November 29th, 2012
Doing Business in China
The role of government when doing business in China is very important. It is especially important if you are from a different country, such as the United States, because the approaches to dealing with the government are much different. There are many factors in which should be considered when dealing with business related issues with the government. These include whether or not your business strategies go along with the plan the government has for Chinas development, understanding how the Chinese government interfaces with your business, and also how to deal with pressures from the government when they want you to do things you and your business don’t want to do. (Palne, 2010). A major mistake foreigners often make when dealing with the Chinese government for business is that they think they can gain government support with money and connections to people in higher positions. “Working with government isn’t a matter of periodically wining and dining the right officials or reacting when policies change; it must be a central part of the strategic planning process.” (Palne, 2010, pg. 104) The role of culture when doing business in China is important if you want to be successful. When going to a foreign country to do business, it is essential that you learn the norms of the culture because they can be very different compared to where you are from. “A US company must learn the local business etiquette and norms. The correct protocol can actually be learned from the Chinese themselves. As previously stated, humility is a powerful tool in China. Accordingly, a US company must be open to learning from the local Chinese.” (Chapman, J. & Xu, W, 2008, pg. 9) The business dynamics are not going to be the same so you have to become familiar with environment to ensure that you are doing business properly within the Chinese culture. In China, personal relationships are very important when dealing...
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