Advanced Search

The story appears on

Page A10

November 25, 2017

GET this page in PDF

Free for subscribers

View shopping cart

Related News

Home » Feature » Art and Culture

The ABCs for doing a successful business in China

By Dahvida Falanitule | 00:05 UTC+8 November 25, 2017 | Print Edition

FOR a business to be successful in China, it must first take the time to understand the fiber that threads hundreds of generations into a single weave.

Chinese cultural history spans 5,000 years. Like most cultures, the Chinese have unique features of commonality that connect society. Some of the most dominant include the concept of collectivism (orientation toward the group), the importance of saving face (embarrassment), and the emphasis of relationships.

Realizing the significance of these individual components and adjusting to these concepts gives foreign businesses a unique advantage in business practice. Let us consider some of these features in detail.

Collectivism

Based on Dutch social psychologist Geert Hofstede's research of cultural dimensions, China has the lowest individualism ranking of any Asian country. Collectivist cultures, like China, inherit perceptions that take on unique characteristics. For instance, in a conversation, collectivists tend to listen to the tone of the conversation rather than rely on the message itself. In addition, as one might think, collectivist cultures emphasize the importance of maintaining loyalty to associated groups rather than to the concerns of self.

Saving face

Another critical dimension of the Chinese culture that is prevalent within society and essential to understanding when conducting business is the concept of saving face, or mianzi.

Face encompasses the intellection of credibility, respect, honor and reputation. Research indicates face in Chinese societies has a direct correlation to social standing. The higher the rank one has achieved, the greater the perceived loss of respect.

Relationships

The Chinese prefer to do business with those whom they have established a trusting personal connection. While the Chinese are equally as results-oriented as their Western counterparts, their success is dependent via a network of established relationships constructed to guarantee good results.

In addition, unlike their expressive counterparts, the Chinese personality tends to be conservative, agreeable, subtle and indirect.

Here are fundamentals of culture integrated by locals conducting business in China.

Guanxi

Guanxi (connection) plays a critical function in a collectivist society where each person's contribution is important to the successful function of the society as a whole. Guanxi is a heavily indoctrinated reciprocation of favors, and intended to retain a level of balance within a relationship.

Similar to a financial obligation, the granted favor must be paid with a likewise favor to ensure equilibrium within the relationship. Those who fail to adhere to this time-honored social norm find themselves with loss of respect, confidence and influence within associated group affiliations.

On the upside, the practice of guanxi has the ability to deeply reinforce relationships and solidify personal long-term commitments. Guanxi, misused, turns into a form of social license to accept bribes, underhanded loans and commercial sweetheart deals.

This unfair advantage has detrimental effects in the business community and creates an atmosphere of distrust and disillusionment by those who try to operate from an ethical basis.

The concept of guanxi is an integral part of Chinese society and important for long-term partnerships to be successful.

Banquets

Another important aspect of how the Chinese like to conduct business is in the form of banquets.

At the essence of these festivities is the time-honored tradition of Guanxi, as this particular setting of desirable location and quality food allow for relaxed socialization in a more comfortable setting. Chinese etiquette places great emphasis on such details as seating arrangements, use of chopsticks, proper toast, and the amount of food left over at the end of the meal.

For those foreign enterprises who take the time to fully acquaint themselves with, and observe the cultural aspects of conducting business in China, may very well find themselves in the driver’s seat.

Art and Culture


 

Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend