International Business CultureInternational Business Culture

Introduction to ChinaIntroduction to China

---- by Angela Yang

杨秋红（ Yaung Qiuhong)

• When you are talking about China, what pop up to your mind?

●Beijing

9,596,960 square km/3,705,392 square miles, Density:350/square mile

3,718,797square miles(USA) Density: 80 /square mile(USA)

●Xian

Guangzhou●

●Lhasa

●Urumqi

●Shanghai

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

President Hu Jingtao Prime Minister Wen Jiabao

Former Vice Prime Minister Deng Xiaoping visited USA in 1979. It was the first time for PRC leader officially visiting USA

• 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

1954 1966 1978 1990

1955 1967 1979 1991

1956 19681980 1992

1957 19691981 1993

1958 19701982 1994

1959 1971 1983 1995

1953 19651977 1989

1952 19641976 1988

1951 19631975 1987

1950 19621974 1986

1949 19611973 1985

1948 19601972 1984

Date Dynasty

2000-1500B.C. Xia The first prehistoric dynasty

1700-1027B.C. Shang

1027-771B.C. Western Zhou770-476 B.C

770-221B.C.

475-221 B.C.

Eastern ZhouThinkers and Philosophers Confucius, Lao Zi, Zhuang Zi and Sun Zi

Spring and Autumn

Warring States period

221-207B.C.Qin The first feudal autocracy

206B.C.-A.D.9Western Han

Predominant ethnic group in China named after the dynastySilk Roads

A.D. 9-24 Xin

A.D. 25-220 Eastern Han

A.D. 220-280 Three Kingdoms

China’s History Timeline

China’s History TimelineDate 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 the first government in world history to issue paper money

A.D. 916-1125 Liao

A.D. 1038-1227 Western Xia

A.D. 1115-1234 Jin

A.D. 1279-1368 Yuan

China’s History Timeline

Date Dynasty

A.D. 1368-1644 Ming

A.D. 1644-1911 Qing The last feudal dynasty

A.D. 1911-1949 Republic of China

A.D. 1949 People’s Republic of China 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 ValuesConfucianismTaoismBuddhism

Social Structures Family Networks Ethnicity

Relationship Rules Filial Piety Collectivism/ Face 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– NetworkGuanxi does consist of connections, but more

specifically of connections that are defined by

reciprocity and mutual obligation.

Immediate Family

Various Levels of Guanxi

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 chopsticksRest 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