Example of Racism disseminated by a major university.

General – Chinese view business as “war”, hence it’s mostly a men’s fraternity, with tRickery, threats, bribery all considered fair game.  Value group members, face saving, loyalty, and treat outsiders as threats.  This is changing slowly, especially in the coastal cities.  The younger generation are more westernized. 

a.         Homogeneity vs. 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.  There are ethnic minorities in Western and Southern China, but for the most part, theirs is a culture of homogeneity.  Younger generation are more Westernized.
           
b.         Reciprocity vs. Loyalty
            Loyalty and reciprocity are a function of time.  Since business are 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.

c.         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.

1. 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.

e.         Individualism and 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.

f.          Self-construal

g.         Buyer vs. seller orientation
           
h.         High vs. low context culture
            High context, meaning based on the environment and the overall system, communication are indirect, e.g. a partner rarely say no directly to another, choosing instead to use a subordinate, also congruent with conflict avoidance

i.          Multilingualism
            Majority of business is still done in Chinese, using interpreters.  More are more companies, however, particular those in high tech or communication, have English speaking negotiators.

j.          Materialism
            Nice cars, fancy office, dress… all express status in China, hence a business partner can be judged on these factors

k.         Work ethic
            Very competitive working environment for the young, especially in private enterprise and foreign companies.  Hard work and success are viewed as bring pride to family, group…

l.          Human nature
            Unclear here, Confucianism and Buddhist values consider others as good, hence the focus on relationship, yet the extreme competitiveness of business, e.g. treating business as war, lead to distrusts.  Overall, distrust is prevalent of outsiders, while there’s more trust among group members.

m.        Trust vs. Suspicion
            Trust insiders of group, distrust outsiders.  This is regardless if outsiders are foreign or Chinese.

n.         Formality
            Depends, most business is done over dinner, so it’s relatively informal.  But serious negotiations can get very formal, with many protocols

1. Tolerance for Ambiguity

Due to unclear legal system, anything goes, making relationship, instead of contracts, important.  They are willing to adapt to frequent change (due to fast growing economy) if the relationship is good.  Older generation resist change a lot more.

p.         Power distance
            High, 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 true mostly for older generations

q.         Harmony (tolerance  for conflict)
            Value relationship, avoid conflicts that will damage relationship.  Willing to skirt around laws and contracts since a good legal system still doesn’t exist

r.          Face saving
            Extremely important, especially their own or their organization, group, family’s faces.  Will give up lucrative contract to save face

s.          Gender equality
            Still male dominated, but is changing.  Tend to see business as a men’s fraternity

t.          Masculinity vs. feminity
            Masculinity, aggressive, see business as war

u.         Religion
            Confucianism and Buddhism

v.         Customs
           
w.        Pessimism vs. Optimism – a bit of both, depending on whether the relationship is good

x.         Nonverbal differences – eye contact, distance when relationship is new, but closer when old relationship

y.         Corruption
            Bribery, favors… is accepted since laws are relatively new, considered just another tool in business, but it is changing