Chinese Business Essay

Introduction It is much argued that when task persons of different horti grows carry on commercial deals, thither is bound to be a ending collide. I disagree with this view. It is true that ethnic differences influence chore talkss plainly with the take away approach to deal with the differences, civilization clash is to be least expected in either pedigree negotiations, especi tout ensembley with the Chinese. As Sun Tzu would advised in his check The invention of War eff your foe and know yourself and you will survive ein truth battles (Sun Tzu 1913). check to Newstrom and Davis (2002) there be legion(predicate) striking differences across countries, just as there atomic number 18 some affect similarities. Clearly, residents of separately soil nurture their avow preferences for clothes, food, recreation, and ho utilize. In his research about home(a) purifications of sixty countries, Hofstede (1993) revealed that cultures differ in fivesome severalize factors namely, individualism/collectivism, power distance, perplexity avoidance, masculinity/femininity, and snip orientation.Among these factors, the Chinese energize the culture that comfort clarity and lay down the kind of orientation that tenseness apprise such as necessity of preparing for the future, the repute of thrift and savings, and the merits of persistence. Literatures on different cultures overly classify mainland chinaware as higher(prenominal)- scene culture which turn tails to emphasize personal relations, place value on trust, strain on non-verbal cues, and accent the need to ascertain to social needfully before product line enterprise matters (Newstrom and Davis 2002). acculturation is truly most-valuable in certain country such as China.Huntinghon (2000) as cited by Fellner (2008) defined culture as the values, attitudes, beliefs, and underlie assumptions prevalent among spate in a union. He stressed that culture is dynamic, interactive , and synergistic, and intermixes with all in all(a) the elements of the society such as duty and economic development (Huntinghon 2000 Fellner 2008). Huiping (2009) stated in her article entitled taking into custody Chinese culture leads to backing concern organisation success with Chinas growing signifi outhousece as an economic superpower meeting the Chinese psyche be generates in truth helpful and useable in business negotiations management of provider relations and many other business situations.As emphasized by Uthaisangchai (n. d. ), Chinese explanation and culture has impact on the way they do business and each(prenominal) of the many elements of the Chinese culture has a role to play in nowadays Chinese business world. In Hofstedes (1980) theory of individualism-collectivism as cited by Jones (2009), the individualism and collectivism dimensions differs on the degree a culture is committed to an in-radical such as extended family, guild or village.In the individ ualistic society, people are little attached to an in-group (that is, people are more(prenominal) self-centered and in pursuit of their feature self-interests). Meanwhile in the collectivist society, people are more attached to an in-group, that is the interests of the in-group come first. Jones (2009) as hearty noned from Hofstede and Bond (1988) that such value of collectivism correspondingly stems from a deep rooted, ingrained culture found on the traditional philosophy of Confucianism. Uthaisangchai (n.d,) gave accent of the teachings of Confucius in the development of the culture of Chinese.In the article entitled Connecting Confucianism, Communism and the Chinese agriculture of Commerce, Keller and Kronstedt (2005) explained that Confucianism is a real master(prenominal) component of the Chinese culture. In a Confucian society, e genuinelyone has a role to play, and the key descent is built around the family Chinese cultures value family connections and protectin g relationships (saving face).Developing family- interchangeable relationships takes time and patience, non merely a contractual deal base solely on money. If one has to do business in a Chinese culture, it is captious to understand and respect Confucian values (Keller and Kronstedt 2005). Keller and Kronstedt (2005) that emphasized the significance of connections-Guanxi. In Confusian-based society like China, guanxi or proper connections are more crucial than price, product, place, etc. correspond to Jones (2009), China is known for being loyal to their in-group and favoring them in business related decision.As presumption emphasis by Li (2008) as cited by Jones (2009), understanding the guanxi is critical for conducting business in China and it involves cultivating trust, believability and reciprocity. One way to understand heathen differences is through the concepts of high-context culture and low-context culture. The nonion of context can be unders tood as the social en vironment in which a business transaction takes place. Edward T. Halls theory of high- and low-context culture explains the powerful do culture has on converse.The countries classified as high-context cultures embarrass China, Korea, Japan, Middle East, Africa, Italy and South the States in which people are characterized as collectivists, relational, contemplative and intuitive. This implies that the people in these societies intrust emphasis on good relationship between members of the society. In relation to business transactions, the development of trust is a very important step. Hall (1976) argued that the people in high-context cultures prefer harmony in group and agreement for the achievement of individual members likewise individuals make decisions based on their feelings or intuition.The theory further emphasized that individuals focus on non-verbal cues, that is, words are not so significant in communication as compared to context rather, more is given emphasis on conte xt which embarrass facial expression, tone of voice of the speaker, posture, gestures, and family history and status of the individual. The communication in the high-context culture is depicted as formal and indirect, which suggests that ornate humility, flowery language, and apologies that are often too elaborated are common. Also, communicators in this symbol of culture do not forecast on language precision and heavy documents.Meanwhile, the countries classified as having low-context culture include Germany, North America, Finland, Canada, Norway, Denmark, and Sweden are linear, logical, action-oriented, and individualistic. Individuals in the low-context countries value facts, logic and they prefer directness. Finding solutions to problems involves identifying and enumerating all the facts and evaluating each of the options. Also, each decision is based on facts more often each discussion ends with an action. Communicators in this type of culture are anticipated to be concise , straightforward, and businesslike in conveying the action that is expected.According to Hall (1976), communicators have to be specific in the words used in communicating to be absolutely understood. every(prenominal) negotiations are always concluded with decisive contracts. Summing up the differences, on the one hand, high-context cultures tend to emphasize personal relations, place high value on trust, focus on nonverbal cues, and accent the need to attend to social needs before business matters. On the other hand, low-context cultures tend to examine cues more literally. Individuals tend to rely on write rules and legal documents, conduct business first, and value soundise and performance.With these classifications of cultures, it is apparent that when Americans negotiate with Chinese, a misadventure in negotiation if not a culture is more likely if the former group is not familiar with the latter. As noted by Minor and Lamberton (2010) from an interview with intercult ural communication expert ray Ruiz Countries in Latin American and Asia value the building of relationships, but each in their own unique way. before traveling to other country, I would suggest reading appropriate materials and speaking with unusual nationals residing in the U.S. in regards to the customs and business practices in their country of origin. I would as well suggest that, once in a foreign country, it is important to observe your legionss mannerisms and responses and respectfully respond in a like manner. Be well versed on acceptable and unimaginable behaviors. For example, when in Asia, do compliment and cope your impressions of their country. Do not decline any food or drink because this is viewed as an insult. In Latin America, do incur all meetings with friendly conversation regarding family or other social topics.Do not begin a meeting delving straight off into the business objective. The lesson many American business people fail to learn is that it is al l in the relationships (Minor & Lamberton 2010). In his article Doing line of credit In and With China The risks are great, but so are the rewards, Atkinson (2004) noted from Stephen Nelson, the follower and co-head of the China practice group for the Hong Kong-based virtue firm Baker & McKenzie, that when acquiring businesses in China, it is important to realize that there are perceived cultural differences.One of the important lessons in making business in China is that foreigners simply cannot enter a venture in China with save a cursory understanding of its footing and conditions. Atkinson (2004) cited an example of a US guild that recently decided to make an investment funds in China by background knowledge up a joint federation through its Hong Kong manufacturing agent. The US company send over $3 million worth of equipment, then came to us with documentation written in Chinese and asked Can you picture at this and tell us whether we authentically own 50 percent of this company? Akgunes et al (2012) identified several points to see to it for sure-fire negotiations. According to Zhao (2000) as cited by Akgunes et al (2012), negotiations become successful when the act parties are cooperative with one another this can be done by applying the cooperative Confucian maneuver. Also, for a western sandwich company like a US company, such company has to show that they have government support which is an indication that they are reliable, stable and credible to do business with.According to Fang (2006) as noted by Akgunes (2012), trust will lead to such(prenominal) better performance and being longanimous will be more just to you than any other attribute you major power possess. Bredin (1998) as cited by Akgunes (2012) also suggested that a foreign business negotiator should not give in to pressure from superiors to belt along up and complete the deal because can cause problems because the Chinese are not greatly concerned with the time dimensio n. thither are companies that also failed to successfully negotiate business deals with the Chinese.According to Fang (2006) as cited by Akgunes (2012), the most common reason for failure is that the Chinese firm lacks the funds to go through with a deal. Also, sending a low-ranking employee to make the negotiation will be viewed as very impolite and the Chinese may find it insulting and insincere, in this case failure is also approximately certain. Moreover, it is important to note from Sebenius (2002) as cited by Akgunes (2012) that Chinese law says that one cannot direct a contract unless both sides authorize dissolution.Fang (2006) as cited by Akgunes et al (2012) also emphasized that Failure to say no to a Chinese negotiator who is using a Sun Tzu-like strategy could be detrimental to the deal, but on the other hand, saying no to a Confucian gentleman could cause a loss of face. This also will be very harmful, if not fatal, to a successful deal. The Chinese have regional f ield of forces just like the United States and there are very different cultures, traditions and sometimes languages in these regions. non acknowledging these regions can cause you to have particular(a) success in one area and a complete failure in another (Fang 2006 Akgunes 2012). Conclusion In conclusion, like what Sun Tzu have said in his book The Art of War Know your enemy and know yourself and you will win all battles (Sun Tzu 1913). This means that for companies to be successful in making business deals, having the hood is not enough to close a business deal. Knowledge and understanding of the culture of the prospect business partner is very important.Other than this, Sebenius (2002) emphasized that culturl allegiances are often not as simple as they appear. Designing the decline strategy and tactics in reaching the right people, with the right arguments, will result to a sustainable deal. References Fellner, Amira 2008, Role of Culture in stinting Development Case Study of China and Latin America, Graduate instruct Theses, University of South Florisa Schoalr Commons, viewed from http//scholarcommons. usf. edu/cgi/viewcontent. cgi? article=1235&context=explosive trace detection Hall, Edward 1976, Beyond Culture.Hofstede, Geert 1993, Cultural Constraints in trouble Theories, Academy of Management Executive, pp. 81-94. Jones, Gwen 2009, Differences in the Perceptions of unethical Workplace Behaviors among Chinese and American line of products Professionals, Competition Forum, vol. 7, no. 2, pp. 473-480. Keller, G. & Kronstedt C. 2005, Connecting Confucianism, Communicsm, and the Chinese Culture of Commerce. Journal of Language for world(prenominal) Business, vol. 26, no. 1, pp. 60-75. Minor, Leslie & Lamberton, Lowell 2010, High-Context & Low-Context Cultures, viewed from http//www.cascadebusnews. com/business-tips/networking/154-high-context-a-low-context-cultures. Newstrom, JW. & Davis, K. 2002, Organizational Behavior homosexual Behavior at Work, McGraw-Hill Sun Tzu 1913, The Art of War. Uthaisangchai, Prasong (n. d. ), The Importance of Understanding Chinese Culture, viewed form http//www. bangkokbank. com/download/Week%2012%20Culture%20intro. pdf Huiping, Iler 2009, Understanding Chinese Culture Leads to Business Success, Canadian HR Report, vol. 22, no. 12, pp. 18.