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Assignment Questions

Chinese business culture

PART 1
Watch the China business video at the following link.

http://www.kwintessential.co.uk/intercultural/chinese-business-culture.html

Discuss what cultural adjustments Americans and Chinese business persons would need to make for conducting successful business with each other

PART 2
Then comment of the following 2 questions. Please respond separately

1. The first thing that American and Chinese business persons need is cultural awareness of the country they are dealing with. Also, it is so important to understand that not everyone acts or reacts the same way we personally do. There are several adjustments that need to be made based on the cultural differences talked about in the clip. The Chinese are a collectivist nation and are in general more dependent on their organization, while the US is an individualist nation and business people are more independent, decision making takes much longer with the Chinese than they would normally be used to. US business people need to understand that doing business with the Chinese takes time and patience. Another reason that performing business with the Chinese takes a lot of time and effort because, the Chinese put a lot more emphasis on building relationships and trust rather than getting right down to business. Americans are more results driven and want business to get right down to business. This is evident in the fact that contracts are viewed differently, in the US they are binding but in China they really don’t carry any obligation, instead they are seen as more of a relationship building step. One thing that American business people need to be very careful with is that they do not joke around or use any sort of horseplay. The Chinese find this very insulting and they may lose face among their co-workers.

2. Conducting business in China is a unique situation which must be accomplished in a manner that is sensitive to the Chinese way of doing business. Operating within the Chinese culture involves relationship building, networking, and not forcing negotiations immediately (Chinese Business Culture). This is often in stark contrast to the methods employed here in the Western world. In addition, there exists a hierarchal group mentality rather than an individualistic desire to do well for oneself first.
Companies must endure protracted negotiations often spanning several years (Daniels, Radebaugh, and Sullivan, 90).Trying to finish a deal early in the negotiation process is seen as having bad faith in the process and the person across from you at the negotiating table. Rather, a commitment to a long-term relationship is the appropriate method of doing business in China. In fact, if contract terms are heavily advanced early in the process, Chinese executives may in fact agree to the terms simply out of respect for their counterpart with no intention of ever fulfilling the initial terms of the deal. It is the personal relationships that define willingness to do business in China, not a mutually agreed upon set of contractual restraints or terms. As a result, it is crucial to expect and be committed to building a solid foundation of trust and mutual respect before advancing with serious negotiations.

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