In Yiwu, a global small commodity trading center, business rules are not only established in contract terms, but also deeply rooted in Chinese culture and interpersonal relationships. If foreign buyers ignore local cultural customs, even if they hold orders, cooperation may be hindered due to details being overlooked. Here are some key taboos and coping suggestions:
Taboo 1: Publicly questioning the integrity of suppliers
-Typical wrong behavior:
‘Is your factory deceiving me? Other companies offer lower prices!’
-Cultural interpretation:
Challenging integrity in person can make the other party feel humiliated. The Yiwu business community values “face”, and open conflict may lead to the termination of cooperation.
-Alternative solution:
We attach great importance to this cooperation, but our budget is limited. Can we provide a more optimized solution
Taboo 2: Neglecting the etiquette of meeting for the first time
-Typical wrong behavior:
Go straight to negotiate the price and refuse the tea or business card offered by the other party.
-Cultural interpretation:
Offering tea is a ceremony to express respect, not accepting tea implies distrust; A business card needs to be taken with both hands and briefly read, and casually stuffed into a pocket may appear disrespectful.
-Alternative solution:
Prepare bilingual business cards, smile and thank you when receiving tea, and praise the prosperity of Yiwu market or factory scale during greetings.
Taboo 3: Saying “no” directly during negotiations
-Typical wrong behavior:
‘This price is absolutely impossible! We don’t accept it!’
-Cultural interpretation:
Directly denying is often seen as provocation, and Yiwu merchants are accustomed to “gradual compromise”.
-Alternative solution:
This price is very challenging for us. If the MOQ (Minimum Order Quantity) is reduced by 20%, we may be able to gain support from headquarters
Taboo 4: Neglecting the Importance of ‘Relationships’
-Typical wrong behavior:
Only discussing a single transaction, without caring about the supplier’s family or business situation.
-Cultural interpretation:
Long term cooperation is built on personal relationships, and caring for each other appropriately can enhance trust.
-Alternative solution:
When chatting, he said: “Recently, there have been a lot of people in Yiwu, are you successful in participating in the exhibition?” or send blessings on festivals (such as Spring Festival and Mid-Autumn Festival).
Taboo 5: Urge orders before and after the Spring Festival
-Typical wrong behavior:
Urgent production is required one week before the Spring Festival, or frequent expediting is required before the Yuanxiao (Filled round balls made of glutinous rice-flour for Lantern Festival) Festival.
-Cultural interpretation:
The Spring Festival is the core holiday for family reunion, and factories usually shut down for 15-30 days. After the holiday, workers need time to return to work and resume production capacity.
-Alternative solution:
Place an order 3 months in advance, confirm the production plan before the Spring Festival, and proactively inquire about the progress of resuming work after the holiday.
Taboo 6: Publicly comparing prices of competitors
-Typical wrong behavior:
‘The quotation from XX factory is 30% lower than yours, you can take care of it.’
-Cultural interpretation:
The Yiwu supplier circle is tight, and this move may anger the other party and affect the industry reputation.
-Alternative solution:
We have received some different quotations and hope that your company can provide a more competitive solution
Taboo 7: Ignoring the weight of “verbal promises”
-Typical wrong behavior:
At the dinner party, I promised to cooperate with you next time, but there was no follow-up afterwards.
-Cultural interpretation:
Although verbal promises made at business banquets have no legal effect, dishonesty can lead to damage to reputation.
-Alternative solution:
If it cannot be fulfilled, please explain later: “Thank you for our last communication. Currently, the project is on hold due to budget adjustments