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International Business Culture

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International Business Culture
Introduction to China
---- by Angela Yang
杨秋红(Yaung Qiuhong)
• When you are talking about China, what
pop up to your mind?
в—ЏUrumqi
в—ЏBeijing
в—ЏXian
в—ЏShanghai
в—ЏLhasa
Guangzhouв—Џ
9,596,960 square km/3,705,392 square miles, Density:350/square mile
3,718,797square miles(USA) Density: 80 /square mile(USA)
population
Population: 1,321,290,000 (USA: 303,150,000)
56 ethnic groups/ The Han people make up 92% of the
country's total population
Former Vice Prime Minister Deng Xiaoping visited USA
in 1979. It was the first time for PRC leader officially
visiting USA
President Hu Jingtao
Prime Minister Wen Jiabao
• Which of the followings are ancient
Chinese invention?
– Paper money
– Compass
– Clock
– Gunpowder
– Paper
– The first seismoscope
Some of the following English words
originated from Chinese?
Dim sum
Lychee
Won ton
Ginseng
Yam
Chinese zodiac signs are important
What animal sign were you born under?
Chinese zodiac signs are important
1948 1960
1972 1984
1954 1966
1978 1990
1949 1961
1973 1985
1955 1967
1979 1991
1950 1962
1974 1986
1956 1968
1980 1992
1951 1963
1975 1987
1957 1969
1981 1993
1952 1964
1976 1988
1958 1970
1982 1994
1953 1965
1977 1989
1959 1971
1983 1995
China’s History Timeline
Date
Dynasty
2000-1500B.C. Xia
1700-1027B.C. Shang
1027-771B.C.
Western Zhou
770-476 B.C
Eastern Zhou
770-221B.C.
Spring and Autumn
475-221 B.C.
221-207B.C.
Warring States period
Qin
206B.C.-A.D.9
Western Han
A.D. 9-24
Xin
A.D. 25-220
A.D. 220-280
Eastern Han
Three Kingdoms
The first prehistoric dynasty
Thinkers and Philosophers
Confucius, Lao Zi, Zhuang Zi
and Sun Zi
The first feudal autocracy
Predominant ethnic group in
China named after the dynasty
Silk Roads
China’s History Timeline
Date
Dynasty
A.D. 265-316
Western Jin
A.D. 317-420
Eastern Jin
A.D. 420-588
Southern and Northern
Dynasties
A.D. 581-617
Sui
A.D. 618-907
Tang
A.D. 907-960
Five Dynasties
A.D. 907-979
Ten Kingdoms
A.D. 960-1279
Song
A.D. 916-1125
Liao
A.D. 1038-1227
Western Xia
A.D. 1115-1234
Jin
A.D. 1279-1368
Yuan
the first government in world
history to issue paper money
China’s History Timeline
Date
Dynasty
A.D. 1368-1644
Ming
A.D. 1644-1911
Qing
A.D. 1911-1949
Republic of China
A.D. 1949
People’s Republic of China
The last feudal dynasty
Socialist society
Part of Terracotta Army---The
mausoleum of QinShihuang
• The Silk Roads
– Merchants traveling between China, Central
Asia used overland routes. The most famous
were called the Silk Roads. This network of
routes eventually stretched from China over
4,000 miles to Mediterranean Sea, and linked
China to India, the Middle East, and the
Roman Empire.
Silk Road
Fundamental
Beliefs and Values
пЃ¬Confucianism
пЃ¬Taoism
пЃ¬Buddhism
Social Structures
пЃ¬ Family
пЃ¬ Networks
пЃ¬ Ethnicity
Relationship Rules
пЃ¬ Filial Piety
пЃ¬ Collectivism/ Face
пЃ¬ Trust and Reciprocal
Hierarchy, Respect superior, Avoid direct conflict,
Face is important, Guanxi, Family business,
Perspective on Time, Negotiation on contract
(Redding, G. 1990, The spirit of Chinese capitalism)
Fundamental Beliefs & Values
• Confucianism
– First - family (or family clan); Second - community. The individual
is unimportant.
– Confucianism stresses the importance of avoiding conflict and
emphasizes correct behavior
– Confucianism is a social code based on morality rather than laws
• Taoism
– Wu-wei, or active not-doing
• Buddhism
– reincarnation
Business Culture
• China's ethical system involves respect for
superiors, duty to family, loyalty to friends,
sincerity and courtesy.
• Age brings increased respect and status.
• Hierarchy exists in organizations
Conducts
– Respect elders or superiors
– Be modest, sincere and courteous
Face
• It is very important for Chinese people to
"maintaining face" in everything they do.
• The concept of shame and honor are more
important in China than in US
• Conduct
– Never insult or openly criticize someone in
front of others.
Guanxi
• “ Who you know is more important than
what you know.”
• What is guanxi?
– Relationship
– Connection
– Network
Guanxi does consist of connections, but more
specifically of connections that are defined by
reciprocity and mutual obligation.
Various Levels of Guanxi
Immediate
Family
Guanxi
• How to build and maintain Guanxi?
– Get intermediary
– Get common ground with Chinese
– Showing your interest in his/her experience
– Showing your interest in his/her culture
• Learn some mandarin
• Study using chopsticks
Guanxi
How to build and maintain Guanxi?
– In some cases, Guanxi may last for life with
little or no maintenance.
– For the western businessperson, the key is
continued interaction.
•
•
•
•
Gift-giving, entertainment at banquets,.
Nurturing long-term mutual benefits
Nourishing personal relationships.
Cultivating trust
Guanxi
• The relationship you develop with a person
represents your relationship with his or her
entire company.
• Guanxi is nurtured and maintained through
relationships among individuals not
organizations.
Guanxi
• There is some ethical issues or illegal
issues existing in managing Guanxi.
• In recent years, Wal-Mart, Lucent
Technologies, IBM, Siemens, Carrefour,
Diagnostic Products and Morgan Stanley
have also been caught up in bribery
scandals in China
Family Business
•
•
•
•
Family-directed operation
The dominant family head
Enduring roles and family obligations
Very flexible in every aspect of business
practice.
Chinese perspectives
• Signing a contract is not an end of the
negotiation
• Time is cyclical and elastic
• Schedules should be changed to
accommodate new circumstance
• Short notice is acceptable
Addressing Chinese
• Family name comes first
• Address a Chinese by surname with title
President Hu, Chairman Mao, Director Lu
• Skip vice, deputy and associate
• Married women retain their maiden
names.
Gift giving
• Don’t give a clock as a gift
• Don’t give a green hat to a man as a gift
• Some unlucky number should be avoided
such as 4. Chinese lucky numbers are 6, 8 or 9
• Red represents prosperity and luck
• Golden represents harvest and wealth
• Generally white and black are not right color for
wrapping gifts
How to use chopsticks
Rest one chopstick between your
middle and ring fingers. Use your
thumb to stable it.
Rest the other one between your
middle and index fingers. Also use the
thumb to stable it
Level chopsticks.
Pick up the food with the only
movement of the upper chopsticks,
keep the lower one stationary at all
time.
Chopsticks Etiquette
• Don’t point your chopsticks towards others
• Don’t insert your chopsticks in the bowl
upright
• Don't beat your bowls while eating
References
• Tung, R. & Yeung, I., (1996) Aching business success in Confucian
societies: the importance of guanxi(connections). Organizational
Dynamics.
• Redding, G,. (1990)The Spirit of Chinese Capitalism, Walter de
Gruvter , New York
• Chen, M.,(2001) Inside Chinese Business --- A guide for managers
world wide, Harvard Business School Press
• Dahles, H.& Wels, H. (2002) Culture , Organization and
Management in East Asia: Doing Business in China, Nova Science
Publishers, Inc. New York
• http://en.wikipedia.org/wiki/China#Prehistory
• http://en.wikipedia.org/wiki/People's_Republic_of_China
• http://countries.pppst.com/china.html
• http://www.chinavoc.com/history/index.asp
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