To: Mrs.

Van Den Bergh

From: Pham Kim Hoang & Adisa Ramic

Topic: Study trip experience

Date: 10/05/2016

Business culture in china

For talent & management development we got the chance to
write a report about the country China, we chose the topic
Business culture in China mostly because we both are interested
in the culture of the country and we want to be more aware of the
importance of the countrys culture.
Thanks to the numerous works and seminars during our International Business Management
studies we got to upgrade our knowledge about the Chinese business culture. We will explain
some important facts when we want to do business in the Chinese market.
China is among the business world, the most attractive locations for doing business. They are
the second largest economy after the United States and the biggest trading partner for most
Asian economies. They have become one of the strongest powers. This rise boosted
international business. Foreign investors want to deal business in China mainly because of the
growing market, the very low cost of labour.
These are the reasons why foreign Companies are moving to China or want to do business with
them, foreign investors can make huge profits in China. Companies can enjoy low labour rates,
cheap import duties, good security and good power system.
Before we want to enter to Chinese market we have to understand their business and
etiquette. China is one of the hardest culture to understand in the business context therefore
we have to be prepared and have keep on upgrade the knowledge of culture in a business
context.
bao & guangxi
Bao," plays an important role in Chinese business culture. Bao is what most Westerners would
know as "the golden rule," do unto others as you would want done to you. Bao is about
respecting professional relationships and treating people with respect. Bao holds that those
who give respect to others should receive the same treatment in return. Bao is closely related
to the concept of Guanxi" in that professional networks and relationships are seen as to
getting business done in China with the Chinese frequently relying on the aid of others in return
for previous favors. (Anzmac, 2016)

More about the term - guanxi:

Network of friends can bring you new contacts from the connections of your friends, which
may enlarge your network. This make a sample situation common in China.
Relationships in China are of a high importance, they can be your door to your dream career or
your way to attract investments for your company. Whatever your biggest goal is, know that
before you can have a privilege of these doors, you will have to be in a trustful relationship
throughout your lifetime. In China, people build their network through all the social institutions
they become a part of.

Face is very important to a Chinese people, if you make someone losing their face, you will
run the risk of also losing their friendship (-relationship). Losing face is embarrassment at
a social level (they wont say no and say yes instead), and there are specific things that will
cause someone to lose face. When someone is called out, told that they are doing something
wrong or corrected are the worst ways to lose face.
This is really important to keep in mind because while interacting with the Chinese it can be
sometimes easy to make someone lose face by not even realizing youre doing so. Whereas
being direct and honest in America is a bad thing, in China they are very direct. For instance,
there are no awkwardness about asking how old someone is, or telling someone that they are
fat, ugly or pretty.
Guanxi plays an important role in doing business in China, it is of importance for organizations
to handle their guanxi well. As a Chinese business man once said: If you have guanxi, there is
little you cant accomplish, but if you do not .you will be standing in front of closed doors, cueing
in line and falling victim to long administrative procedures. (Myweb, 2016)

Some important vocabulary that is useful to remember when doing business with China:
Mian Zi face

Ke Qi courtesy

Fan Ju dinner

Speaking of religions, paying attention to the religion in China is not that necessary. China is a
multi-religious country of Taoism, Buddhism, Islamism, Protestantism and Catholicism but we
do know that Taoism and Buddhism has the widest influence in China.
Taoism: harmonization of opposites male and female, man and nature

Buddhism: ethical behaviour, wisdom, the middle way

Some foreign companies would fail in doing business with

China just because they do not know the culture and the
consumer behaviour. We should be aware of the Chinas high
context culture when doing business with China. Respecting
each other in Asia is a must, you have to know the etiquette
how to greet your superior when you are welcomed in the
country. Also be aware of their communication styles.
Chinese culture is rich in beliefs, customs, and superstitions, one example is do pay attention
when giving gifts to the company, avoid talking about politics, be careful with gestures as they
have different meanings in China, avoid embarrassing questions as the Chinese do not like to
say no which we already have mentioned as face saving. Many Chinese consumers,
particularly elderly shoppers, wish to save as much as possible. Chinese consumers generally
favour foreign brands and last but not least build a close relationship before you start with the
project.
The Chinese Way of Life in Modern China
Today, the way of life in China is not different at all from that anywhere else in the world due
to Western influence. You can see in China today modern apartment complexes and towering
high-rise buildings as well as modern style homes. Clothing in China is very similar to that of the
Western culture now.

Modern China
However, tradition still lingers in all Chinese households and societies all over the world. In
older neighbourhoods, rural mud and straw houses can still be seen, and in rural areas the
traditional ways of life is still very alive. And although the way of life now is much modernized,
traditional values of family importance and reputation is still felt by all families.

Chinese tradition

Today, the Chinese live in smaller family units, usually only with parents and children, and
sometimes grandparents. Almost all adults have a job, male or female. In many families,
grandparents look after the house and children during the day, and more and more children
attend nursery schools and kindergartens so that mothers can be free to work.

Small Chinese family

Today, girls as well as boys are valued. Women now do many kinds of work outside the home.
Many young households share in the shopping, housecleaning, cooking and caring for the
children to show that they believe the sexes are equal. Some of the older generations may still
show slight hope for a grandson or great-grandson and disappointment if the outcome is a
granddaughter, but in the end they love and value each with equality. However, equality
between the sexes is more widely accepted in the cities than in the countryside.

Chinese Equality Symbol

Relationships have become more democratic as parents no longer expect their children to
show unquestioning obedience; however, most Chinese parents today, although much more
lenient and reasonable, are still strict and expect a good deal of respect. As for marriage, young
people today generally choose their own marriage partners on the basis of shared interests and
mutual attraction. However, parents still play a role in arranging some marriages, especially in
rural areas. Any couple today would at least consult their parents about such a major decision.
(The Chinese Way of Life in Modern China, sd)

Bibliography
Anzmac. (2016). Retrieved 2016, from Anzmac:
http://www.anzmac.org/conference_archive/2006/documents/Chan_Alvin.pdf
Myweb. (2016). Retrieved from
https://myweb.rollins.edu/tlairson/asiabus/chiguanxinets.pdf
The Chinese Way of Life in Modern China. (n.d.). Retrieved from eTeacherChinese:
http://blog.eteacherchinese.com/china-economy/the-chinese-way-of-life-inmodern-china/