CHINESE NEW YEAR JAN 2014

Chinese New Year is celebrated worldwide to mark the first day of the New Year in the Chinese calendar, which differs from the Gregorian calendar. It is also known as the Spring Festival or the Lunar New Year and celebrations can last for about 15 days.

The Chinese New Year for 2014 is on January 31 and marks the start of the Year of the Horse.

What do people do?

Chinese New Year is the most important and longest of all Chinese festivals, celebrated in Chinese communities worldwide. Chinese New Year activities include:

▪   Making offerings to household deities.

▪   Wearing new clothes, particularly in red.

▪   Hosting a large banquet for family and friends.

▪   Taking part in lion and dragon dances, as well as festive parades featuring acrobatic demonstrations, beating gongs, and clashing cymbals .

Many children receive “lucky money” in red envelopes and household doors are open to let good luck enter on Chinese New Year. Chinese New Year may also include a lantern festival, where people hang decorated lanterns in temples and carry lanterns to an evening parade.

Public life

Chinese New Year is a public holiday in China, which lasts for a few days. It is also a public holiday in countries such as Brunei, Indonesia, Malaysia, North Korea, Singapore, South Korea, and Vietnam.

It is not a public holiday in countries such as Australia, Canada, the United Kingdom or the United States. However, some businesses may close early and some streets may be closed for a short while to allow for festival parades to take place.

Background

The Chinese New Year festival is believed go as far back as prehistory. It marks the start of the new lunar cycle and is called the Spring Festival (in the northern hemisphere) as it falls between the December solstice and the March equinox. China follows the Gregorian calendar for daily business but the dates of the Chinese New Year and other important festivals are determined by the Chinese calendar.

The Chinese New Year, which is the first day of the first month, in the Chinese calendar is assigned to an animal. According to one belief, Buddha promised gifts to all animals that would pay him homage. Only 12 animals came to honor Buddha so, to favor these 12 animals, each one was given one of the 12 years of the Chinese zodiac. People born during one of the animal's years are said to inherit distinctive characteristics of that animal. The signs repeat every 12 years.

The Chinese calendar is based on astronomical observations of the sun's longitude and the moon's phases. It is believed to have been introduced by Emperor Huangdi (or Huang Ti) at some stage around 2600 to 3000 years BCE. According to legend, the emperor invited the calendar in 2637 BCE. This calendar predates the Gregorian calendar, which was introduced in 1582. The Chinese lunar calendar is used to determine festivals, so the dates of these festivals vary each year. Various Chinese communities around the world also use this calendar.

Symbols

Chinese New Year has various symbols and traditions. For example, flowers are an important part of New Year decorations. Two flowers that are often associated with Chinese New Year are the plum blossom (courage and hope) and the water narcissus (good luck and fortune). Writings that refer to good luck are often seen in homes and business environments. They are usually written by brush on a diamond-shaped piece of red paper. Tangerines and oranges are also displayed in many homes and stores as a sign of luck and wealth.

Envelopes with money (Hong Bao, Ang Pao, or Lai See), often come in the color red, which symbolizes happiness, good luck, success and good fortune. The color red is also used on these envelopes to ward off evil spirits. These envelopes are mainly given as presents to children. Each Chinese New Year is associated with an animal name for one of 12 animals in the Chinese zodiac.

THE INTRODUCTION OF 2014 YEAR OF THE HORSE

The Year 2014 is considered as the Year of the Horse as per the Chinese Zodiac Calendar which begins on January 31, 2014, and ends on February 18, 2015. 2014 according to Chinese Astrology Calendar. it is the Year of Wood Horse.  Wood is related to tree or green, so it is also called Year of Green Horse. 2014 is the jiăwŭ (甲午) year.The Chinese zodiac calendar comprises 12 animal signs and horse is the seventh among all of them. In Chinese culture, the Horse is a symbol of nobility, class, speed and perseverance.  People born in the Year of the Horse are smart, fabulous speakers who have a gift for getting through to other people. People bearing the horse sign strive towards seeking freedom and happiness. In general, 2014 would be a better year for those people who were born under The Year of the Horse.

CHINA BECOMES WORLD'S BIGGER TRADING NATION

China's annual trade in goods passed the $4trn  mark for the first time in 2013, official data has revealed, confirming its position as the world's biggest trading nation.

Exports from the world's number two economy rose 7.9% to $2.21trn

Imports increased 7.3% to $1.95trn

The trade surplus stood at $259.75bn up 12.8% from 2012.

Total trade came to $4.16trn, an increase of 7.6%, just below the government's 8% target.

The total was a record high and effectively confirmed a historic geo-economic shift, making China the world's biggest trader of physical goods, not including services.

Further confirmation of the new status is expected to come when full US data for the year is released.

The European Union was China's biggest trading partner, GAC said, followed by the United States, the Association of Southeast Asian Nations (Asean), Hong Kong and Japan.

Between them, the traditional markets of the EU, US and Japan accounted for 33.5% of China's trade, down 1.7%, suggesting emerging markets' share of business was growing.

NEGOCIATING WITH CHINESE PEOPLE

• Due to the vastness of China, different Chinese have varying business styles.  The Cantonese tend to be more Westernized due to the influences of Hong Kong and constant contact with Western traders for hundreds of years. They are more accustomed to doing business with foreigners and are more efficient.  However, Cantonese business people can often be more adamant about having things their own way and so foreigners should be firm about their position in a negotiation. 
• Chinese usually conduct business over lunch and dinner, and deals are often concluded over a meal.  Entertaining is a critical part of Chinese business culture.
• Chinese pay a great deal of attention to details.  Most negotiations are divided into two phases: technical and business issues.  The Chinese will utilize their technical experts to focus on the technical phase until they are satisfied with basic issues or quality and usefulness.  Make sure to include at least one technical expert in your negotiation team. 
• It should be noted that the Chinese often hesitate to provide information out of concern that someone will use it against them.  Use mutual contacts to assist if you are concerned about establishing trust and credibility with your Chinese counterpart, if negotiations stall, or you encounter disagreements.
• Government officials who are responsible for negotiating deals often do not have the authority to commit financial resources.  Be flexible and creative in your approach, but do not lose sight of your business interests.  In many instances, even small changes to existing agreements cannot be made without the approval of senior officials.
• Chinese do not like to say no or to be the bearers of negative news.  They will hint indirectly in the conversation.  Similarly, you will hear a yes response to almost everything.  You should be careful of these empty yes as it may not always draw positive conclusions.  Verify what has been said to you.  It is important that all parties maintain "face".  If you think the answer to an issue is really no, verify your feeling by asking questions that can be answered positively.

Be prepared for tough negotiations.  Adhere to your principles and objectives. Maintain a quiet and dignified manner.  If problems develop, you should be firm about your limits and your willingness to work with your counterparts to find a mutually agreeable solution.

BUSINESS MEETINGS IN CHINA

• Chinese usually greet one another with a slight bow or nod of the head.  In business and with foreigners, a handshake is common upon greeting and departure.
• Arriving early indicates respect for the host.  Although the Chinese are not always on time, punctuality is viewed as a positive asset in others.
• Chinese pride themselves on holding their feelings inside, therefore, they may not smile at a first greeting or as often as people do in some other Asian countries.
• Business cards, called name cards (ming pianr) by the Chinese, are presented when everyone first meets.  They should be given and received with both hands. 
• It is advisable to hire a translator.
• Chinese have a high regard for rank and seniority.  The Chinese will be impressed by and are usually more attentive to senior representatives of foreign firms.  Ranking your company can help to impress the Chinese, especially if you are the biggest or the oldest.
• In China, the family name precedes the given name, which is occasionally followed by the second name or the western equivalent of a first name.  For example, Huang Hua would be called Mr. Huang, and Hua would be his given name.  However, some Chinese will switch the order of their names when they are dealing with foreigners.  Further, many Chinese adopt given names, many of which are Western names. 
• It is important to establish a smooth business relationship and friendship.  Trust and cooperation are key.   Meetings often begin with small talk over tea, and appropriate topics include the weather and your recent travels. Then, will be built on to more serious topics.  It is important to be patient.  The Chinese tend to maintain a level of formality in the early stages of a relationship.  This fosters respect for each side and ensures that contacts will proceed harmoniously.  To become informal too quickly would upset the balance the Chinese require to develop a meaningful business and personal relationship. Avoid discussing political and human rights issues.  These topics can be very sensitive and may place your Chinese counterpart in an awkward position because Chinese people are not allowed to publicly criticize the government.

Gift are not required or expected at initial meetings.  You may present a small sample of your company's product or an item with a corporate logo.  However, anything more elaborate or expensive will be inappropriate.