1. Chinese Business Culture
19 March 2018 by
Sigrid Brevik Wangsness

2. Gesteland: Chinese Business Behavior
Group B:
RF, HC, Formal/Hierarchical, Variably Monochronic, Very Reserved
Which other cultures are in the same group?
How does Gesteland describe most Asian cultures?
Gesteland: Nat’l culture vs. business culture

3. How useful are Cultural Guides: How to Do Business with the Chinese?
No doubt: Easy to make mistakes – many challenges
But how helpful are the Do’s and Don’ts?
How crucial is it, for instance, that you present your business cards with both hands or avoid having too firm a handshake?
Learn as much as possible about
the history/culture before meeting
your Chinese business partner

4. Chinese history
«An appreciation of China’s history is central to any understanding of Chinese culture»
Ethnocentrism and pride
The era of national humiliation
Mao’s China:
Immense personality cult despite
historical brutality
1978: Deng Xioaping:Reform and Opening up

5. Recent Chinese history
The New China: From early 1980s.Market reforms
2001: China member of the WTO
The world’s second largest economy
The world’s largest surplus on the balance of payments
The world’s largest currency reserves
The worlds largest recipient of foreign direct investments
The world’s largest population (1.3bn)

6. China today Current leader: Xi Jinping (may sit for life)
China’s most powerful leader since Mao
Autocratic/ authoritarian government:
No opposition, the CCP in control,
government repression of human rights
Self-protective leadership style also in government? ( cf. GLOBE study)

7. Cultural Values Guanxi
How important is it, and how different is it from the social networks we have in Europe?
Face
Give face, save face, lose face is also an
essential part of Chinese business culture:
Show anger with a smile, polite refusal (not “No”)
Communication
Hierarchy

8. Contemporary Chinese Culture - rooted in Confucian ideals
Confucianism (Confucius, BC)
How does Confucianism affect Chinese daily life (cf. the rest of East Asia)?
Family-centred / relationship-oriented
Collectivism (not individualism)
Human relationships in society =hierarchical
Virtues: humanity (Ren), righteousness (Yi), friendship, wisdom, trustworthiness, moderation
=> HARMONY & BALANCE=> indirect comm.

9. Contemporary Chinese Culture
Alongside Confucianism, Taoism and Buddhism are important influences on contemporary Chinese culture, reinforcing the values of Confucianism:
Taoism: the harmonization of
opposites male and female,
man and nature
Buddhism: ethical behaviour,
wisdom, the middle way

10. Contemporary Chinese Culture
Five words to understand the nature of contemporary Chinese culture:
Guanxi=relationships/personal contacts/network
Renqing = doing favours for each other
Li = courtesy/politeness/doing the proper thing
Keqi = guest –> behave like one, respect the host
Mianzi = face –> shameful to lose face, lose one’s credit/good name/ reputation

11. Nationalism Linked to negative historical experiences
Increasingly about national
pride
Patriotic campaigns by the government
Collectivism (Confucianism)
Xi’s «Chinese dream»: Wealth, Strength, Happy Life, Patriotism, Communism

12. Socializing Respect – interest in Chinese culture
“To do business in China you
need to know a lot more than just business”
Their sense of pride – avoid politically sensitive issues (remember the ice front between Norway and China)
Drinking
Karaoke
Gift giving

13. Joint Ventures: Choosing a Chinese Business Partner
Major language barriers and cultural differences: Need for local knowledge/ network
China is a global power, but NOT a homogeneous market (vs. Gesteland)
Hiring your own interpreter + need for a local consultant with good English skills
The role of Hong Kong
The position of Taiwan

14. Challenges When Establishing a Business in China
Corruption
How to draw the line between corruption and doing favours for friends?
What if your joint venture partner has a second
agenda or there is widespread corruption within
that company? (Intellectual property rights…)
The Chinese government’s fight against corruption – and against
political opponents…