Explain the culture importance in dealing business in China?
The most populous country in the world, The People’s Republic of China is today emerging as one of the major global economies. China is infamously known as a country of etiquette and ceremonies. The unique character of the Chinese is built on a strong sense of pride in their ancient history and culture. Understanding the basic Chinese cultural, ethical and business values is paramount to any organisation wanting to conduct business in today’s rapidly progressing China.
Doing Business in China
China has witnessed a history that spans over approximately 5000 years and has experienced periods of communism and Maoism, civil war, invasion and even bankruptcy. Since China first opened its doors to foreign investment and trade in 1978, the country has undergone immense political and economical change. Today, following her 2001 entry into the World trade Organisation, China offers a huge potential market for investment and sales with her main industry generated from iron, steel, coal, textiles, and petroleum. Those organisations venturing into business with China, however, will also need to consider the aspects of Chinese business culture and etiquette in order to fully succeed.
There are four historical concepts explaining today’s Chinese culture: * The Guanxi, in literal terms, this central concept in Chinese culture means relationships’ or connections’. Guanxi is a network of elaborate relationships promoting trust and cooperation and for centuries was the main way of accomplishing everyday tasks. Establishing a sincere, supportive relationship based on mutual respect is a fundamental aspect of Chinese culture. In the world of business, possessing the right guanxi is crucial for ensuring the minimisation of difficulties and frustrations that are often encountered. * The Mianzi, An important issue that should be considered throughout business...