The Joint Venture With A Chinese Motor Vehicle Component Company

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Here is the report you authorized in March identifying reasons why the joint venture with a Chinese motor vehicle component company was unsuccessful and recommending ways to improve cross-cultural communication.

As you know, even though both companies had mutual incentive to establish a joint venture, arriving to an agreement was unsuccessful. After analyzing the notes supplied by Mr. Jones and Mr. Wang I have come to the conclusion that several major cultural differences were the source of the communication breakdown.

Major differences between both American and Chinese cultures presented themselves throughout the negotiation process and greatly contributed to the failure of reaching an agreement. The main differences causing …show more content…

Jones and Mr. Wang.

Thank you for the opportunity to conduct this research. I’ve enjoyed learning the major cultural differences between America and China and ways in which to improve cross-cultural communication between these two countries. If you have any questions about the material in this report, please call me.
To improve Major Motor Vehicle Component Company’s (MVC) cross cultural communication, this report recommends that MVC implement a negotiator selection process and provide pre-departure seminars.

The three main reasons for miscommunication between the Chinese and Americans were their differing views on time, the context of their cultures and the directness of their communication. Breakdown in communication occurred because the Chinese, a polychronic culture, focus more on building relationships rather than adhering to time commitments and don’t view time as a commodity like their American counterparts (Hurn and Tomalin 24). To establish effective communication between the differing cultures, the Chinese need to work more to acknowledge the established time frame and schedule that the Americans are expected to adhere to, whereas the Americans need to work harder on creating personal relationships with the Chinese and investing time to show their loyalty and commitment (Hurn and Tomalin 25).

The second area of communication breakdown occurred because of the differing use of direct and indirect

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