This may be a critical question when asked at a meeting taking place in the senior manager’s office in China. Here the invitation to drink tea is much more important, particularly if it’s centred around an elaborate and exquisitely carved tea table, which is often an integral part of a senior manager’s office. 

Many of my most important business conversations started not with drinks and not with a meal, but with a cup of tea. These were often discussions initiated by the China side. If discussions proceeded well, then an invitation to a meal followed. 

Drinking tea in Japan has a ritual and ceremonial structure. In China, it’s less formal, more relaxed, and pays greater attention to the quality of the tea than to the ceremony associated with tea drinking. 

That’s not to say it’s a slapdash approach in China. There are important courtesies involved in more formal tea occasions, such as you might experience in a CEO’s office in Beijing. 

Meeting in the senior manager’s office you are usually invited to be seated on a large sofa or armchair clustered around the tea table adorned with small cups, perhaps a purple clay teapot, a temperature-controlled jug and other implements. 

At first, it feels very ceremonial but it’s actually very strategic. Tea creates space for curiosity, for conversation, rather than pressure. This is where relationships begin because it builds trust between you as a guest and a potential partner. The tea table becomes a platform for an authentic connection and not just the numbers of a business arrangement. 

The invitation to drink tea in this environment signals sincerity. When a Chinese counterpart personally serves you tea, it’s not some small talk. This is serious business hospitality, so it’s worth being prepared, rather than surprised, by this apparently casual invitation. 

Do some research so you know the basics of tea varieties found in China. These are white, green, yellow, oolong, black and post-fermented pu-erh teas. Within these categories, like the varieties of wine, are teas of exceptional quality. You give your host, and yourself, face by showing at least a passing knowledge of the varietals 

If you are able, comment on the colour – particularly the deep ruby red of high quality pu-erh – the aroma and the taste of the tea will show you have some understanding of the inevitably high quality of the tea being served. Your counterpart will also appreciate your knowledge. It provides a great start to long-term business relationships. 

Decoding Chinese courtesy responses is an important feature of business success. Some are simple courtesy compliments, similar to describing a person as “cool” – a popular Chinese idiom, which was misunderstood by Australian media when it used the literal translation of “handsome boy”. 

Other polite responses are designed to defuse conflict. 

Some 20 years ago, an Australian mining millionaire emerged from a meeting with Chinese investment partners announcing that an agreement had been reached. The Chinese partners responded, saying that an agreement had been reached to discuss things further. In Australia, some 20 years later the details were still being played out in court battles. 

News reports often have President Trump claiming a China deal is a “total reset” of the trade relationship. The Chinese side says” “The meeting achieved substantial progress, and reached important consensus. The two sides agreed on establishing a consultation mechanism for trade and economic issues.” 

Not quite matching the “trade deal, total reset” headlines coming from the White House. 

We may not be operating at the heights of diplomatic trade deals, nor be involved in negotiating multi-million dollar deals with China, but if we are doing anything more than basic business in China then we need to be aware of these cross-cultural hurdles. 

Better listening and understanding of what is said is an essential skill in any business discussion . 

In meetings it’s very easy to assume you have agreement and understanding when in fact there is no agreement and no understanding. People on both sides of the table have a tendency to nod their heads in agreement even if they do not fully understand what has been said. 

It’s essential to use a confirmation technique to ensure key points have been understood. This means rephrasing the question so the original answer is confirmed. The Chinese side will use this method frequently and it drives many Westerners to distraction. 

Westerners complain “we have already covered this area and agreed’ not realising this is the Chinese side reconfirming their understanding is correct. 

Take this simple statement: “The project must be completed by March 15.” And the reply: “OK. We will do our best.” 

Do you have confidence the deadline has been understood? Probably not. Do not ask for the conclusion to be repeated back to you as this implies a loss of face. Reframe the original question. 

Do you see any problems with the March 15 deadline? Are there any other factors or projects that might influence your ability to finish this project on March 15? Is the March 15 deadline convenient? Do we need to talk to anyone else or organisation about this March 15 deadline? 

The answers to these supplementary questions achieve two things. First, the answers confirm the correct understanding of the original question. Second, the different approaches used in the supplementary questions may reveal problems that would not otherwise have been mentioned. This may include the need to get approval from another person, department or authority. 

By inviting people to let you know the March 15 deadline is inconvenient you give them the opportunity to say this without losing face. If it’s inconvenient then you can be certain the March 15 deadline would not be achieved despite everybody doing their best. 

Next time you are offered tea in China make sure you don’t say “No thanks. A coffee or water if you have it.” But also remember that sometimes tea is just tea. 

Daryl Guppy is an international financial technical analysis expert. He has provided weekly Shanghai Index analysis for mainland Chinese media for more than a decade. Guppy appears regularly on CNBC Asia and is known as “The Chart Man”. He is a former national board member of the Australia China Business Council. The views expressed here are his own.