The Significance of Cultural Differences for Foreign Companies in China and How to Overcome Them

1900 Words8 Pages
My essay is about significance of cultural differences for international companies which want to set up a business in China. To do a clearly demonstration, I break it down into 3 parts: First is an example that the culture differences affect international companies in China; Second is the significance of these cultural differences; Third is how the companies would overcome them.
For the first part, there will be examples of international companies which set up a business in China. As we know, since China joined the WTO in 2001, many foreign companies were attracted by China’s huge market and lower labour cost. But some of them experienced hard times when they came into Chinese market. The unfamiliar of the cultural
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Then, in the following part, I will give a more clearly demonstration based on real evidence and shows what are the China’s specificity and why the culture differences is significance for international companies in China.

Significance of cultural differences in China
Culture is a very widely identity. For a company, we usually consider two main parts: the national culture, and the corporate culture. So when talk about Chinese culture’s influence to international firms, I will include both Chinese national culture and Chinese corporate culture.

For Chinese national culture, we need to consider many parts, such as the philosophy. Because of the long history, China has formed very complete and complicated philosophy, which has a great different from western countries. Some traditional ideas are still kept in every Chinese people’s mind. A simple example is the advertisement of McDonalds mentioned above. Kneel down in China could never be a joke or used in an advertisement. Because of the influence of Confucianism, Chinese people in some parts are more conventional than western people. Some things which have a strong sex and violence implication may be forbidden by the government. The Techcn website (2009) [6] has showed that one of the reasons why Google suffer from a failure in China in 2007 is the Chinese most powerful media CCTV made it public that Google can link
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