business culture china

8/8/2019 Business Culture China

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Asia Interprise Leap, Spectaris, October 15, 2007, Berlin

Business Culture China


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Always remember:

Mostly generalisations!and:

Chinese are also human!


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Content:

1. Travel and general know-how

2. Intercultural differences

3. Communication


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History21. - 17. century BC: Xia-Dynasty17. century - 1025 BC: Shang-Dynasty1025 - 256 BC: Zhou-Dynasty

221 - 206 BC: Qin-Dynasty206 BC -220 AC: Han-Dynasty220 - 280: 3 Kingdoms280 - 420: Jin-Dynasty420 - 589: Northern and Southern Dynasties

589 - 618: Sui-Dynasty618 - 907: Tang-Dynasty907 - 960: Five Dynasties960 - 1279: Song-Dynasty1279 - 1368: Yuan-Dynasty (Mongol occupation)1368-1644: Ming-Dynasty1644-1911: Qing-Dynasty (Manchu occupation)1911 -1949: Republic of Chinasince 1949 Peoples Republic of China


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Political System

Party State

STATE COUNCILMinistries

Commissions

CENTRAL MILITA-RY COMMISSION

State/Party

CC-SECRETARIATSecretary GeneralCC-Departments

NATIONAL PEOP-LES CONGRESSCentral Committee

POLIT BUROStanding CommitteeCentral Committee

PRESIDENTOF THE PRC

Provincial Party Committee

City Party Committee City Government City Peoples Congress

Provincial Government Provincial Peoples Congress

District Party Committee

Village Party Committee

Township Party Committee

County Party Committee

District Government

County Government

Township Government

Village Government

District Peoples Congress

County Peoples Congress

Township Peoples Congress

Village Peoples Congress

order

electionElectorate


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General know-how

China country with long history, culture and tradition ->nationalism

China not country but rather continent (i.e. not onemarket, but many different ones)

In the East (coastal areas) highest population density,modern cities, high traffic density, cosmopolitan

China is changing rapidly, therefore often tradition andmodernity together / right next to each other

China not either-or but as well as


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Money/Credit cards Chinese currency Renminbi Yuan (RMB) not convertible,

not available outside China Money changing at airport, large hotels or Bank of

China, EUR, USD, Pound and traveller cheques withoutproblem, but always bring passport

Have small change ready, often even 50 RMB notes aredifficult to change

In exclusive hotels, restaurants and shops credit cards(VISA, AmEx, Master, DC) accepted

ATMs in banks and often hotels, but check symbols onyour credit/debit card for conformity of systems

1. Travel know-how


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Currency 1 Renminbi Yuan(RMB, kuai) = 10 mao(10jiao) = 100 fen

RMB often called kuai, abbreviation or Y Notes at 1, 2, 5, 10, 50 and 100 RMB. Even forjiao and

fennotes, but today very seldom. Old and new notes stillcirculating.

1 about 10 RMB, 1 about 15 RMB

1. Travel know-how


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Safety

China safe country for men and women Foreigners are favourably treated by Chinese and

security forces

Still pick-pockets at specially frequented places

Before journey scan your passport, visa and flight ticketand mail it to your private e-mail address

At brawls or accidents do not intervene, because noChinese will

If you have an accident or did damage something becareful, since foreigners are also seen as cash cows

1. Travel know-how


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Power supply 220 Volt A/C

Different plugs, but in hotels often adapters at hand Power shortage esp. in summer

1. Travel know-how


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Tipping In China not common, except in western hotels where

westerners are common (about 10 RMB for baggageporter)

Taxi drivers do not expect tips, but often rounding of fare(11 RMB for 11,20 but also 12 RMB for 11,80)

1. Travel know-how


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Toilets Many public toilets, but there sanitary conditions often

bad. Never toilet paper in public toilets, so bring yourown or maybe someone close to public toilet will sellpaper

Better use hotel toilets (usually in lobby) or in exclusive

restaurants, some department stores Mostly (except in hotels) squat toilets When basket next to toilet, put used toilet paper in in

order to avoid clogging

1. Travel know-how


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Transportation Taxicabs can be stopped nearly everywhere (sometimes

even taxi stops), but careful when cops nearby (fines).Sometimes cabdrivers afraid of foreigners because oflanguage barrier

Meters have to be used, otherwise passenger does not

have to pay. Careful of touts asking you for a ride, theyoften overcharge. Tariffs on the back windows of the cabs

Since most cabdrivers do not speak English, bringnamecards/hotelcards in Chinese or have someone (e.g.

at hotel lobby) write down your destination in Chinese toshow driver

Simpler to have cabs beckon/ordered through hotel/res-taurant personnel and let them tell destination in Chinese

1. Travel know-how


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Time Zones / Time Lag In China only one time zone Chinese time is 7 hours ahead of continental European

time (in GB +6), during daylight saving time 6 hoursahead (in GB +5). In China no daylight saving time.

When writing dates stick to English system(year/month/day or year.month.day)

1. Travel know-how


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Opening Hours / Public Holidays

Banks, government agencies and companies openmostly 6 days a week, Saturdays often half day. Openfrom 8:00/9:00 till 17:00/18:00, often 2 hour lunch break

Shops open from 7:00/8:00 till 21:00/22:00. Sunday

holiday, but many shops still open; youll find food at anytime of day & night

Important public holidays: Chinese New Year, between end of January and end of

February, holidays one week before and after. All means oftransport will be overcrowded at this time!

May 1., Labour Day, as well up to 1 week holidays

October 1., National Day, as well up to 1 week holidays

1. Travel know-how


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Chinese View of Europeans Often very differing, Germany (arduous, reliable, correct

and on time but also no sense of humour inflexible andarrogant), British rather negative (colonial power)

Chinese will often know many facts about your countryas well as famous politicians, sports persons, artists as

well as brands etc. But also often very differing attitude from Europeans as

well (Hitler great leader)

1. Travel know-how


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Private invitations In China rather unusual, great honour

Host will say he/she is very sorry for the bad/little foodwhile you are looking at delicacies enough to feed abattalion. Praise and try everything.

Bring a present like a speciality of your country (liquor,chocolate/sweets but packed, otherwise customsproblems), otherwise buy fruits (many and differing) inChina. Often presents only unwrapped when you aregone, in order to save face.

Timing: rather to early than to late. Dont stay to long, inChina unusual to stay long after having eaten. Often hostwill still ask you to stay to be polite.

1. Travel know-how


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Food/Eating Chinese love to eat

Banquets usually a lot of different dishes (unevennumber and always more than persons attending) notindividually eaten but from the middle of the table

Rice/noodles, if at all only as final dish to satisfy appetite

Exotic dishes not that often. Dog meat very seldom andmore in the South. More common snakes, frogs, snails,turtles, crabs and often seafood. Usually host will pointthese out to you.

If you dont like, dont swallow blindly, but leave on theplate/bowl. If all dishes that have been ordered are beingfinished host will loose face for not ordering enough.

1. Travel know-how


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Food/Eating Return invitations if possible (in China or your home

country, if at home order like in China, many differentdishes in the middle, everybody can take from everydish) and be generous during banquets most deals arebeing brought forward or even finalised but don be

pushy. Chinese businessmen often like to get to know you less

formally (therefore often heavy drinking often Karaokesinging etc.) in order to get to know and trust you

In China you are doing business with people notcompanies!

Do not bring your spouse to banquets unless host invitesyou to do

1. Travel know-how


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Food/Eating Chinese table manners: slurping, smacking, burping are

a sign of indulgence. Nose blowing very impolite, rathersnuffling and spitting, if necessary to blow your mind, goout of the room or at least turn away from table. Smokingvery common for men before, during and after meals

Table cloth, table or in simple restaurants floor beingused as rubbish bin for bones, fishbones etc.

Try using of chopstick, makes a good impression. Toothsticks mostly being used behind hand.

1. Travel know-how


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Drinks/Drinking During meals always tea in addition to other beverages.

Tea will always be refilled During banquets alcohol like beer, wine and Chinese

spirit (up to 65%!). Lots of toasts, mostly person toperson, so be careful. Personal toasts should be

returned by you, preferably same liquor. Toast eitherganbei(glass should be emptied) or suiyi(drink howmuch you like). If you finish your glass, show yourpartner the empty glass. If you jolt glasses, hold yoursbelow your partners

Since tab water not drinking water in China (but you canbrush teeth with it without problems) in hotels, trains etc.water cookers, that you can use safely

1. Travel know-how


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Smoking Many smokers, especially older men

Women smoking are eyed a bit suspiciously If you are a smoker you will constantly being offered

cigarettes. So if you are a moderate smoker, bettersmoke not in company.

If you want to smoke, ask first if allowed and if so, offercigarettes to all men, at least the first three times

Non-smoking areas are becoming more common thesedays in public buildings, busses, trains etc. sometimes

being adhered to, sometimes not

1. Travel know-how


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Politeness

China = Land of Politeness? Only partly true, businesspartners and service personnel often very polite

Foreigners of preferentially treated and as a VIP. Butalso often service personnel afraid of foreigners because

language barrier But strangers to stranger often rude/impolite, but seldom

to foreigners. Foreigners to this day often stared at andbeing called hello. Even in big cities many service

personnel or poorer people come from the countrysideand might not have seen a foreigner yet.

1. Travel know-how


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Dress Code Suits for gents, coat/trousers and shirt for ladies

Especially when hot less strict (no jacket, no tie, ofteneven only polo shirt

Careful not to get a cold during summer because of airconditioning in most buildings

Too sloppy dresses (no shorts for men, not too muchcleavage for ladies) impolite during banquets, at eveningparties or Karaoke okay

1. Travel know-how


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Friendship/Guanxi In China friendship often = mutual

beneficial partnership Guanxi = Connections/commitment

Who gets a favour/help has to repaythese, often in a different context

Chinese very pragmatic, often seenas calculating

Compromise is most important

family

school- orstudy-friends

commonexperience

teacher/student

friends

Busines

spartner



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In China rules define howsocially different personsare interacting

The socially higher

ranking person starts, leadsand finishes a conversation

In Europe rules are aframework to universallycommunicate

The rules apply to everyone

in the same way

Conventions/Rules

While in Europe the content dominates most situations, in

China the social status of the communicating personsdominates



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(with the background of two

world wars:)

Formation of a critical/maturepersonality, that knows how

to deal with conflicts and

assumes responsibility

(through memorizing a huge

number of characters:)

Memorizing is most important,reproduce what you have

learned as exact as possible

More Understanding More knowledge

EuropeChina

Learning/Understanding



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Impolite, unsocial,inflexible

Incompetent, not self-assured, unrightful

Chinese impression of

Europeans

European impression

of Chinese

Self-portrayal



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Reception Shaking hands has taken over from the traditional slight

bow. Dont be offended if no hand is being offered,especially Chinese women can still be reluctant to offertheir hands. Stick to the hierarchy when shaking hands.

Always have sufficient name cards ready, which you ex-

change at every first meeting with each person. Havebilingual (your language/Chinese) or even trilingual (yourlanguage/English/Chinese) name cards ready. Yourposition in Chinese should be as high as possible.

When exchanging name cards, take them in both hands,

look at them first thoroughly before putting away. Put themon the table in front of you according to seating of partners In China usually last name first, then first name. Last name

nearly always one syllable, first name often two syllables

3. Communication


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First Contact Making new contacts: have acquaintances introduce you

to a stranger. Chinese are focused on networks and willwelcome friends of a friend always warmer than totalstrangers

If no introduction possible, try to find out common

acquaintances or tell about your network Chinese liketo be acquainted with influential and famous people, orthose knowing them

When seeing somebody off, bring them to the door, the

further you come with them, the bigger your respect

3. Communication


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Conversation manners

Name cards important to find out position of each of yourpartners since in China hierarchies much stricter than inEU

In China higher position mostly according to seniority. In

delegations not necessary those who talk most, mostimportant, more common oldest most important

Content of formal conversations of very general andnoncommittal. For Chinese important to create a good

atmosphere including praise for and thanks to as well ashope for good co-operation

3. Communication


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Conversation manners Try not to loose your patience or temper, show irritation,

dominate a conversation to much or let the Chineseloose Face. But draw clear lines und dont beindecisive

Often repeated content is the most important

(redundancy is the key). What is not beingmentioned/answered is either unrealisable, notinteresting or for later

Do not push to much for definite answers, since your

conversation partner might not be in a position to giveone, rather come back to important questions/problemsduring next conversation

3. Communication

A i I i L S i O b 15 2007 B li


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What not to say/do Self-praise but praise your partner and relatives as

often as you can, but always deny/diminish complimentspaid to you

Critical or even depreciative comments (to anything)

negative occurrences (e.g. sickness, mistakes,

calamities, or death) Missing sympathy or personal interest for welfare of

partners To debate objectively or even controversial

Trying to address business issues in informal setting Making reference to common drinking experiences next

morning

3. Communication

A i I t i L S t i O t b 15 2007 B li


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Content during small-talk Family and descent Education and career Visits to foreign countries

Happy events in the family (birth, marriage)

Shopping leads and experiences Offers for help

Social relationships Eating and drinking

Sports events, international events, world politics (but donot criticise China)

Paying compliments

3. Communication

Asia Interprise Leap Spectaris October 15 2007 Berlin


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Non-verbal communication Posture should show respect of partner, dont sprawl

No eye-contact is necessary, staring is impolite Keep a bit more distance when standing or seated than

in the West, avoid body contact

Pay attention to height, sit when you are a lot bigger thanyour partner, make yourself smaller

Facial expression not as important than in the West,constant smile does not necessarily mean anything

3. Communication



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In China Statement/problem

always in conjunction tostatus of communicatingperson

Chinese communicationvery indirect, often

misunderstood in West =>considered as soft,unclear, dishonest

In Europe Statement/problem

independent of socialstatus, often controversialdiscussion

Communication in Europefact-oriented and direct =>

in China considered asunsocial and impolite,leads to discomfort

Direct Communication

3. Communication



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In China:

First less important, harmo-ny, most important at endrepetition = importance

In Europe:

Important at first, lessimportant at end

emphasis = importance

Content-Time-Relation

3. Communication



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3. Communication/negotiating

Pursuing a Request Look for commonness (common experience, needs,

motives) Find out what the interest of your business partner is,

and in how far could he be interested in my request

Build up a rationale, that makes it impossible for youbusiness partner to decline your request withoutcontradicting himself

Go slowly, not directly, do not be pushy, find the interests

and weak point of your business partner



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Pursuing a Request In between conversations drop other things, common

positive ground, interconnections (change betweenfactual level and interpersonal level)

Tell your main request/proposal at the end, rather

casually, wait for reactions During problems or disharmony, hold your request/proposal back and first eliminate problem

Redundancy: come back to your request/proposal again

and again, redundancy signalises importance




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Refusing a request politely Dont go into/overhear the request Be silent, wait Discontinue course of conversation, distract Youve got something urgent to do right now

Adjourn or be noncommittal Avert competence (good idea, I will talk to the person

responsible) Make it obsolete (already being taken care of)

Leaving documents means you are not interested




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p p, p , , ,

Language/phrases

Rather German than English pronunciation.

x = chj = djq = tschc = tz

ch = dschz = dzia = iaian = in

ei = eyh (not ai)

3. Communication



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p p p

Language/phrasesyou to have

meiyou to not havedui yes / correctbu (dui) no / not (correct)ni/nin you (singular)wo I

ta he/she/itnimen you (plural)

women wetamen they

3. Communication



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Language/phrasesni hao Hello

ni hao ma? How are you?zai jian Goodbyexiexie Thank youbu keqi Youre Welcome

dui bu qi Im sorry / excuse memei guanxi never mindhao good

bu hao baddianhua telephonelu/jie street/road

3. Communication



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Language/phrasesdadi/chuzhuche Taxi

feiji chang Airporthuoche zhan Train station

jinkou/rukou entrychukou exit

xishoujian/cesuo Toiletchi fan to eat (literary: to eat + rice)he to drink

ganbei/suiyi Cheers (empty glass/up to you)pijiu Beer

3. Communication



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3. Communication

Shi10Wu5

Jiu9Si4

Ba8San3

Qi7Er2

Liu6Yi1

Hand-sign

PinyinCha-racter

NrHand-sign

PinyinCha-racter

Nr



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Contact

German-Chinese Business Association,

(Deutsch-Chinesische Wirtschaftsvereinigung,DCW)Unter Sachsenhausen 10-26

50667 KlnTel.: 0049-221-12 03 70

Fax: 0049-221-12 04 17

E-Mail: [email protected]: www.dcw-ev.de

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