The problems of racism are still apparent even in major US research Universities: The following was taken from a pamphlet handed out to business students
A Lonely Husky’s Guide to
Negotiations in China
(Disclaimer: China contains over a billion people. Not all of them will reflect these characteristics)
General Description of the Chinese Business Environment
Chinese view business as “war”, hence it is mostly a men’s fraternity, with tRickery, threats, bribery all considered fair game. The Chinese value group members, face saving and loyalty. Outsiders are looked upon as potential as threats. This is changing slowly, especially in the coastal cities.
Relationships
Loyalty and Reciprocity: Loyalty and reciprocity are a function of time. Since business is based primarily on relationship, the longer the relationship, the more loyalty is expected from business partners, and especially from associates. Reciprocity and loyalty goes hand in hand.
Collectivism: Overall, they are collectivists, focused on family and group. It’s slowly changing, however, especially in the coastal cities. Loyal to inner circle group members, and will defend group interests to the point of making group outsiders adversaries.
Face saving: Extremely important, especially their own face or that of their organization, group, family’s faces. They will give up a lucrative contract to save face.
Communication
High Power Distance: Especially between subordinate and bosses. Chinese managers want to negotiate only with those they view are in the same ranks as they are, and can refuse to talk to those they view as unequal to them in ranks. This is especially true with regards to older generations.
Harmony: They place a high value on the relationship and will avoid conflicts that will damage relationship. The Chinese are willing to skirt around laws and contracts since an explicit legal system still does not exist.
High Context: Meanings are based on the environment and the overall system. Communication tends to be indirect. For example, one partner rarely say no directly to another, choosing instead to use a subordinate. This is also congruent with conflict avoidance
Multilingualism: Majority of business is still done in Chinese, using interpreters when necessary. However, more are more companies, particular those in high tech or communication, staff English speaking negotiators.
Formality: Depends on the situation. Most business is done over dinner, so it is relatively informal. Nevertheless, serious negotiations can become formal and involve many protocols.
Human nature: Between group members, Confucianism and Buddhist values influence one to consider others as innately good. Yet, when dealing with outsiders, distrust is prevalent. Extreme competitiveness and treating business as war persist.
The Negotiation
Breakdown Rates: One out of 60-100 negotiations are successful. This can be contributed to the exploding economy, with many opportunities to deal. The urgency of striking a deal is not the same as in a more mature economy, since there are many alternatives
Time Orientation: The Chinese tend to look at the present and the near future (5-6 years) as their point of reference. They haven’t had a long enough business history to look back at the past. They’re not as focused on quarterly numbers.
Tolerance for Ambiguity: Due to vague legal system, anything goes in business. This makes relationships, instead of contracts, important. The Chinese are willing to adapt to frequent change if the relationship is good. They have become accustomed to this due to fast growing economy. The older generation tends to resist change.
Heterogeneity: Coastal cities have seen international trade expanding over the last 20 years, so they’re used to seeing and working with foreigners. The general population, however, are relatively homogenous with some ethnic minorities in Western and Southern China. The younger generation tends to be more westernized.
Corruption: Bribery, favors… is accepted since laws are relatively new. Considered just another tool in business, but that view is changing through increased dealings with Western companies.
Other Characteristic of Interest
Materialism: Nice cars, fancy office, dress, etc. all express status in China. Hence, potential business partners will be judged on these factors
Work ethic: The working environment for the young is very competitive, especially in private enterprise and foreign companies. Employees know that if they are not willing to do the job with 110% effort, then someone else may steal their job. Hard work and success bring respect to one’s family, or group. The Chinese have a very strong work ethic.
Gender equality: Still male dominated, but more women are entering the business world. They tend to see business as a men’s fraternity.