As in any culture, there are so many little rules about basic etiquette that is hard to think of where to start.  The average Chinese person will not get angry if you break these rules as long as they know you are new to China (which they will generally assume if you are a foreigner).   However, if you do know these rules they may find it impressive.  The exception to this is foreigners who look Chinese.  These "huaqiao" (overseas Chinese) will not consistently be shown the same slack that other foreigners enjoy.  A typical comment from a Chinese person to a foreigner who appears to be Chinese would be, "You don’t speak Chinese!? But you are Chinese, why can’t you speak it?"

Line Ups / Queues

Chinese people are beginning to take to line ups and/or queues.  In banks and train stations there will be organized queues for the ticket booths and teller windows.  However, in most other places Chinese people prefer to crowd and push rather than line up.  Getting on a bus can be a challenge, because everybody is trying to get on as fast as they can in order to get a seat.

Staring

In some areas, people have not seen many foreigners before and you can expect them to stare at you.  This is just out of curiosity.  They do not mean to offend you.  It’s also common for people on the street to blurt out a loud, giggly “HELLO” to foreigners.

Greetings

A normal way to greet is by saying “ni hao” and giving a handshake.  Saying “hello” would be an acceptable greeting for a foreigner to give too.

Business Cards

Chinese people love to exchange business cards.  Click for a separate article on business cards.

Gifts

If somebody is treating you to dinner or inviting you into their home then it is always nice and courteous to bring a small inexpensive gift. Fresh fruit is a good choice.  Red wine or Chinese baijiu would be appropriate for a more formal occasion.

Spitting

In some cities spitting is very common, while in others it is not seen as often since it is not allowed.

Female Dress Code

You don’t need to worry much about this.  Young Chinese women in modern cities often wear short shorts and tight t-shirts.  Compared to North Americans or Europeans they rarely show their stomachs.  Men are fairly well behaved, but don’t forget about the “staring” point made above, women in particular.

Personal Space

People are used to standing quite close to each other: both with their friends and people they don’t know.  Males will put their arm around other male friends and females will hold hands or link arms with female friends.  Male and female friends do not touch much.

Accepting Cigarettes

If somebody offers you a cigarette they will probably hold out 2 or 3 in their hand.  You should accept the one on the bottom as a sign of respect.  Non-smokers should not worry, as it’s not considered rude to refuse a smoke.