Verner D. Worm Professor of Chinese Business and Development Asia Research Centre Copenhagen Business School

Differential mode of Association in Chinese and western societies Western society is represented by straws collected to form a haystack, Chinese society is represented by ripples flowing out from the splash of a rock thrown into the water (i.e. discrete categories of social relationships).

We see things differently, but don’t realize it Ancient Greek Personal freedom Analytical approach Ancient China In-group harmony Holistic approach

Yin Yang 阴阳 Ying-yang are classifications of relations. They were continually in flux, each growing out of the other. Any giving subject might be designated yin in one set of relations and yang in another.

Chinese traditional values and thinking mode (Some people think more traditional than others) 1. The principle of contradictions Opposing propositions may be simultaneously true 2. The principle of change Life experiences are unpredictable and in a constant state of flux 3. The principle of Holism All things in the universe are interconnected

Communication in negotiation Employ overseas Chinese for debriefing The Chinese hear the words – not the context Read Chinese faces Emphasize what is in it for the Chinese side Closed versus open communication style Firm flexibility

GOVERNMENT – Western company Chinese Government Technology transfer More local content New Products R & D in China Inland production Export Western Multinational Equity control Management control Cheap well-educated labor force Tax reduction Relaxation of rules Local sales Management transfer

Pre-negotiation in China Learn about the Chinese counterpart Learn a few words Chinese Prepare slides in Chinese What is the negotiation history Build good relation to local government Prepare and bring gifts Decide on business standards

Negotiating Skills in China Holistic approach Understand Relationship building Become comfortable with ambiguity Be patient Do not be aggressive Be mindful of Chinese negotiating stratagems

Negotiating Skills in China Become comfortable with Chinese pragmatism Adjust to Chinese time preferences Familiarize yourself with the bureaucracy Learn to work with Chinese people Learn to build trust Create win-win situations

A Danish and a Chinese account of learning through cross-cultural collaboration The initial collaboration phase was characterized by many conflicts and many misunderstandings, some of them probably due to different understandings of work and work-life-balance, different approaches to management and people, and different communication styles and use of communication media.

A Danish and a Chinese account of learning cross-cultural collaboration The Dane and Chinese stress that they have come to understand each other’s ways of thinking and acting to an extent that the conflicts have diminished. The Danes acknowledges that the Chinese has been his mentor and that he has learned the Dane not only about market conditions, but also about social relationships in China, including face issues. The Dane expressed willingness to adapt to Chinese work habits to a certain extent, but he also had the ambition gradually to learn his subordinates to change their routines and reorient towards a more strategic thinking and planning.

Find ways - we are all human beings Find something you like about the other culture I like Chinese persistence, frugality, diligence, hospitality, friendliness etc. I like Chinese way of life, medicine, massage acupuncture, food, film, hotels etc. I respect Chinese way of life (not going to extremes), holistic approach, but I do not understand entirely

Verner Worm & Tianshu Liu, CBCI Three generations Red generation (ideologically driven) Green generation (materially oriented) Yellow generation 2000 – Attuned to international events Internet and mobile phone savvy Strong sense of national pride Willing to experiment with new flavours & products

Cross-cultural cooperation between Europe and China We can learn about its other’s culture or even better from each others culture, but it is difficult to understand the other party. Our values are fixed when we are 10 years old. We can ignore cultural differences (culture is not important in communication. The others are wrong.) Will result in conflicts Most of us are somewhere in between!!

Thank you! Time for questions Verner Worm & Tianshu Liu, CBCI