Chinese Culture: The Importance Of Doing Business In China

Decent Essays
China is one of the leading forces in our global market. It is more than likely at some point Americans will have to conduct business with the Chinese. It is important to understand the cultural differences, different values, and proper etiquette when conducting business in China as an American or it can result in a loss of a potential market that would have been beneficial to the American economy. According to Graham & Lam (2003) “The root cause: a failure on the American side to understand the much broader context of Chinese culture and values, a problem that too often leaves Western negotiators both flummoxed and flailing” (p. 71). This suggests that Americans can solve the main reason for loosing potential business partners in China by …show more content…
In Chinese culture it is not only important to be prepared, but to bring handouts for all potential business partners so they can follow along; this may mean bringing over 20 copies of the presentation. In America is it preferred one gets right to the point in a meeting, however, in Chinese culture is it recommended to provide small talk prior to the meeting to establish a relationship. Relationships in the Chinese culture are very important; they would rather establish a relationship that involves trust, and loyalty than only have a business relationship they are skeptical about. This does not mean the personal relationship between Chinese and Americans is only importance; this means in order to establish a business relationship Americans must also be able to establish a personal relationship. Social customs in the Chinese culture stems from more than the conversation, Americans may be able to communicate efficiently but it will only be believable in how they portray it through their body language. As discussed before, intermediaries are hired to be a part of the business meeting in China. Body posture should always be formal and attentive, and be consciously aware of body language and movements. Americans must remain composed and put together to establish their credibility (Today’s Translation, …show more content…
American culture values time. Americans may want to arrive early to a business meeting to demonstrate how important promptness is in their culture. However, according to Todays Translation staff (n.d) “people in China usually enter the meeting room in hierarchical order” so being conscious of the cultural differences in time, may save the confusion of who is in charge of the meeting, because the Chinese “will assume that the first of you walking in the room is the head of the delegation” (para.6)

Company Loyalty
Basic cultural differences and ways of thinking can affect how business is conducted. Fig 1. Interviewee’s cultural influence on decision making, shows when Chinese-Americans were asked which cultural values affect their decision making process 60 percent of them said company loyalty, 20 percent said trust/loyalty, and 20 percent said ethnocentrism. This suggests that company loyalty, and loyalty in general makes up 80 percent of the samples cultural value that affects their decision making. Knowing this value when conducting business in China will help in how Americans approach business

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