sense guidelines, learned the hard way by pioneers in the country. They should help to minimize the problems and significantly enhance the possibilities of success. Here is a list of dos and don'ts that front-line business veterans are quick to share with newcomers:

1. Know you own company and its products inside and out.
2. At the beginning of a relationship with a Chinese company or government bureau make a special point of emphasizing that your own company follows high ethical standards, that you are bound by those standards, and that they specifically prohibit under-the-table payments. In order to make this pill go down a little easier it pays to emphasize how everyone on both sides of the table will benefit from a successful business relationship, appealing to the nationalistic pride of the Chinese. I recommend that this statement of your company's ethical standards be in written form and printed on impressive stationery.
3. Know everythin possible about the Chinese company or agency you are going to be dealing with, including personal details about the managers and executives you will be meeting. If necessary, engage the services of an investigative agency to get behind the facade of the organization. Make sure that whatever investigation is done covers the "corruption rating" of the company or bureau concerned. If you are going to do business in China through an agent, take special pains to ensure that the agent is not one of the many that rely primarily on bribes in dealing with the bureaucracy and suppliers. If you are asked for a bribe, do not show any anger. Apologize sincerely and present a copy of your company's ethical guidelines, adding that if you agree to any kind of unauthorized payment you will be fired. (If you need an escape from this position, you can always agree to try to arrange some kind of authorized consideration.)
4. If you are going to have employees in China, prepare a formal written code of conduct and require that all new employees sign the code as part of their employment contract.
5. Be as informed as possible about current social, economic, and political aspects of China. One of the best ways to accomplish this is to interview other foreign businesspeople who are stationed in China and have been there for several years.
6. Know as much as possible about the Chinese market as it relates to your products and goals. Again, the insight of foreign businesspeople on the scene can be invaluable.
7. Keep in mind that there is a social and political as well as economic content to business in China and that you will have to be knowledgeable enough and flexible enough to adapt to the Chinese environment.
8. Make sure your presentations are specific, comprehensive, and clear.
9. If you are using your own interpreter, make sure you qualify him or her in advance. Also make sure he or she has studied your presentation before your meetings.
10. Prepare summary copies of your presentation, preferably in English and Chinese, and pass them out at the beginning of the meeting.
11. Take an open, friendly, sincere stance in your presentation. Say some nice things about China (but don't overdo it) and about your own country, adding that you believe a successful relationship will contribute to both countries.
12. Be totally honest and frank in your responses to questions, proposals, or criticisms. If anything is amiss, if there is any kind of misunderstanding, cover it immediately. If you let it go by, it will likely come back to haunt you because the Chinese will assume that you approve or have no objections.
13. Exude sincerity and goodwill, but be firm and consistent in making your points and position clear.
14. Do not expect fast agreement from the Chinese side. Do expect a seemingly endless litany of questions, request for more information, and a variety of demands.
15. Be prepared to give a little on some points where you have leeway, but always get something in return.
16. Do not put yourself in a position where you have to have an answer or a contract in three days or any other short-time frame. It also pays to not put all of your eggs inot someone else's basket.
17. Keep in mind that the Chinese are generous in their use of time. They know that in most cases it is on their side and they will take the fullest possible advantage of it. Put yourself in a position where you can be patient and not suffer.
18. Stay friendly, stay firm, stay unflusteres. Let the Chinese know that, if you cannot reach an agreement within a reasonable period of time for any reason beyond their control or your control, you are prepared to do business with someone else.
19. If you do not have powerful connections in China, get some help from friends and or other connections and make them.
20. Emphasize that the relationship must be mutually beneficial - a relatively new concept in Chinese thinking. (The traditional and still generally automatic reaction is that, in any foreign relationship, the Chinese side should benefit first and foremost. Part of this reaction is a holdover from the generations when foreigners were expected to bring gifts to demonstrate friendship and recognition of China as the supreme power. Nowadays, part of it is based on the concept that China's needs take precedence over the foreigner's desire to make what are typically perceived of as excessive profits.)

Excerpted from Chinese Etiquette and Ethics in Business, by Boye Lafayette De Mente Excerpted from Chinese Etiquette and Ethics in Business, by Boye Lafayette De Mente Kuala Lumpur Malaysia at 05:36 PM