Doing Business in China and Working With Chinese

In this country specific article I will cover several topics:

  • Doing business in China, or the Culture of China
  • Business Culture in China
  • Understanding Chinese Culture
  • Working with Chinese

What This Article is NOT About

Although I will use some statistics here and there and sum up some numbers, this article is not about the facts and figures. It’s about understanding the culture of China. More statistics about doing business in China can be found here.

And although there is a map of the country on the right, this article is not a tourist guide. It’s about business culture in China and working with Chinese. Another good source for better understanding Chines culture is Wikipedia. Click here to find out more.

A news site on China can be found here. If you want to know how to do business in China this article will help you in the right direction.

Then Why This Article?

Everyone who has ever been in China, be it in big cities or more rural areas, must have found cultural differences between their own culture and the culture of China.

As I say in my podcasts every time, I’m not in the convincing business. I’m here to offer a plan. A plan for people who are looking for solutions. And when you’re doing business in China, you need a plan. Not only a sales and marketing plan. You also need a cultural plan.

And the more you understand Chinese culture, the better, more efficient and effective you will be.

So, this article is about you. You who does business in China.

How to do Business in China?

Recognize this?

  • You don’t understand the English.
  • You don’t understand the subtle non-verbals.
  • You get what you ask for, but not what you want.
  • You wonder why Chinese don’t ask for help if they don’t understand something.
  • You don’t understand why Chinese can sometimes be very polite, timid even and on the other side, they can be really rude.
  • Why do Chinese never give you a “straight” answer?
  • Etc.

If you recognize any of the above examples, read on…

Business Culture of China

On the right-hand side, you see a table with an overview of how China scores on the first four primary dimensions of culture.

As you can see, China, compared to the other Western countries, scores quite different (any score with more than 10 points difference is significant). But not on all dimensions. This means that when you’re working with Chinese it is important to realize that different cultures will have a different way of doing business in China.

How to do business in China is not something that is fixed in concrete. Nor is it something that you can write down on one piece of paper, article, a book, not even in many books.

What is important is that you, a non-Chinese, realize that your culture is different (not better!) than the Chinese culture. And if you want to succeed in doing business in Chine, you better not only take the rules, regulations, and language into account. You better also understand the culture of China. If you miss that, your business will not work (or will take a lot more time, costing you a lot of money).

Working With Chinese

As said before, working with Chinese will be different for different cultures.

I was in Bejing some time back for work. After my first day of work was over I had some time to myself to explore the city. I had some local money, a credit card, and a can of coke. I had a vague idea where I would be going, but got lost after walking about four blocks. I had plenty of time and made it back to my hotel alright, but I’ve never felt so alone in such a big city. You can’t read any signs (other than in the metro), and hardly anyone speaks English.

“I’ve never felt alone in such a big city.”

  • Chinese will generally not say no if you ask them to do something. That is if you are the boss, or being perceived as the boss.
  • In the US and UK, it is possible to delegate upward. Meaning that if your boss asks you to do something you can make it conditional to the extent that you can request your boss to do this or that in order for you to do what your boss asks you to do. This does not happen in China. You can even say that upward delegation in China is simply not done.
  • Being more collectivistic or Loyalty to Group oriented (a lot more than for instance Indians), Chinese put a lot more emphasis on relationships than on tasks. For a Chinese, it is important to know who you are as a person. In China, it is relationships over tasks. In the West, it is task over relationships. In the culture of China, contracts are important, but who you are is much more important. To that extent the contract is secondary.
  • Chines communicate indirectly. Direct questions from Westerns are seen as rude and impolite. Where in the West we can really only deal with direct answers in the form of Yes and No, Chinese, in the eyes of Westerns seem to avoid giving a “straight” answer. In their eyes, they give you a straight, but polite answer. It’s just that the Western can’t “read” that kind of indirectness.
  • Being a Manager gives status.
  • Although at first you might not see this, but rules and regulations are not as important in China as they are in the West. Even though you may experience China as very bureaucratic, the rules, regulations, paperwork etcetera, is mainly a fiction of power of the powerholder. Not so much a display of the necessity of rules.

Summing it Up

Doing business in China, understanding the culture of China and working with Chinese is not as straightforward as you might think. And that says absolutely nothing about the Chinese themselves. It says everything about the cultural differences between China and Western cultures.

Not many Chinese speak English. It is changing but in a country as big and diverse as China this will take a while.

How to do business in China is not easy. In a recent survey, I held myself, international managers ranked China as the second most difficult country to do business with. The culture of China is so different from Western culture that you must understand it better to succeed there.

Remember, Culture eats strategy for breakfast

An Overview of China, the Country

doing business in china map

 

15 Things You Didn’t Know About the Culture of China

Scores of China on the First Four Primary Dimensions of Culture

HierarchyLoyaltyGoal OrientationPredictability
China80286825
United States39906345
France65754988
United Kingdom38906536

Above are the scores of China compared to some other Western European countries. If you want to know more specifics about each of these dimensions, click here.

 

The Five Biggest Challenges to Doing Business in China

 

 

The Culture of China; also on a can of Coke

I deliberately got lost in Bejing. I had a map, but couldn’t read the street names anyways. But before I took off, I bought this can of coke.

Chris Smit at Chinese Wall

Here you see me standing at, yes, the Great Wall of China. Very impressive. Although of the 3500 kilometers only a bit is actually good enough to visit.

An interesting detail is that the part where this picture is taken is maintained by a… German company.

Chris Smit

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Chris Smit

I'm passionate about Cultural Difference. I have been helping organizations save time and money when they work Internationally for the last 19 years. I have had the fortunate opportunity to hold lectures, workshops, and consulting projects on this subject World Wide. It has made me understand my own culture much better, and appreciate the differences around the world.
I have a Master's Degree in Organisational Psychology and have lived in the USA, the Netherlands and, currently, in Belgium.
Thank you!

Chris Smit
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