When combined, 公章 (gōngzhāng) literally translates to “official seal,” perfectly describing its function as the authorized stamp of a public or corporate body.
The concept of the 公章 is one of the most significant cultural and legal differences between China and the West. In Western business culture, authority is typically vested in individuals. The signature of a CEO or authorized director legally binds the company. The power follows the person. In China, authority is traditionally vested in the institution itself, and the 公章 is the physical embodiment of that institution's power. The power follows the stamp. This reflects a more collectivist mindset where the organization's legitimacy is paramount. A document is approved by “the company,” not just by “the CEO.” This has profound practical implications. The person who physically controls the 公章 holds immense power, as they can authorize documents on behalf of the entire company. For this reason, the 公章 is guarded with extreme care. Losing the company chop is a major corporate crisis, far more serious than a CEO losing their favorite pen. For any foreigner doing business in China, seeing the official red 公章 stamped on a contract provides a level of security that a mere signature cannot.
The 公章 is used in virtually every formal aspect of a company's operations. You cannot run a legitimate business in China without one.
The act of stamping is called 盖章 (gàizhāng). You will frequently hear the phrase `盖个章 (gài ge zhāng)` - “give it a stamp.”