Differences Between Chinese and Western Business Culture

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Differences between Chinese and Western Business Cultures

This paper discusses the differences between Chinese and Western business cultures and values. China has joined the World Trade Organization for 10 years, the divergence between Chinese and western business styles is decreasing due to the globalization and increasing world trade and growing freedom of capital flow(Liu and Mackinnon, 2011)[1]. The paper attempt to reveal the reasons why Western businesses could be successful in China based on the intercultural business concepts.

China is a sleeping economic giant in the international business. As an emerging economic superpower, China is urging western business to understand its distinct business concepts and cultures. One of the most knowledgeable Chinese work habits and negatiating behaviors is “Guanxi”, also known as “connection network” in English (Buttery & Leung, 1997)[2]. “Guanxi” could be the basic access to the needed influence in China. It’s been practiced in building relationships and establishing political capital. Westerners who are trying to do business in China must get used to it. Chinese business culture differs widely from the Western in many ways. However, China has taken steps of adopting a more Western style of business. However, the Chinese business culture has been changing into a hybrid due to the appearance of the young generation of Chinese businessmen who are mostly educated in western universities, the global financial crisis and the emerging requirement of Western equity capital(comment, n.d.). In this case, there’s a huge space for the Western businesses in domestic market.

Literature Review
A study focuses on business values of six typical regions in China (Ralston, 1996)[3]. The regions are Guangzhou and Shanghai (the most “Western”), Chengdu and Lanshou (the most traditional) and Beijing and Dalian (the combination of the two extremes).The study compared and contrasted the Cosmopolitan...
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