Values and attitudes characteristic of the Chinese

National characteristics. The Chinese are quiet, reserved and never lose their temper. But at times they can seem chaotic and unfocused. It is collectivist, high-context, polychronic culture. A key organizing principle in Chinese society is Confucianism. It states that the family is the basic unit of society, and praised the virtues of hierarchy. All actions of the individual reflect upon the family, and filial devotion is of utmost importance. The virtues of kindness, propriety, righteousness, intelligence, and faithfulness have also been deeply revered. One must be preserved in relationships. These relationships are between ruler and subjects, between husband and wife, between father and son, between elder brother and younger brother, and between friends. Since all but the last are hierarchal, rank and age have historically been very important in all interactions.

Although reciprocity is an important principle in Chinese society (if you receive something, you give something back), companies investing in China need to ensure that potential partners are fully aware of the issue of intellectual property rights.

For centuries, China's civilization was more advanced in the arts and sciences compared with the West, so it is not surprising that its people continue to believe in their superiority, despite the social and military problems that afflicted the country in the 19th and early 20th centuries. The Chinese admire the work ethic, Confucian principles, the power of the extended family and sincerity. They appreciate patience, soft-spokenness, adaptability, humility and firmness. They do not appreciate boisterousness, impulsivity or anger, and they also dislike losing face, immodesty, disrespect towards elders and extravagance.

Duty, self-sacrifice, gentleness and wisdom are other traits admired by the Chinese. They consider that relationships are more important than tasks, and that the quest for virtue is more important than the search for truth. The Chinese do business with people rather than companies, so personal contact and loyalty are important. They value sincerity above all other qualities.

There is deep rooted respect for the older generation which still embraces the more traditional values and is not as profit orientated. Senior people are "paraded" at official events as grey hair symbolises influence and respect. Consequently, it is advisable to send senior staff to important events. This also "gives face" to the hosts by demonstrating that they are being taken seriously.

Cultural orientation. The Chinese are generally circumspect toward outside sources of information. They usually process data through a subjective perspective, derived from experience - unless they have been educated at a Western university.

Locus of decision-makings. In a centrally controlled economy, responsibility rests with government planners, but individuals are held responsible for their decisions within the system. Local decisions are made by the head of the collective, and members must behave accordingly. Collectives are insular, closed entities in which individual goals are subordinated to those of the collective. In the zones of free enterprise, businesses are experimenting with freedom from party rule but not from the collectivist way of thinking.

Sources of anxiety reduction. The family, school, work unit, and local community are the basic social structures that give stability to a person's life. There is a strong commitment to the extended family. The state, rather than religion, traditionally dictated the standards of wisdom, morality, and the common good. Obedience to parents is integral to a sense of security and stability. Maintaining harmony is vital. Faith in the Communist Party, which rules the PRC, is diminishing.

Issues of equality/inequality. Relative to the general population (over 1.3 billion), the number of people who are powerful members of the Communist Party is small. There has always been some concern about inequality in a system in which equality is the purpose, but being a member of the party is the only avenue to the position of authority. Free enterprise is purported to breed inequality and uncertainty, but there are rapidly increasing areas where it is allowed to flourish. Age is the only noticeable interpersonal indicator of inequality because it is still revered. Women are purported to be equal to men, but economic and social inequalities continue. The principle of respect in China means that women may be polite to senior men, which may be seen as sexist by some Westerners. Do not react to this. Chinese women have considerable authority at home, in politics and in commerce.

BUSINESS PRACTICE OF CHINA

China has a civil law system and its judicial decisions do not have precedential value. The Chinese Communist Party currently controls all aspects of China. There is no separation of the judicial, legislative or executive powers. Regarding the law and litigation, there is an old Chinese proverb: "It is better to be vexed to death than enter into a lawsuit." Chinese business is based on the development of good personal relationships over time, from which the business will grow. They are formal and quite ritualistic in business behaviour. They are quite reserved, and separate emotions from business. Experienced business travelers to China assert that patience is the most important skill needed to do business in this country. The Chinese are very good at figuring out when a foreigner is under pressure from a tight deadline, and they turn that to their advantage in negotiations. China is still a hierarchical society. Age is respected. When you send more than one representative to China, the oldest person should receive deference from the younger ones. The elder representative should even enter and leave the conference room first. When entering a business meeting, the highest-ranking member of your group should lead the way.

The concept of "face" can also be a major obstacle. It means that situations should be avoided where your Chinese partners are put in a situation where they "lose face" (for example by contradicting them or exposing them publicly). Chinese culture is based on the principle of "shame" (Confimcianism) as opposed to the Western culture which is based on the principle of "guilt" (Christianity). When there is a problem or something goes wrong, your Chinese partners are very likely not to tell you as this would bring shame upon them.

The principle of "Guanxi" (connections) is very important in China. It runs like a red thread through a person's life, starting at family level and continuing through school, university and employment. It is a system of favours and relationships that is hard to duplicate! “Guanxi” - sometimes termed as ‘value-laden relationships’ -which means the building up of a network of contacts to help you succeed in all aspects of life in China. Also, do not forget to mix business and pleasure. If you cultivate your contacts and make an effort to understand the culture and your partner, your connections will develop automatically. It is also important to remember that Guanxi influences a Chinese person's decisions. There are situations where social acceptance is more important than individual desires. For instance, an offer may be declined because accepting it would mean to upset the family or social circle. The Chinese are very sensitive to western criticism in politics and business.

Laws and regulations are generally complex and difficult to understand or interpret. Chinese law is advisory only. It is often up to the local authorities to interpret and apply them. This can lead to great uncertainty. A foreign company can also face the problem that business activities can be very restrictive. Companies need to apply for a business license and must not operate outside that license. There are many levels of regulations and permits, industry restrictions. The Chinese enjoy reluctance to formal legal proceedings.

Corruption is still wide-spread, although the government is starting to crack down. For large foreign companies it is less problematic, but for small companies it is much more difficult to resist. China is a bureaucratic country, so things are unlikely to happen fast. Do not show impatience or anger: this is seen as a serious character flaw. Keep your schedule light to allow for long meetings. Office hours tend to be 9am-5pm with a half day on Saturday, although a five-day working week is becoming more common. The key break is between noon and 2 pm, when there is a general lull in the working day. One should be aware of the fact that the Chinese write the date differently than most North Americans. The year is written first, then the month, then the day (e.g., December 3, 2010, is written 10.12.03 or 10/12/03).

It is advisable avoid traveling to China during the lunar New Year. Also called Spring Festival, this is China's most important, nationwide weeklong holiday. Tradition demands that every Chinese return to his or her traditional home during the lunar New Year. With so many migrants to the cities, this means that there are millions of trips taken by car, bus, train, or airplane during the festival.

Appointments. Punctuality is very important in China, not only for business meetings, but for social occasions as well. Lateness or a cancellation is a serious affront. Be sure to establish contacts in China before you invest in a trip. Before initiating meetins in China, it is advantageous to identify and engage a local intermediary. This person will help bridge the cultural and communications gap, allowing you to conduct business with greater effectiveness. The person may be able to leverage existing relationships, which could significantly shorten the time it takes until your potential partner is ready to do business with you.

Interpreters are often used in discussions, but never make the mistake of addressing the interpreter and not the boss. Allow for a moderate attention span of about 30 minutes when presenting. Stress the benefits of your proposal for China and for the bottom line. Remember that the Chinese rarely say 'no'. Instead they will hint at difficulties, so be sensitive to this. Show commitment and enthusiasm to your project, and repeat your key points several times. Don't assume that silence means acceptance, and avoid asking personal opinions.

Chinese teams are groups of specialists working under a leader, who may not himself be a specialist but will have links to the head of the company. Show respect to him and refer issues to him in the first place. Any one-to-one contact between members of your team and the Chinese should be authorized by the team leader first. The Chinese like to experience harmony and consultation. The working pace tends to be slow and methodological, and deadlines are regarded as flexible. Emphasize the moral and social aims of the project.

Negotiating. Agendas are adhered to in China, but expect slow, repetitious dealings: patience is essential. The Chinese like to establish general principles before moving onto detailed discussion. They also take the long view - sometimes extending over several generations. Be prepared to discuss problems in precise details at length to achieve total agreement, and be ready to understand their difficulties - these may be linked more to social matters or relationships than to the business. Do not push for information, and despite any irritation that you might feel internally, maintain a flexible but firm negotiation style. Your aim is to develop mutual trust in the long-term.

In general, truth is subjective, and one's feelings, along with a modified belief in the Communist Party line, are primary sources of the truth. Facts are accepted by younger Chinese, particularly within the burgeoning entrepreneurial sector. However, they still strongly consider the other two sources, and will not usually accept a proposal if it is in conflict with their personal feelings for the prospect.

Use short, simple sentences, and pause often to make sure that your exact words are understood. Expect to make presentations to different groups at different levels. Unless you understand the significance of different colors in China, use black and white for your collateral materials.

Foreign executives—especially those from the USA—have a reputation for impatience, and the Chinese will drag out negotiations well beyond your deadlines just to gain an advantage. They may try to renegotiate everything on the final day of your visit, and they may continue to try for a better deal even after the contract is signed.

Expect to make several trips to China before negotiations are final. The Chinese are cautious in business matters and expect a strong relationship to be built before they close a deal Unlike many Western organizations, the Chinese are not obsessed by achieving short term successes that may look impressive, but have not been fully thought through.

Chinese executives tend to establish contractual relationships based on trust and honor without any reliance on the enforcement powers of law. "A contract is considered unnecessary, sometimes offensive, when rules of loyalty and mutual obligation structure the business environment." They will frequently ignore the written contract and treat it as a mere formality. Even if a contract is ultimately signed, a signed contract means the beginning of a relationship, not the "be all and end all" document which controls the parties' economic relationship, as in the eyes of U.S. contract law.

The Chinese expect the business conversation to be conducted by the senior officials of each side. Subordinates may speak when they are asked to provide corroborating data, or a comment, but in general, they do not interrupt. Familiarize yourself with all aspects of China before you arrive. The Chinese appreciate Western visitors who demonstrate an interest in their culture and history. Be patient, expect delays, show little emotion, and do not talk about your deadlines. At the end of a meeting, leave before the Chinese.

Organizational structures in China are vertical. A manager will seek consensus from his team, but will take personal responsibility for decisions. One potential difficulty for visitors is that a manager's authority is often based on his wealth and family background, rather than purely on his competence at the job. All of this, together with language difficulties, makes it hard for visitors to read meetings and negotiations accurately. In addition, family businesses tend to belong to trade groups, which will also exert pressures.

4. CHINESE BUSINESS ETIQUETTE

Business cards. Business cards are important. Bring business cards with a translation printed (in Mandarin Chinese) on the reverse side. Gold ink is the most prestigious color for the Chinese side. Never place a person's card in your wallet or put it in your back pocket.

Business entertaining. Hospitality is an important tradition in China, and sharing the bill is unknown. You must reciprocate, however. Business lunches have become popular. Tea is always served in mugs with lids: never refuse. You will probably be treated to at least one evening banquet. Banquets at restaurants can be ordered in varying degrees of extravagance. Most banquets start between 6:30 and 7:00 p.m. and last for several hours. Business is not generally discussed during a meal. Never begin to eat or drink before your host does. Start by eating lightly, as there could be up to twenty courses served. Expect your host to keep filling your bowl with food whenever you empty it. Finishing all of your food may be an insult to your host, because it can mean he did not provide enough food. Leaving a bowl completely full is also rude.

Toasting is popular. At banquets, the host offers the first toast, and the ceremony continues all evening. It is acceptable to toast with a soft drink, but various alcoholic drinks will be available.

It is considered polite to sample every dish. The Chinese may even test your fortitude on purpose with exotic delicacies, like thousand-year-old eggs or marinated, deep-fried scorpions (completely intact with their stingers).

The Chinese use chopsticks for eating and a porcelain spoon for soup. Your attempts at using chopsticks will be appreciated When you are finished, set your chopsticks on the chopstick rest. Placing them parallel on top of your bowl or dropping is considered a sign of bad luck.

The serving of fruit signals the end of the meal. If you do not want refills of tea, leave some in your cup. Historically, women did not drink alcoholic beverages. If the business dinner is extremely formal (like a black-tie event), businesswomen should accept a drink if offered, take a sip, and leave it. However, at a less formal affair (like a trade association dinner), women can now be the drinking representative!

Good topics of conversation include Chinese sights, art and inquiries about the health of the other's family. Generally, conversation during a meal focuses on the meal itself and is full of compliments to the preparer. While the Chinese are not traditionally sports fans, their interest in sport has been increased by the Olympics. U.S. football is called "olive ball" in Mandarin Chinese because the ball is roughly olive-shaped.

PROTOCOL

Greetings. Introductions in China are courteous and formal, so expect to take a fair amount of time over them on your first visit. The highest-ranking member of your group should lead the way. The Chinese nod or bow slightly when greeting another person, although handshakes are common. Wait for your Chinese associate to extend a hand first. Visitors to factories, theaters, or schools may be greeted with applause as a sign of welcome. The usual response is to applaud back.

Titles/forms of address. The Chinese are sensitive to titles, so use them whenever possible (e.g. Director, Engineer), Do not address a Chinese person with the word 'comrade', a privilege reserved for Communist Party members. If you do not know a person's title, use Mr., Mrs. or Miss until you are advised otherwise. Names are listed in a different order from Western names. In China the surname comes first and the given names second. So Mao Tsedong was known as Chairman Mao, not Chairman Tsedong.

Gestures. The Chinese do not use gestures and strong facial expressions, and are not tactile, so it's not surprising that they are often said to be incomprehensive. One should avoid making exaggerated gestures or using dramatic facial expressions. The Chinese do not use their hands when speaking, and become distracted by a speaker who does. The Chinese do not like to be touched by people they do not know. This is especially important to remember when dealing with older people or people in important positions. Use an open hand rather than one finger to point. To beckon, turn the palm down and wave the fingers toward the body.

Gifts. Gift giving is a sensitive issue in China. While often in violation of Chinese law, gift giving is widespread. Avoid giving anything of value in front of others; it could cause the recipient both embarrassment and trouble. A gift from your company to the Chinese organization or factory is acceptable. Make it clear that the gift is on behalf of the whole company you represent and is for the whole group on the receiving end. Be sure to present the gift to the acknowledged leader of the Chinese delegation. A banquet is considered an acceptable gift. Your Chinese hosts will certainly give you one, and you should reciprocate.

When giving or receiving a gift, use both hands. The Chinese traditionally decline a gift three times before accepting; this prevents them from appearing greedy. Continue to insist; once they accept the gift, say you are pleased that they have done so.

Gifts of food are always appreciated by Chinese, but avoid bringing food gifts with you to a dinner or party (unless it has been agreed upon beforehand). Stamps are appreciate gifts if your associate is a collector (stamp collecting is popular in China). Older Chinese associate all of the following gifts and colors with funerals—avoid them: straw sandals, clocks, handkerchiefs (they symbolize sadness and weeping), gifts (or wrapping paper) in which the predominant color is white, black, or blue. If possible, wrap gifts in red, a lucky color. Pink and yellow are happy, prosperous colors, and are also good choices. All business negotiations should be concluded before gifts are exchanged.

Great gifts: company pens, ashtrays, paperweights, books, whisky. Avoid giving: flowers, chocolates and especially knives or clocks, which represent death or the end of a relationship. Money should be given in even numbers.

Dress. For business, men should wear conservative suits, shirts, and ties. Loud colors are not appropriate. Women should also wear conservative suits, with relatively high-necked blouses and low heels—their colors should be as neutral as possible. At formal occasions, evening gowns are not necessary for women unless the event is a formal reception given by a foreign diplomat. Men may wear suits and ties.

Casualwear is still somewhat conservative. Revealing clothing may be offensive, but jeans are acceptable for both men and women.

 

Five Ways to Succeed	Five Ways to Fail
Be sincere: it is the quality most prized by the Chinese	Expect quick results
Do favours: it is a great way to build relationships and they will be returned	Lose your temper or get impatient - it shows a lack of control
Show respect to senior people and older people	Fail to keep regular contact
Spend time building the relationship	Be extravagant or immodest in your dress, behaviour or personal habits
Reciprocate: if someone asks for your help, help them	Ignore Chinese social etiquette -especially at mealtimes

 

 

LECTURE 6