Conducting Business in China

Conducting Business in China

Due to its rapid economic growth[1] in the last two decades and vast market potential, China is potentially one of the most rewarding places to do business in. However, the country presents formidable difficulties for a foreign businessman due to its vastly different culture, business ethics and a hybrid economic system that still suffers from a hangover of the command economy of a socialist China. In this paper, I shall discuss which cultural factors and etiquettes are important for foreign businessmen to be familiar with when conducting business in China. Some key political and economic issues facing China that could affect future business prospects in ...

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and severely affected the work ethics of the working people. The lack of incentives for individual workers in a controlled economy has created habits of indifference towards customers, which is particularly noticeable in the service industry. The previous system in China was also based on "collective responsibility" that killed initiative in the workforce, and although things are beginning to change, the business culture still retains some of the negative inertia as old habits die hard. ("China's Business Context," n.d.)
2. "Guanxi": Guanxi is the Chinese word that approximates in meaning to the English word "relationship" and it is one of the keys for successful business in China. The Chinese prefer to deal with people they know and trust. This is true not only in business dealings but private dealings as well. Hence it is important for businesses to develop a close relationship--Guanxi--at both the company-level as well as the personal level. It is important for the Chinese ...

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etiquettes, although not directly related to business, are extremely important and it is advisable for business people desirous of doing business in China to be aware of them.
It is important to show respect for the local culture. Although this advice applies to all cultures, it is particularly relevant to China. The Chinese are extremely proud of their ancient history and culture, saving face is an over-riding concern in the Chinese culture and they do not take kindly to criticism of their country or culture.
Punctuality in business meetings is desirable in China. Warm hand shakes followed by a slight bow are a feature of Chinese greetings but ideally one should wait for one's ...

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"Conducting Business in China." Essayworld.com. June 15, 2016. Accessed June 23, 2017. http://www.essayworld.com/essays/Conducting-Business-in-China/105703.
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Added: 6/15/2016 07:54:03 AM
Category: Business
Words: 1367
Pages: 5

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