Do (Know)

    * The best time to exchange gift is at the beginning of the event, because you want to establish a bond as soon as possible.
    * Watch and wallet are very acceptable gifts. (Very popular)
    * Other excellent choices of gifts are pen, coin collection, music, some chocolate, and even some whiskey.

Don't

    * Do not give anything expensive such as diamond watches and luxury goods.
    * Stay away from cash.
    * Try not to buy a gift for an individual but for the organization as a whole.

This section is very small due to the fact that giving gifts in business is 90% the same as giving gifts to "Family and Friends." Technically, there is only one concern you need to worry about.

The most dangerous thing you can come across is if your gift turns into a bribe. In China, bribery is such a big problem that even its own people cannot deny it. It has been said that the locals tend to give "Gifts" to government officials for some favored treatment in the future. These gifts include anything from diamond watches, expensive luxury goods, or even straight out cash.

Recently, there was a concern with official corruption in the domestic coal industry. Coal makes up about 70% of Chinese energy; because of this, there are a lot of competitors fighting for their own market share. Many companies turn to bribery to speed up the process, such as getting a license for business, passing a safety inspection, or covering up accidents.

Due to the lack of safety, over 5000 people died in the year 2006 due to collapsing mines. As result, 4500 officials were arrested for bribery. If you would like to know more about this incident then you might want to read page 73 of "An American's Guide to Doing Business in China" by Mike Saxon. 

A best way to avoid this is to buy gifts for everyone who is involved in the transaction, presenting them during the day of the event. Never buy a gift for just one individual. When buying gifts just remember, the quality of the gift should reflect the rank of the person.

For business people, the best time to exchange gift is at the beginning of the occasion because it shows that you have established a bond right from the start. When giving gifts, instead of try to go for expensive things, you should try to find some symbolic items and present them as gifts.

Some gifts that are good to give include pens, coin collections, music, some chocolate, and even some whiskey. For business, a watch (not a clock) can be an acceptable gift, and a wallet is very popular as well. However, do try to stay away from cash.

If I have some more information I will add on later, for now, this should keep you out of trouble. Thank you for your support and good night.