Understanding The Chinese Business Practices Essay

China is the 3rd largest country in the world, with a total area of approximately 22,117 km. Located in Eastern Asia, between North Korea and Vietnam, it is bordered by a total of 15 countries, and has access to three seas, the East China Sea, Yellow Sea and South China Sea, and the Korea Bay.

The Chinese negotiation style is based on building relationships with people in the negotiation rather then to hammer out details of an agreement. They feel the beginning stages of the negotiation is the time establish a human relationship and to create the bonding of friendship with the goal to become “old friends” by the

Although China has a complex history, it was one of the most economically stable countries in the world. Chinese’s current complex form of government started with different principles for each city-state and was later unified by dynasties. However, even before the establishment of modern-day China, its success can be contributed to its geographic features, earliest historical record in the Oracle bones, as well as the Shang and Zhou Dynasties. China’s several geographic features contribute to its isolation and success.

Based on document six, China is surrounded by the Pacific Ocean (to the west), the Himalayan Mountains (to the southwest), and the Gobi Desert (up north). These natural barriers helped stop foreigners from invading China, thus helping the civilization develop. Furthermore,

China is located in East Asia. Ancient China is surrounded by Gobi Desert in the north, the Pacific Ocean in the east, the Himalayan Mountains in the southwest, and the Taklimakan desert in the west. This land has a wide variation of animals because of the different habitats provided for them. Most farming was done in the very fertile lands of the Yangtze valley. Present China is much bigger than Ancient China, which means that over time, the kings and different dynasties went gaining more and more land and wealth.

Ancient China is one of the oldest and longest lasting civilizations in the world. The Ancient Chinese have thrived for thousands of years because of the geography, their skills, and their talents. Throughout history, rivers such as the Yangtze and Huang He rivers made China thrive for thousands of years. While other features such as deserts and mountains like the Gobi, Himalayas, and the Taklimakan isolated the Chinese and kept other civilizations from culturally diffusing into Chinese lifestyle and culture.

The legal system is another issue to be considered when doing business in China because it is still viewed as being in a developing stage. Contracts, for example, are highly influenced by this difference. In the Chinese culture, contracts describe how relationships will be developed whereas in the United States, the contract is a binding agreement that spells out the specific terms, conditions and expectations from each party involved. As Company X pursues the possibility of expanding business to China, it must understand that the Chinese business culture does not place as much emphasis on the binding force of a written contract.

Therefore, it is important to increase our knowledge of Asian cultures, languages, negotiation styles, and business practices to further develop business relations that are favorable to the continued growth and development of our own country and the global marketplace. The Asia countries make a massive impact on global economics and trade relations which also affects the political aspects related to international relationships.

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

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.

minus the area of lakes and rivers)—China is 9,326,410 km 2 (3,600,950 sq mi) and the

     On the other hand, Chinese worker are centered on relationship. Chinese focus on relationship with others and live in the world of trust. Chinese trust people around them in their work place. Often, Chinese did not require signing contract in every agreement unlike American where all agreement must be in contract. By trusting others credibility, it helps create a friendly working environment and promotes intimate relationship among the workers. However, their main weakness is their business culture, where they are quiet and reserved which will reduce their credibility when dealing with American. They weakness also made them a weak immediate decision maker. As for interpersonal problem, Chinese are very concern about the good relationship, and hold it as their top priorities. Chinese would not do any agreement or trade that could harm their relationship with others. Lastly, Chinese are very polite and indirect. They try as hard to prevent the relationship from

Chinese workers believe that close personal relationships are imperative to effective communication. American companies don’t share the same views and some organizations have even related this to workplace fraternization, which can result in disciplinary action. Since we don’t believe that these relationships are necessary, or even appropriate, we don’t form them and this could affect a bi-national workplace and possibly even carry over to business dealings outside of the company. The Chinese believe that, when conducting business with other people, a relationship must first be formed to gain the trust of business partners.

Another value that is very important in Chinese culture is trust. Trust lies at the heart of successful long-term intercultural business relationships. Therefore, Oldtown employee must be prepared in gaining the Chinese Manager in China trust to deal with business. In China, the cross-cultural business relationships, trust plays an indispensable role since partners from different cultures don’t always have the same values or assumptions about how business works. When trust is developed, partners can navigate difficult issues over time by fostering a candid exchange of ideas, issues and agendas. Developing trust can significantly reduce what Westerners often complain of in their dealings with Chinese counterparts: unpredictable behavior and a lack of transparency. As a Chinese executive at Google put it, “In China, your success depends on how well a person trusts you.”

Interests: A population of 1.3 billion along with a growing economy makes Chinese market extremely important for Google to enter