Doing Business In China Research Paper

Executive Summary

The Chinese have a vast web of traditions, customs and networks that shape their business culture. It is important to learn and understand these critical components for doing business in China. It can be a confusing and fascinating experience for a westerner unfamiliar with Chinese customs and history. To learn the Chinese culture and history is to learn ancient Asian history. It is important that you do so. Confucianism and history play a major part in Chinese society and business today. Guanxi is the most critical component of business success in China. Guanxi is what will establish your company as a major competitor or could keep it from becoming established at all. A good guanxi relationship, particularly with the government,
Due to the differences in customs and culture, Asian business practices vary greatly from that of western culture. Confucianism has been a major influence in Chinese society as well as the business culture. Understanding these critical components of Chinese culture will help you determine the best way of relating to each other. In what circumstances is gift giving appropriate? How do you know a gift from a bribe? What is the proper way of accepting or declining a gift? Dealing with corruption, the consequences of being caught and political reform are also important issues to consider. The importance of relationships (guanxi) and proper protocol for various situations as well as the differences in communication styles are crucial factors for success in China. One must understand Chinese culture and its history to achieve business success with the
Both of these things have a strong influence on the way that business and everyday life in general is approached and conducted. "Although Confucianism is usually followed in a religious manner by the Chinese, argument continues over whether to refer to it as a religion because it makes little reference to theological or spiritual matters (God(s), the afterlife, etc.)". Confucianism was favored by Emperor Han Wu Di (141BC-87BC), the sixth emperor of the Han Dynasty. The Han Dynasty had its biggest expansion under his reign. He also made the principals of Confucianism the state philosophy and code of ethics for his empire. This must have had a profound effect on the spreading and acceptance of Confucianism. Confucius (551BC-479BC) had a philosophy of life that gave respect to everyone and stressed peace and harmony. When asked by Chi K 'ang-tzu, who became the head of the three families who ruled in Lu, about how to get the common people to be respectful and loyal, Confucius said "Approach them with dignity, and they will respect you. Show piety towards your parents and kindness toward your children, and they will be loyal to you. Promote those who are worthy, train those who are incompetent; that is the best form of encouragement." This very wise advice is a good example of the Confucius philosophy of life. Confucius also stresses