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The Differences And Similarities Between Japan And China

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1. Introduction Over the past three decades, East Asia’s economy has developed rapidly with two economic giants, Japan and China, dominating the region’s economy. Japanese revived economy since post-war period has been heralded as a miracle as it showed remarkable improvement over the last thirty years. From 1960s to 1980s, Japan’s overall economic growth increased rapidly by 19%. Additionally, China’s economy had undergone extensive restructuring and the result was a tenfold increase in its GDP since 1978. As of 2014, China holds the title of largest economy in the world surpassing United States (World Factbook, 2014). This essay will analyze the differences and similarities of Japan and China in relation to their business systems. …show more content…

According to Yuan (2005), “Guanxi” refers to a personal relationship with materialistic aims. A contrast from Western culture, Chinese businessmen favor “guanxi” over the rules of law and will generally pursue such material gains relentlessly. It is crucial that foreign businesses are aware of the importance of this term “guanxi” in order to maintain their personal relationships with government officers or partners. The Chinese business is a type of organization developed from wealth ventures by overseas Chinese entrepreneurs. Such single person dominating organization structures are basic with limited operative functions and are successful in niche industries that are less complicated to operate for example, property, trading and basic manufacturing industries. Undoubtedly, Chinese are well-known for their hard working ethic and close family relationships and therefore that contributed to the extensive network of Chinese businesses in the Asia pacific region for example, Hong Kong and Taiwan. There have been extensive changes in Chinese business systems whereby its second generations are now educated in western countries with more reformative mentalities as compared to their older generations (Chen,

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