When it comes to conducting business, China is still a great place to be. Whether you like it or not, China’s business culture is something you need to be familiar with if you want to be successful there.
To help you understand Chinese business culture, we’ve compiled a list of “Dos” and “Don’ts.” You may find out how to conduct yourself properly during business gatherings and formal meals, as well as what to talk about (as well as topics you should avoid).
Even if you believe your company strategy is ideal, it might all be for nothing if you don’t grasp the business culture of the Middle Kingdom.
Business culture in China is a social construct that is always evolving, much like any other type of culture.) In recent years, several firms in China have even begun to implement more Western business techniques. A company’s adherence to the following cultural standards may be more important to some than to others.)
The first thing to know about Chinese business culture is the Dos and Don’ts.
DO Be aware of Guanxi
A Confucian notion has nothing to do with current business in China, you would wonder.
It turns out that the answer is a lot more than we expected. “Relationship” or “connections” are the direct English translations of the Chinese term “guanxi.” To be successful in China, you must establish business relationships with locals. This may be misinterpreted for corruption in Western nations. In China, on the other hand, it is a common practice.
Real-world instances of the Chinese concept of Guanxi
Don’t believe anything I say. Deng Feng of Northern Light Venture Capital and Michael Yu of New Oriental should be on your list of speakers. The two businessmen were out for a test drive in a BMW when they were involved in an accident that rendered the vehicle useless. According to Mr. Deng, despite the harm done, their guanxi was strengthened by the event.
Guanxi may be developed in a variety of ways in China. When it comes to formal gatherings like conferences or business meetings, it may be possible to connect with others. Alternatively, it might take place over a meal or a drink.
Guanxi is an essential part of Chinese business culture, regardless of how you cultivate it.
DON’T Ignore the Ranks
Another aspect of Confucianism is responsible for this.
For the most part, Chinese enterprises have a very strict view on the structure of the organization. When meeting with a Chinese business delegation, this may be relevant. Workers in China, for example, may be reluctant to speak before their superiors. Alternatively, they may wait to talk until they have received approval from the boss.
Hierarchy in Chinese corporate culture is shown in real-life instances.
I know from my personal experience working in a Chinese international trade firm that many staff follow highly formal processes when interacting with someone who is above them in the organizational hierarchy.
As an example, while reporting a personal matter to the manager’s office, workers will approach the management in a professional manner.
A Chinese business delegation may treat your employees in the same manner, so don’t be shocked. First, the Chinese team leader may introduce himself or herself to your employer before meeting the rest of the outside team. Chinese firms’ hierarchies are still very much in place.