Doing Business in China

416 Words1 Page
bulb-icon

Recommended: chinese cultures

Doing Business in China

How to do Business in China

Overview:

China remains an untapped market with great growth potential for companies seeking to do business in there. Be aware that the Chinese community is weary of companies entering the country because they believe that most companies are there to make a fast dollar. However, if a western company follows a few simple rules and adheres to some cultural outlines, success in China can be achieved.

Culture:

Building relationships are crucial in China. Also known as guanxi. It would be helpful to build a few relationships with companies prior to even suggesting that you want to operate in China. A person known to both parties should arrange introductions to a Chinese company. Chinese business people are unlikely to meet with strangers. Westerners will find that production, distribution, and advertising of a product or solution flows easiest once crucial relationships have been built. A large amount of business is conducted at after hour’s entertainment gatherings. Do not hesitate to bring small gifts as mementos of your visit. Learn the language. Although the country has many dialects, Mandarin is the official language of China. Lastly, do not be rigid in your ways. Deals are often delayed in China. Learn to be flexible.

Meetings:

The first rule of a business meeting in China is to be punctual. If a meeting is set for 8am, then be there at or before 8am. It is customary for the senior member of a group to enter a meeting room first. This member also guides discussion during the meeting.

Government:

Never underestimate the power of the Chinese government in business. Remember, the communist party is still the biggest company is China. Remember that a network of business executives in China extends not only throughout the corporate world, but also throughout the government bureaucracy. Many Hong Kong entrepreneurs will freely admit that it's important to grease the wheels of government bureaucracy with well-placed gifts and personal relationships with those in power. Proceed with extreme caution when it comes to gifts.

Show More
Related

  • The History of European Merchants in China

    1791 Words  | 4 Pages

    Bachman David. Bureaucracy, economy, and leadership in China : the institutional origins of the great leap forward: 97

    Read More

  • Comparison of Russian and Chinese Governments

    927 Words  | 2 Pages

    In China there are three political structures: the bureaucracy, the state, and the communist party. In the bureaucracy lie the president, the premier, the state council standing committee, and the state council; in the state there is the National people’s Congress Standing Committee and the National People’s Congress; and in the communist party is the General Secretary Standing Committee Polit...

    Read More

  • Foreign Direct Investment in China

    1419 Words  | 3 Pages

    China has come a very long way in the past 25 years. China has grown at nearly 10 percent a year over the past 20 years. China's explosion on to the world investment, production and trade scene is the product of its size, growth and openness. This is leading to tremendous changes in the global economy.

    Read More

  • The Cultural Revolution That Took Place in China

    1670 Words  | 4 Pages

    "China - Language, Culture, Customs and Etiquette." The Translation Agency For A Complete Professional Translation Service. Kwintessential, n.d. Web. 07 May 2014.

    Read More

  • Risk Perception

    703 Words  | 2 Pages

    Doing business in China is highly based on the development of good personal relationships over time. They consider relationships more important than tasks. The emphasis here is that they are doing business with people rather than companies so personal contact and loyalty are important. There is a huge importance placed on sincerity above all other qualities. Their communication style tends to be very indirect. It is not uncommon for them to say “yes” to acknowledge they are listening to you but it may not mean the same as it does in other cultures. Chinese have a hard time saying no and the organizational structure is hugely bureaucratic so things are unlikely to happen fast. Their teams are groups of specialists working under a leader who may not be a specialist but will have links to the head of the company. Their structure is vertical so consensus from the team on decisions is common so expect the process to be slow. Chinese are punctual, cancellation or lateness may be seen as insulting unless good reasons are provided. They are quit...

    Read More

  • China and India

    655 Words  | 2 Pages

    China’s culture related to business practices is influenced by paternalism, collectivism, and the reliance on personal contacts (Ardichvili et al., 2011; Xiao, 2011). Cultural paternalism is manifested in that the Chinese...

    Read More

  • Op war

    968 Words  | 2 Pages

    China is a rather closed on empire itself, as commercially in the field of exchange of ideas and innovations. This is due to strict protectionism applied by the imperial bureaucracy , ideologically supported both by elites , anxious not to undermine the traditional rites very conservative society (or squeamish ) and the p...

    Read More

  • A First Time Expatriates Experience In A Joint Venture In China

    1747 Words  | 4 Pages

    Introduction In the reading "A first time expatriate's experience in a joint venture in China" we have come to understand the nature and structure of the joint venture between the U.S.A. and China and the role that James Randolf played in strengthening and maintaining the international partnership. Controls Inc. was a subsidiary of the parent company Filtration Inc. and so was shielded from any outside competition. When Controls Inc. was given the charter to pursue its own business, they realized the need for being cost effective as a result of which they started an operation in Singapore with the name Controls Asia-Pacific with the prime objective to have a presence in the region and to study and evaluate any possibility of a joint venture. James has been an employee of Controls Inc. for the past 23 years with experience in managerial positions of about 15 years.

    Read More

  • Dell In China

    1666 Words  | 4 Pages

    In 1995 Dell entered the Chinese market. With a population of 1.3 billion this was a great new market for Dell to tap into. IBM, Compaq, and Hewlett-Packard had all ready realized this and had opened offices in China in the early 1990s.

    Read More

  • Cross Cultural Marketing Essay

    954 Words  | 2 Pages

    The humble perspective of the Chineese will sacrifice their personal rights for the sake of the rights of others. Understanding this will lead to the understanding that a marketer must focus on the whole group to be effective This is the only way that the average customers from China will be reached, thereby avoiding the possible loss of customers do to the wrong appoach. The need of the customer must be considered above the need of the company when pricing the products. In order to demonstrate that the company cares about the Chinese people, our company must put their preferences and taste first. Business relations are also a vital cultural aspect to be considered by company A.In addition the Chinese are a very social culture therefore it will call for the marketing team to pay special attention to this aspect of their behavior. This means looking at relationship, then looking at business. Coversly American 's, tend to be more stand offish. Americans value contracts more than they value relationships, and this must be addressed by the marketing team. Socialization must especially be involved as part of the promotional aspect. This should include conferences and gatherings as part of the promotion (Dsouza,

    Read More

  • The Importance Of China Travel Guide: Travel To China

    950 Words  | 2 Pages

    Home to almost twenty percent of the world's population, China is one of the most exciting places to visit and live. Aside from its rich history and culture, wonderful tourist spots have become major attractions not only to locals but to millions of foreigners from different parts of the world.

    Read More

  • Differences and Similarities of Business Systems in China and Japan

    750 Words  | 2 Pages

    Individualism dominates China, and company exists purely for profit. People rarely identify themselves as a company man. In most Chinese people’s mind, family is the most important.

    Read More

  • Chinese Cultural Values Essay

    706 Words  | 2 Pages

    This led to the difficulty of westerns doing business with China because it is believed that it was all about self-interest and that the westerns were pretending to have the Chinese interests at heart. The message of Xunzi was also the only one allowed by the communist party which led to guanxi and the hierarchical belief of using military strategies to build a very successful business. These values have been allowed and forced to endure over time by the communist party which has been ruling for so long that the people became very individualistic and had to rely on the guanxi strategy to endure the tough times. I believe that the changes that are taking place affecting these values are the increased business relations with the western world which views many of the Chinese values as corrupt or unethical. Guanxi is a great example for something westerns see as corruption due to it being originally established on the exchange of gifts and favors in order to succeed and create self-value in your area of business or success. Due to the western laws and global regulations this can be seen as bribery which has been banned by many organizations and commissions in order to create a fair business system. While guanxi can be seen as changing, the hierarchy and pride have not been pushed to change due to the impressive economic growth that has been taking place in China as well as their pride of their heritage and doing things the Chinese

    Read More

  • China: Rising to Be the Next Superpower?

    975 Words  | 2 Pages

    China has also expanded their trading industries with countries such as South Korea, Japan, Taiwan, ASEAN, India, Russia and Hong Kong. This has not satisfied the Chinese greed for income as they also export and import goods to American countries, name...

    Read More

  • China's Development

    1177 Words  | 3 Pages

    China's development is praised by the whole world. Its developments are not only in the economic aspect, but as well in its foreign affairs. Compared with other developed countries, China is a relatively young country. It began constructing itself in 1949. After 30 years of growth, company ownership had experienced unprecedented changes. Entirely, non-state-owned companies can now be more involved in sectors that used to be monopolized by state-owned companies.

    Read More

More about Doing Business in China

Open Document