business in asia_cultural insights_china_one-child policy

30
If YES Then improving your understandin g Asian business cultures is vitally important A’Ohlin Commercial Insights © 2013 Page 1 Want to do Business in Asia? Or do business with people from Asia?

Upload: aohlin-commercial-insights

Post on 23-Jun-2015

138 views

Category:

Business


1 download

DESCRIPTION

The road to better business relationships within our global environment involves improving our understanding of each country and its culture. Help me bridge the gap between Australia and our Asian neighbours by watching my presentation, and passing it on. For development of a country and industry specific perspective to underpin your Asia strategy, call me on 0414 453 913 or reply to this email. ANNA SEARLE A'Ohlin Commercial Insights www.aohlininsights.com

TRANSCRIPT

If YES

Then improving your

understanding Asian

business cultures is

vitally important

A’Ohlin Commercial Insights © 2013 Page 1

Want to do Business in Asia?Or do business with people from Asia?

Business In Asia: Cultural InsightsChina

understanding the one-child-per-family Policy

A’Ohlin Commercial Insightswww.aohlininsights.com

June 2013

A’Ohlin Commercial Insights © 2013

• China – a brief introduction• Cultural Insights• Understanding the one-child-per-family Policy• Land Distribution• A Timeline Perspective: Impact of the One-Child Policy• Sources & Recommended References• Cultural Profile Insights in this Series• Countries in this Series• Professional Services – A’Ohlin Commercial Insights

China Perspectives – what we cover today

A’Ohlin Commercial Insights © 2013 Page 3

China is situated in eastern Asia, bounded by the Pacific in the east. The third largest country in the world, next to Canada and Russia, it has an area of 9.6 million square kilometres or one-fifteenth of the world's land mass. Oldest continuous civilization Over 4,000 years of verifiable history Beijing is the capital of China Official language is standard Chinese

derived from the Mandarin dialect many dialects in China

Only one written language Communist form of government Chinese government promotes atheism Constitution guarantees freedom of religion

Variety of religions are practised Confucianism – despite not being a formal religion – is practiced widely

throughout the country

China is the third largest country in the world …

A’Ohlin Commercial Insights © 2013 Page 4

In 2012 our largest city, Greater Sydney, had a population of 4.67 million with 380 people per square kilometre

China’s cities dwarf our Australian cities

A’Ohlin Commercial Insights © 2013 Page 5

City Population People per Sq KM

Beijing 19.61 million 1,167

Shanghai 23.02 million 2,059

Sydney 4.67 million 380

Shanghai: 3,854 in urban areas2, 059 total average

China has the 2nd largest economy next to the USA

In June 2013, China has GDP: US$ 9,039 billion 7.5% growth for 2013 expected

Most business people speak English Most densely populated county in the world Approximately 1.35 billion people as of 2013

… with the second largest economy in the world

A’Ohlin Commercial Insights © 2013 Page 6

• The extent to which these customs will be observed varies between areas within Greater China and between Chinese communities throughout the world. Some traditions may no longer be observed apart from in small pockets of very traditionalist Chinese.

A’Ohlin Commercial Insights © 2013 Page 7

Understanding the one-child-per-family Policy

Photo: One baby, four grandparents, big problem.Reuters / William Hong

A’Ohlin Commercial Insights © 2013

Land Distribution – an historical perspective

• Based on ancient system beginning in theXia dynasty (approximately 2070 BC to 1600 BC)

• Most complete form in the– Well Field System of the Zhou dynasty (1045 BC to 256 BC)– Equal Field System around AD 485 by the Northern Wei rulers

• Principle of allocating fields based on the number of household members– Because girls moved to other families upon marriage, they would not be given

land whilst still living with their birth families– Discrimination in favour of men became an immutable law

Page 8

Boy children not only carried on the family name (as in traditional western cultures), they were the source of the family property and the creator of its wealth

• Land distribution process in AD 485:– List of households– Land was allocated based on the number of permanent household members– Land was divided into 2 kinds:

• Arable fields for growing grain• Mulberry tree land for feeding silkworms

– Every male aged 15 years of more received• 40 mu of arable land

– land reverted to the government upon death• 20 mu of mulberry tree land

– land became their property which they could buy and sell and not hand back to the government

– Females received• 20 mu of arable land• reverts back to the government upon death

– Slaves and servants could also be allocated arable land• reverts back to government upon death

• Land distribution evolution under Tang dynasty, AD 618-907– Clearly stipulated that females were not normally to be given their own land

A’Ohlin Commercial Insights © 2013 Page 9

Boy children not only carried on the family name (as in traditional western cultures), they were the source of the family property and the creator of its wealth (continued)

A’Ohlin Commercial Insights © 2013 Page 10

Entrenched land distribution policies coupled with periods of abject poverty lead to a general preference for male children

Boy children not only carried on the family name (as in traditional western cultures), they were the source of the

family property and the creator of its wealth. 

This, coupled with the periods of abject poverty, lead to a preference for male children.

 Basic inequality between men and women has become

deeply entrenched in tradition.

1950’s Economic planning modelled after the Soviet Union’s system was introduced

1953 First population survey was carried out due to concerns about rapid

growth

1953-57 First Five-Year PlanPopulation believed to grow at 20% per annumSlow growth in manufacturing technologyRising concern that the economy would struggle to support the growing population

1966-1979 Population expanded from 700 million to 1.2 billion

Education and the economy was lagging the rest of the worldReliance on ration coupons for food and essential items such as oil, meat, grain and cloth

A’Ohlin Commercial Insights © 2013 Page 11

The 1950’s saw the introduction of Economic Planning

A’Ohlin Commercial Insights © 2013 Page 12

One year I remember queuing from five o’clock in the morning until twelve noon in the snow and freezing temperatures to buy a quarter kilo of pork for my teacher. This was the ration for the entire family

for their Chinese New Year dinner! 

Xinran, Message from an Unknown Chinese Mother, 2010

1978 Economic reforms introducing a market-oriented economy began Dec 1979 one-child-per-family policy introduced

Millions of families continued to believe that it was their god given duty to produce a male heir to carry on the family lineWives unable to produce a male were shunnedFamilies (particularly wives, husbands and the husband’s parents) were shamed; ‘lost face’

EFFECT In poorer villages, if the first born child is a girl, the child is

abandoned or smothered at birth (referred to as “doing a girl”) and the family loose face amongst the other villagers

A’Ohlin Commercial Insights © 2013 Page 13

In poorer villages, if the first born child is a girl, the child is abandoned or smothered at birth

Every villager knows that a ‘good woman’ must give birth to a boy – it is both her god given duty and her

parents-in-law fervent hope…in fact it was sin not to do so

 Xinran, Message from an Unknown Chinese Mother, 2010

1980s ‘family planning era’ with the one-child-policy

A’Ohlin Commercial Insights © 2013 Page 15

In poorer villages, if the first born child is a girl, the child is abandoned or smothered at birth

• In villages, village cadres who carried out enforcement of family planning policies did so crudely and violently– Whole families were ruined– Homes destroyed– People died– Baby girls were abandoned or smothered at birth

• In the cities and the eastern urban areas of China, enforcement was severe and typically enforced by your employer.– Having more than one child resulted in you losing your job and your employer and

colleagues also losing their jobs.– Losing jobs also meant losing your home and all entitlements including food,

clothing, schooling, medical care and the ability to find other work

A’Ohlin Commercial Insights © 2013 Page 16

The one-child-per-family Policy was introduced in the 19080’s

China is a vast country with an area of 9.6 million km2, and the further one goes from the centre of government, the more likely it is that local rules will prevail

over edicts from the capital

• There are areas where the one-child policy has never been effectively implemented

• In the most remote western mountain areas only lip service is paid to family planning policies

• Even in the east of China, it was common for poor peasant families to have three or more children

A’Ohlin Commercial Insights © 2013 Page 17

However, “the heavens are high and the emperor far away”

‘the heavens are high and the emperor far away’天高皇帝远

p tiān gāo, huángdì yuǎn

source: The Economist, “The worldwide war on baby girls” March 4, 2010; CASS

• Most educated city dwellers– dismissed the reforms as yet another political movement– guarded their wealth cautiously with minimal risk

• Migrants from the countryside moved into urban areas labouring furiously to lift themselves out of poverty

A’Ohlin Commercial Insights © 2013 Page 19

The 1980’s was also the first decade of economic reform saw the rise of the 10,000 yuan-a-year family

‘10,000 yuan-a-year family’

reference to uneducated people who had made money through taking risks by becoming small stall holders in cities and towns

• Wave of young people swamped universities and colleges• Business became fashionable• Everything “western” was fashionable• Students expressed their ‘westernisation’ through sexual liberation (similar to

that experienced in Australia’s swinging ‘60s), however there was virtually– No sex education or guidance– No knowledge of contraception– No understanding that sex could lead to pregnancy– No understanding of how babies are made

A’Ohlin Commercial Insights © 2013 Page 20

During the 1990’s the educated and wealthy realised that they needed to embrace the economic reforms and take risks if they were to keep up

With the one-child policy, an ancient preference for boys, and a naïve sexual freedom, China experienced a surge in the numbers of girl babies in its orphanages

Dec 2001 Population and family planning law promulgated that “discrimination against and mistreatment of women who give birth to female children or who suffer from infertility is prohibited”

EFFECT Minimal impact due to:• Inability to enforce the law• Deeply entrenched traditions and beliefs around first born males• Survival instincts when facing abject poverty and land is required

to feed your family• Wealthier families saving face and protecting and growing their

wealth

A’Ohlin Commercial Insights © 2013 Page 22

In December 2001 the Chinese government passed an anti-discrimination law against the mistreatment of women who give birth to female children – it had little effect

Jul 2005 Suicide is the main cause of death of people aged between 20 and 35 in China• An additional 2.5 million to 3.5 million make unsuccessful attempts

each year• Overall, suicide was the fifth most common cause of death in China• China has 22 suicides for every 100,000 people, about 50% higher

than the global average• Reported that suicide is an immediate escape from an intense

personal conflict Jul 2009 Rising government concern about the population imbalance due to (not

Male-Female)• A dwindling birth-rate among the educated classes; and• An ageing population

2010 Up to 3 million babies are hidden from the government every year

A’Ohlin Commercial Insights © 2013 Page 23

Rising suicide rates of young adults and a population imbalance become government concerns from 2005

sources: The Guardian, Tuesday 26 July 2005; referencing research published by China’s health ministry and the Beijing Suicide Research and Prevention CentreAssociation for Asian Research, 2003Liang Zhongtang, demographer and former member of the expert committee of China’s National Population and Family Planning Commission, as reported in The Telegraph UK “Chinese hiding three million babies a year” May 30, 2010

A’Ohlin Commercial Insights © 2013 Page 24

In July 2009 Shanghai authorities publicly announce an official relaxation in the one-child policy

2009 + Having more than one child is considered a sign of wealth

Hot off the Press: 27 June 2013

“…chatter in Chinese policy circles suggests that changes may be imminent [to China’s family planning rules]. The [National Health and Family Planning] Commission, which merged with China’s ministry of health earlier this year, is expected to unveil reforms such as scrapping a rule requiring that families who are permitted to have more than one child wait four years before having their second…”

June 27, 2013 QUARTZ (world news blog, http://qz.com/

If YES

Then improving your

understanding Asian

business cultures is

vitally important

A’Ohlin Commercial Insights © 2013 Page 26

Want to do Business in Asia?Or do business with people from Asia?

Going to Asia?

A’Ohlin Commercial InsightsCountry & Industry Research, Workshops & Profiles

Get to Know Who You’ll be Dealing With

A’Ohlin Commercial InsightsCountry & Industry Research, Workshops & Profiles

Brunei Sultan Hassanal Bolkiah, left, and other leaders of the Association of Southeast Asian Nations join their hands for a group photo section during the 22nd Asean Summit in Bandar Seri Begawan, Brunei, Thursday, April 25, 2013AP PHOTO/VINCENT THIAN

A’Ohlin Commercial Insights Can Help You

Like this?Want more?

Want Asian business analysis specifically for your business?

contact

A’Ohlin Commercial Insightswww.aohlininsights.com

A’Ohlin Commercial Insights © 2013