Doing Business in the Chinese Business Culture

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Doing Business in the Chinese Business Culture

Doing business in China is on many levels similar to conducting business in many western countries. However, the importance of understanding the local business culture and practices are imperative to ensure success, for your business there. The following points deserve special attention:

Dealing with Bureaucracy and Cultivating Relationships

Dealing with bureaucracies and cultivating relationships on many levels, will ensure business success in China. This is the only way, because doing business in China as a foreign entity, this organization will be the minority partner (Darin, 2010). Difficulties that may arise consist of the Chinese bureaucracy. According to Darin (2010), it is a homogeneous culture with many subdivisions within the culture, some delegation does exist but nothing passes through with out approval and oversight of the central government/authority therefore, more and more decisions are being delegated to provincial and municipal authorities. Still in its initial developmental stages, the Chinese legal and regulatory environment is made up of the vague laws and regulations which increase the scope for inconsistent explanations and decisions are made by local bureaucrats. In time, one might expect a more transparent, predictable and mature framework as China’s involvement in the world economy intensifies and as it understands its commitment to the World Trade Organization. Cultivating and maintaining a strong and healthy relationship with government authorities/entities, as they will become very helpful in assisting you with navigating through the regulatory jungle and the local import and export markets.

A Changing Marketplace

The true risk of do...

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...es of the business market and the product should also be evident in the contracts between nations.

Works Cited

Darin, A. J. (2010, July 24). Personal interview with the former Human Resource Manager. Vehicle

Operations Launches, Ford Motor Company China Operations .

Rafter, M. (2009, March). Return trip for expats. Workforce Management, 88(3), 1,3. Retrieved July 21, 2010, from ABI/INFORM Global. (Document ID: 1669809321).

Schoeff, M. (2006, February). International assignments best served by unified policy. Workforce Management, 85(3), 36-37. Retrieved July 21, 2010, from ABI/INFORM Global. (Document ID: 996343151).

Wong, M., & Chen, J. (2009, October). Retirement and health benefits mobility solutions in Greater China. China Staff, 15(9), 34-38. Retrieved July 21, 2010, from ABI/INFORM Global. (Document ID: 1895695431).

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