The host and chief guest sit on opposite sides of the table, facing each other. The chief guest is seated at the head of the room, facing the door; the host with his or her back to the door. In most restaurant arrangements, the host is also closest to the door thus in a better position to give orders to the waiters as they come and go.

Other guests are seated to the left and right of the chief guest in descending order of rank or importance. This means that the two lowest ranking members in the party may end up seated to the immediate right and left of the host. This arrangement is just opposite of what Westerners might expect.

The thinking behind the Chinese-style seating arrangement is simple and logical. It assures that the host will have a direct view of the main guest and only slightly oblique views of other guest of importance.

This article by Yang Tianqing and Daniel Kister.