China Business Models

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University Politehnica of Bucharest

Master Business Administration in Engineering

Business Cultural models and Diversity

China Business Models

Teacher : Ana Neagu

Student : Aghayeva Nigar

2015

China business models

If you are trying to expand your business in China, it is good to have a knowledge about Chinese business etiquette. Every year, more and more companies from all parts of the world are coming to China to do a business. In preparation for a business trip to China, the majority of Western businessmen "Arming" list of rules of etiquette - one or two pages, and advices, drawn from popular publications, "giving expensive gifts", "Speak short sentences", "bring a translator", "get dressed, like a funeral " .

Surface cumpliance of business rules helping to take a first step in business negotiating, but leading to a total collapse of negotiation in the future. The main reason of this is inability to understand the broader context of Chinese culture in general, and misunderstandings are so much that approaches seem incompatible. Those who is able to understand and take into account the cultural differences of civilizations, they will be able to develop a long-term and mutually beneficial trade with China.

American business culture experts counted four principles which generally characterized Chinese culture : China throughout its history (about 5000 years) it was and still it is largely peasant country. 2/3 of chinese living in the villages and cultivating mainly rice and wheat. China farm is a collective, public, and it is dependent on a group cooperation and harmony. In a conflict situation of interests, personal interest obeys to collective interest.

Now i want to speak about modern China. In recent years China has greatly strengthen its position in a global economy. Socio-economic achievements of the country forced the entire business community to study Asian market more closely, especially the eastern business etiquette.

Duet o the growth of this country, people are trying to adapt to the generally accepted rules of business, the European norms of etiquette. As for the Japanese, also for every Chinese enterprise prestige above their personal. They dont argue with their senior in rank, status and age. This is not just a flagrant breach of etiquette, but also the national tradition as a whole. In conversation with the boss, or a man of high social status, they say a lot of compliments and show the concern that they take away their precious time.

In Chinese families, the law says the norm to have only one child, so children here - is a great benefit and value.

Any form of physical contact between strangers, such as a hug, pat on the back or kissing is estimated negatively by the Chinese, especially when it comes to women. Help women, opening the door for them, or substituting a chair, and to touch her, it is not accepted at all. Women are not allowed to drink or to smoke in the company.

But in general, the Chinese people are sociable and friendly. To approach and talk to a stranger on the street is not considered to be something strange. While meetings, the Chinese shake hands, especially with foreigners, or greet each other with a slight nod. The seniors should greet first. The most common treatment in the business world, testifying to a special respect for the man - they use "Mr." or "Mrs." before the name. Also welcomed the use of official position or title of the Chinese, and then putting last name. To refer to older or unfamiliar people they approach with „You”. Title name is used only to close relatives and friends about the same age.

Attending and Conducting Meetings

Punctuality - Chinese expect from you that you will be as precise as possible when you arrive at the meeting. To be late, will be accepted as lack of seriousness, though for the first time they will not show you their displeasure. Inspite of this approach, the Chinese may be late to a meeting for 20-30 minutes and not to see anything wrong with that, this is the first lesson of duality relations.

Business cards are also part of the compulsory ritual communication. What is perceived in Europe as a convenient format, it is considered to be niggling in China as well- it is a double-sided business cards, where on one side all in English, on the other side - in your own language. I do not know why, but the Chinese believe that its ok if the card is in the same language. At acquaintance practiced exchange of business cards, often bilateral. To take and give a business card with both hands it is very necessary.

Another point related to business cards - in China, is accepted to indicate all the scientific degree of formal positions and things like that - to show the more is the better. Sometimes on the business cards full name occupy a small part, but the main volume is reserved for regalia. This directly contradicts the European tradition - on the other hand, the Chinese business cards for Europeans shun this approach and make it the standard way.

Last thing about the business cards - is using a writing characters . In China, there is a traditional letter, which made in Taiwan, Hong Kong and Macao, as well as a simplified set of characters that appeared as a result of reforms in the 1950s in mainland China. Today, in addition to China, a simplified set of characters supported also in Singapore and Malaysia. Business Card created with a simplified set is understandable almost everywhere, but in Taiwan it will be accepted like you are interested in mainland China. To avoid differences in perception, it is better not to try to create such a small, English limited cards.

Chinese are actively borrowing rules of other cultures and apply them in practice to show respect to the carriers of these cultures, but do not consider necessary to follow them. They have double standarts.

Chinese behaves like a European, if it is convenient for him, and turns into a typical Chinese, if it is more convenient to carry this style at the moment. In a cultural tradition of China, formality plays the main role.

From the first meeting you are expected to come in costume. Jeans and a polo shirt, even in 40-degree heat will be perceived as a lack of basic understanding of the rules. But you will not feel a displeasure about it from your partner's side. Shorts and sandals will be perceived as a subtle hint that you think you are master of the situation, where you allow yourself to behave in relationship this way to the weaks.

Another interesting cultural phenomenon - is a business name. Chinese, to facilitate communication they change their names to short English name. It may not match with their real names, but sometimes people in certain positions always have the same name. During correspondence you think you are dealing with one and the same person for many years, and then it turns out that all this time the company had changed several employees, but each new ones have the same name.

The Chinese culture is not accepted to show their emotions, especially in unfamiliar surroundings, so while dating, the Chinese behave restraint and even avoiding smiles. Subconsciously they notice foreigners as strangers and intruders. But in ordinary life, the Chinese are friendly and very welcoming.

Business etiquette is extremely important in China. The fate of negotiations and commercial projects depends on a apparent business etiquette. For each Chinese prestige of the company in which he works, is above his personal success. In China, because of the misdeeds of one member of the group - it may happen at work, collective or social organization - there is possibility to lose the reputation of the entire group, so in any situation, the Chinese is trying to behave decently.

If you are going to establish a business relationship with the Chinese company, it is better to use the services of intermediaries who will formally introduce your company and act as guarantors of transactions and sureties. The Chinese always seek verification of the reliability of firms which wants to work with them, so good reputation of your company will be very relevant and helpful for you to start your business. Clarification of issues and coordination of details are also carried out through intermediaries. Before your business trip to China, send your materials for the deal, but in chinese language .

While doing business with Chinese partners, harmonization of the various issues requires a lot of time and effort, more exactly angelic patience. It reminds of China's huge bureaucracy. Coordination of the various problems in the country still demands attention. Moreover, the Chinese are very scrupulous people who do not make any decision without a thoroughout study of all aspects of the case. Therefore, into the negotiations should be involved highly skilled experts who know all the intricacies of the issue and are good interpreters with knowledge specific terms. All this should be take into consideration while doing business with Chinese partners. Because China's business relationships are more formal.

Meetings are not being imposed in nightclubs, theaters, cafes and restaurants. The Chinese are very sensitive to the delimitation of business and personal communication, so try not to be trapped.

If you want to gain sympathy of the Chinese during business negotiations, dont go through personal communication, it is not necessary, as the Chinese see a company representative in their foreign partners, not a person/friend. A clear statement of the fact will give better results than welcoming, companionship. Nevertheless, on the other hand, the Chinese are eager to establish friendly informal relations with foreigners, interested in the family issues and children, and they are making it usually sincere.

Rank in business culture plays a huge role in China. Therefore, its better to present and lead the negotiations by the head of the company, not his assistant or deputy. business china communication

China business culture has no gender asymmetry - women as well as men can hold positions of responsibility.

Any important business meeting are usually planned a few months ago. After reaching an agreement, you can send the full information about the company and any documents relating to the upcoming talks. Being late for a meeting will be perceived as an insulting. Punctuality in China is considered a symbol of virtue. Therefore, it is good to arrive at the meeting a little before the appointed time.

In Europe, many people consider Chinese as scoundrels. Because the east approaches to business very differently from the European style. Its tactics, techniques, and effort to study partners are considered in the old part of the world by europeans. But actually we must consider these characteristics of Chinese culture as national tricks, and take them safely, use to our advantage.

Feigned indifference to the case or to the failure of commercial negotiations are noticed as chinese tricks. These techniques are often used only in order to get a partner excited and agitated and to make them to make concessions, especially in the price issue. The Chinese may even represent a controlled anger, again for the sake of testing the nerves of partners, and putting pressure on them to be ready to give up in the case of the price.

Showing roughness and slaver can also be used by the Chinese to achieve their goals. We need to try to be cool and patient, but to remember the importance of compromises to the Chinese side, and traditionally seeing in them the essence of the talks. In order to have embraced by China as a professional of our field, we must possess: perseverance, patience, care, perseverance and equanimity.

The Chinese are extremely suspicious in the business. To find a good business partner in the country is very difficult. The fact is that any business proposal from the European side is perceived by the Chinese as an offer trick and they want to calculate and wrap it into their favor. A good and seif way in finding business partners in China can be a translation or consulting firms working for many years in this market. Their experience can be the conductor of your intentions, and keep you away from the professional speculators, which in China is more than enough.

Wearing etiquette in chinese business culture is unpretentious - men's business suits characterized by dark colors and conservative cut. Women's clothes should not be bright. On business suits are allowed strict dress cut. Women's shoes should have a low heel.

In China is accepted to exchange souvenirs. And worth to give a gift to the entire company, not to a specific person. They serve and take any items with only two hands, it's a sign of respect. It is not nice to open the gift immediately at a place given by the chinese. Chinese people, particularly the elders, may initially refuse a present. In this case it is necessary to insist, maybe even more than once before the gift will be accepted.

Any sharp objects are symbolized as a breakup of relations in China, so try not to give these kind of objects. If you give flowers, their number should be even(1,3,5,7). Exclude white flowers while choosing a gift, because the white color - is the color of death. Gift best to paper red (red - the color of happiness in Chinese culture). When you are choosing a gift, try to avoid any association with the number 4 - this number is considered unlucky number.

Bibliography

http://www.dissercat.com/content/sovremennaya-delovaya-kultura-kitaya-sushchnost-i-spetsifika-na-primere-stratagemnosti

http://web.tepper.cmu.edu/jnh/businessCommunication.pdf

http://cyberleninka.ru/article/n/delovaya-kultura-kitaya

http://www.emeraldinsight.com/doi/abs/10.1108/CMS-Mar-2012-0052#

http://www.chinese-culture.net/html/chinese_business_culture.html

http://www.businessmodelsinc.com/business-model-innovation-in-greater-china/

http://www.tradecommissioner.gc.ca/eng/document.jsp?did=107932&cid=512&oid=32

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