Lavish gift-giving was once an important part of Chinese culture. Today, official policy forbids gift-giving as it can be considered bribery. Though the policy is softening, there may be times when a gift will absolutely not be accepted. Should you find yourself in this situation, graciously say you understand and withdraw the gift. Smaller, less expensive items will not be seen as a bribe, but in any case, you will have to approach gift-giving with discretion.
The Chinese do not usually accept a gift, invitation or favor when it is first presented, but will politely refuse two or three times to reflect modesty and humility. Accepting something in haste makes a person look aggressive and greedy, as does opening it in front of the giver.
When or if a gift is given, it should be offered with two hands. Any gift offered with two hands should always be received with two hands.
It's traditional to bring a gift when invited to someone's home. Fresh flowers or fruit are your best bet, and it is a good idea to bring eight, rather than the typical Western dozen. Eight is a lucky number. The more expensive the gift, the more respectful, but don't go over the top or you will embarrass your hosts, who may feel the need to go out of their way to return your generosity. It is likely that your gift will not be opened in front of you as your hosts do not want to appear greedy or ungrateful.
Be sure to be fair with your gift-giving: don't give something nicer to the secretary in the office than to the dean of the college, and don't give gifts to one group of students and not another - they will find out. Often, it's better to give something that can be shared, like food.