Essay on Business in China

In addition, by understanding the culture and societal trends of China, it will be easier to create the most effective marketing strategy and IMC programs for this country. Also, understanding the elements of the business environment of China, such as ethical standards, management styles, formality, and other factors are essential before entering a foreign market.

Naturally, when there are great gains to be had, there are great risks. A lack of understanding in cultural protocol is a commonly occurring pitfall for foreign, new to market business endeavors. Also, even positives such as China’s size, can commonly be a double edge sword. It is imperative for companies considering international expansion to create a solid entry to market strategy, which evaluates if the firm has any potential in achieve gains in a foreign marketplace.

A. Cross-Cultural Differences Company X is considering expanding its business to China. However, prior to moving into a new and foreign market, Company X must understand the various cross cultural differences that are relevant to properly conducting business in China. By being more sensitive to and understanding the cross-cultural differences, Company X's transition into the new market should be less challenging and improve its chances of acceptance. Language, work ethic and material culture are three cultural differences that should, first, be understood prior to pursuing opportunities in China.

The rise in China from a poor, stagnant country to a major economic power within a time span of twenty-eight years is often described by analysts as one of the greatest success stories in these present times. With China receiving an increase in the amount of trade business from many countries around the world, they may soon be a major competitor to surpass the U.S. China became the second largest economy, last year, overtaking Japan which had held that position since 1968 (Gallup). China could become the world’s largest economy in decades.

The following examines the nation of China and its trade relations with the world, particularly the United States. The focus is primarily on China’s culture and how it impacts business dealings with other countries. Areas examined include: Religion, Management Philosophy, and Business Etiquette. Also discussed is China’s growing status as a world super power and how that has impacted the global business landscape. Likewise, various trading partners are examined and the effects of doing business with China, specifically for the United States. Points of concern for the United States are things such as the

China is the largest market in the world, and probably the hardest business environment. This narrative reflex China’s immense diversity, complexity, and its enormous competitive intensity is unrivalled versus the world.

This process has more significance in most countries except the Unites States. The approach in the U.S. is to get down to business straight away without wasting too much time on people. This is in stark contrast to the process in China where the focus is on building “Guanxi”, that is, the intricate and omnipresent network of personal relations. The U.S. approach can be a huge problem when doing business with China. The American efficiency interferes with the patient development of a mutually trusting relationship – the very basis of an Asian business agreement. This is what happened in the case study. Mr. Smith had done his research and was aware about the Chinese business methodology, but he did not think it was important to implement it. He was well advised by Mr. Tang. Mr. Tang, even though pointed out the significant features of the “American” and the “Chinese” way of doing business, did not stress enough to make Mr. Smith understand its significance. Mr. Tang also jeopardized his relationship with Mrs. Ming whom he had known for many years by not disclosing that the supplier was not a direct supplier.

China is rising in many ways— specifically in terms of their economy, their military, and global and cultural diplomacy. For the past 20 years, China has been utilizing a careful strategy for their global economy in various ways. First of all, they have secured enough raw materials so that they have a long-term supply. Chinese firms began to secure shares in Europe, the United States, and Canada.

The Chinese economy is one of the biggest economies in the world. It is also the fastest growing economy in the world, with a current growth rate of 7.8%. The Chinese economy has multiple strategies to help promote the economic growth. One of which being, China investing heavily into education. Another strategy is attracting Foreign Direct Investors. Finally, one last strategy is China and their memberships in free trade agreements. Through these strategies China gained this high rate of growth and thrive to maintain it.

China will likely prove to be a significant market for the U.S. in the future. China is one of the world's fastest growing economies, and with its efforts to reform,

It’s as though China is in a social time warp, in many aspects, as compared to the United States. A clear example of this time warp is the lack of affirmative action in China. Policy still practiced in China was eliminated in the U.S. more than 50 years ago. For example, certain jobs in China are reserved specifically for women. Statistics prove this, it’s communicated by employers, and it’s understood in their society. No one challenges it.

3.4 Political Factors: Politian’s in China are attempting to avoid any acceptance on a leadership role in the world economy. They claim that China is still behind other countries in technology and has much lower power per capita GDP compared the world’s leaders; US. (Leo, 2010). Due to these 2 factors, lack of technology and economic developments, this presents more opportunities for international businesses. The reason being why China maintains to be an eye-catching destination for international markets.

This paper aims to explore the cultural barriers that GM encounters while doing business in China especially in terms of language and Asian mind difference. As a matter of fact, we cannot examine all the cultural barriers due to the scope of the paper. On the other hand, some differences emerging from different thinking behavior between US and China are exemplified in the second part of the paper. In the first part, the company information and the SWOT analysis of GM are given before going further with the Asian operations of the company.

The main advantage of doing business in China is the fact that China has emerged as one of the world’s strongest economic forces, driven by the shear number of

The situation for new entrants was very complex in china; acquisition of cities took much longer than in developed countries. Starting a new business in china was not a rapid process. Making relationships between channels was a slow process, because manufacturers, distributors, and other actors preferred to negotiate with people who they knew before, in china personal relationships are quite important in businesses. Some factors that influenced this process were