Drinking Etiquette in Nanshan, Yantai, China.
A group of people go to dinner and sit around a round table. There are usually four hosts. The most important host (and the person paying the bill at the end of the night) sits at the end of the table. Host #2 (numbered according to importance) sits at the opposite end. Hosts #3 and #4 sits at the left and right of the table, respectively. The guests fill out the space between the hosts, with the most important guest sitting on the right-hand side of host #1, the second most important guest sitting on the left-hand side of host #1, the third most important guest sitting on the right-hand side of host #2, and the fourth most important guest sitting on the left-hand side of host #2.
Once the meal is on the table, host #1 starts by making a speech. Throughout the speech, he will pause to make toasts. Example, "Okay, everyone have their seat? Waitress, fill up the cups. No, no, no, give him a bit more. Actually, you know what? Just fill it up to the rim, so you don't have to keep hovering over us. Alright, bottoms up. I'm really happy everyone's able to make it today, and you're all very welcome. Please eat as much as you can. Waitress? Re-fill his cup full, don't listen to him, he can hold his liquor fine. And hey, you, you didn't finish your drink. Anyway, we're all friends here, so please don't hold back, and I hope everyone has a great time tonight. *raises glass, and the whole table takes another drink* So, I guess I just wanted to say, thank you for all coming, and it's great having you here, and if you want anything, just order it. We've got great food in Yantai. Cheers. Oh, especially the celery. It's fantastic, trust me. This place is known for their celery. Oh, is it the co-host's turn to toast now? Well, let's just drink this glass, and I'll let him talk. *drains glass*"
Host #2, 3, and 4 repeat this process, and by the time host #4 has done, everyone's had about 20 drinks each. This is the end of the first phase.
Afterwards, there is a brief free-for-all, where people actually start eating and telling stories and making toasts every now and again. It's during this part that the atmosphere slowly starts to liven up and builds for the climax. Usually, when everyone's more or less done with eating, the second phase ends.
In the third phase, the guests make toasts back at the hosts. They stand up and go around the table, having one drink with everyone at the table, while telling them that they appreciated the hospitality. At big events like weddings or birthdays and so on, where there are more than one table, then after the guests are done, everyone at the table stands up and goes to make toasts at every other table. Usually, there's no need to toast each and every separate person at other tables. You only need to make one toast at each table. This marks the end of phase 3.
After that, the guests return to their seats, and there is a final, simple course -- usually noodles or fried rice or dumplings. When the guests are done then, the host makes a final speech summarising the meal, and everyone finishes drinking what they have left. For example, if a bottle of wine was opened but there's still half of it left, then it's split between the guests and finished off. Then people count how many drinks they've had, and those who are lagging behind take a few drinks to catch up to the rest of the people. For example, if everyone at the table has had 4 bottles of wine, and you only had 3, then you have to sit there and finish another bottle before you get to go.
It's considered rude to refuse to drink with someone if you're having alcohol, or not matching the amount of quality consumed to the rest of the people at the table. And usually, if you're not so drunk that you're barely able to walk at the end of a meal, then the hosts will feel like they haven't done their jobs.
This is why I tell people in my hometown that I'm allergic to alcohol.