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International Business Culture


International Business Culture Introduction to China---- by Angela Yang Yaung Qiuhong) * When you are talking about China, what pop up to your mind ... – PowerPoint PPT presentation

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Title: International Business Culture

International Business Culture
  • Introduction to China
  • ---- by Angela Yang
  • ???(Yaung Qiuhong)

  • When you are talking about China, what pop up to
    your mind?

9,596,960 square km/3,705,392 square miles,
Density350/square mile 3,718,797square
miles(USA) Density 80 /square mile(USA)
Population 1,321,290,000 (USA 303,150,000) 56
ethnic groups/ The Han people make up 92 of the
country's total population
Former Vice Prime Minister Deng Xiaoping visited
USA in 1979. It was the first time for PRC
leader officially visiting USA
Prime Minister Wen Jiabao
President Hu Jingtao
  • Which of the followings are ancient Chinese
  • Paper money
  • Compass
  • Clock
  • Gunpowder
  • Paper
  • The first seismoscope

  • Some of the following English words originated
    from Chinese?
  • Dim sum
  • Lychee
  • Won ton
  • Ginseng
  • Yam

Chinese zodiac signs are important
What animal sign were you born under?
Chinese zodiac signs are important
  • 1965
  • 1977 1989

1952 1964 1976 1988
1951 1963 1975 1987
1950 1962 1974 1986
1949 1961 1973 1985
1948 1960 1972 1984
1954 1966 1978 1990
1955 1967 1979 1991
  • 1968
  • 1980 1992
  • 1969
  • 1981 1993

1958 1970 1982 1994
1959 1971 1983 1995
Chinas History Timeline
Date Dynasty
2000-1500B.C. Xia The first prehistoric dynasty
1700-1027B.C. Shang
1027-771B.C. Western Zhou
770-476 B.C 770-221B.C. 475-221 B.C. Eastern Zhou Thinkers and Philosophers Confucius, Lao Zi, Zhuang Zi and Sun Zi
770-476 B.C 770-221B.C. 475-221 B.C. Spring and Autumn Thinkers and Philosophers Confucius, Lao Zi, Zhuang Zi and Sun Zi
770-476 B.C 770-221B.C. 475-221 B.C. Warring States period Thinkers and Philosophers Confucius, Lao Zi, Zhuang Zi and Sun Zi
221-207B.C. Qin The first feudal autocracy
206B.C.-A.D.9 Western Han Predominant ethnic group in China named after the dynasty Silk Roads
A.D. 9-24 Xin
A.D. 25-220 Eastern Han
A.D. 220-280 Three Kingdoms

Chinas History Timeline
Date Dynasty
A.D. 265-316 Western Jin
A.D. 317-420 Eastern Jin
A.D. 420-588 Southern and Northern Dynasties
A.D. 581-617 Sui
A.D. 618-907 Tang
A.D. 907-960 Five Dynasties
A.D. 907-979 Ten Kingdoms
A.D. 960-1279 Song the first government in world history to issue paper money
A.D. 916-1125 Liao
A.D. 1038-1227 Western Xia
A.D. 1115-1234 Jin
A.D. 1279-1368 Yuan
Chinas History Timeline
Date Dynasty
A.D. 1368-1644 Ming
A.D. 1644-1911 Qing The last feudal dynasty
A.D. 1911-1949 Republic of China
A.D. 1949 Peoples Republic of China Socialist society

Part of Terracotta Army---The mausoleum of
(No Transcript)
  • The Silk Roads
  • Merchants traveling between China, Central Asia
    used overland routes. The most famous were called
    the Silk Roads. This network of routes eventually
    stretched from China over 4,000 miles to
    Mediterranean Sea, and linked China to India, the
    Middle East, and the Roman Empire.

Silk Road
  • Fundamental
  • Beliefs and Values
  • Confucianism
  • Taoism
  • Buddhism
  • Social Structures
  • Family
  • Networks
  • Ethnicity
  • Relationship Rules
  • Filial Piety
  • Collectivism/ Face
  • Trust and Reciprocal

Hierarchy, Respect superior, Avoid direct
conflict, Face is important, Guanxi, Family
business, Perspective on Time, Negotiation on
(Redding, G. 1990, The spirit of Chinese
Fundamental Beliefs Values
  • Confucianism
  • First - family (or family clan) Second -
    community. The individual is unimportant.
  • Confucianism stresses the importance of avoiding
    conflict and emphasizes correct behavior
  • Confucianism is a social code based on morality
    rather than laws
  • Taoism
  • Wu-wei, or active not-doing
  • Buddhism
  • reincarnation

Business Culture
  • China's ethical system involves respect for
    superiors, duty to family, loyalty to friends,
    sincerity and courtesy.
  • Age brings increased respect and status.
  • Hierarchy exists in organizations
  • Conducts
  • Respect elders or superiors
  • Be modest, sincere and courteous

  • It is very important for Chinese people to
    "maintaining face" in everything they do.
  • The concept of shame and honor are more important
    in China than in US
  • Conduct
  • Never insult or openly criticize someone in front
    of others.

  • Who you know is more important than what you
  • What is guanxi?
  • Relationship
  • Connection
  • Network
  • Guanxi does consist of connections, but more
  • specifically of connections that are defined by
  • reciprocity and mutual obligation.

Various Levels of Guanxi
Nonfamily affiliates
Extended Family
Immediate Family
Close Friend
  • How to build and maintain Guanxi?
  • Get intermediary
  • Get common ground with Chinese
  • Showing your interest in his/her experience
  • Showing your interest in his/her culture
  • Learn some mandarin
  • Study using chopsticks

  • How to build and maintain Guanxi?
  • In some cases, Guanxi may last for life with
    little or no maintenance.
  • For the western businessperson, the key is
    continued interaction.
  • Gift-giving, entertainment at banquets,.
  • Nurturing long-term mutual benefits
  • Nourishing personal relationships.
  • Cultivating trust

  • The relationship you develop with a person
    represents your relationship with his or her
    entire company.
  • Guanxi is nurtured and maintained through
    relationships among individuals not

  • There is some ethical issues or illegal issues
    existing in managing Guanxi.
  • In recent years, Wal-Mart, Lucent Technologies,
    IBM, Siemens, Carrefour, Diagnostic Products and
    Morgan Stanley have also been caught up in
    bribery scandals in China

Family Business
  • Family-directed operation
  • The dominant family head
  • Enduring roles and family obligations
  • Very flexible in every aspect of business

Chinese perspectives
  • Signing a contract is not an end of the
  • Time is cyclical and elastic
  • Schedules should be changed to accommodate new
  • Short notice is acceptable

Addressing Chinese
  • Family name comes first
  • Address a Chinese by surname with title
  • President Hu, Chairman Mao, Director Lu
  • Skip vice, deputy and associate
  • Married women retain their maiden names.

Gift giving
  • Dont give a clock as a gift
  • Dont give a green hat to a man as a gift
  • Some unlucky number should be avoided
  • such as 4. Chinese lucky numbers are 6, 8 or 9
  • Red represents prosperity and luck
  • Golden represents harvest and wealth
  • Generally white and black are not right color for
    wrapping gifts

How to use chopsticks
Rest one chopstick between your middle and ring
fingers. Use your thumb to stable it. Rest the
other one between your middle and index fingers.
Also use the thumb to stable it Level
chopsticks. Pick up the food with the only
movement of the upper chopsticks, keep the lower
one stationary at all time.
Chopsticks Etiquette
  • Dont point your chopsticks towards others
  • Dont insert your chopsticks in the bowl upright
  • Don't beat your bowls while eating

  • Tung, R. Yeung, I., (1996) Aching business
    success in Confucian societies the importance of
    guanxi(connections). Organizational Dynamics.
  • Redding, G,. (1990)The Spirit of Chinese
    Capitalism, Walter de Gruvter , New York
  • Chen, M.,(2001) Inside Chinese Business --- A
    guide for managers world wide, Harvard Business
    School Press
  • Dahles, H. Wels, H. (2002) Culture ,
    Organization and Management in East Asia Doing
    Business in China, Nova Science Publishers, Inc.
    New York
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