Lithuania and China

LIFEN ZENGCathy MBELA

Melanie LAFONAmelie LAURENT

Regimantas URBANAS

Intercultural Communication

Introduction

• Lithuanian company is joining a Chinese firm in order to make a jewellery produced with amber.

• By joining a foreign company, which advices could we give to the Lithuanian and Chinese to do business together?

Plan of the presentation

• Countries profiles;• Globalisation of the world and Business

Culture;• Business culture in each country;• Major cultural problems;• Solutions and Recommendations.

• Full name: People's Republic of China • Government:  Communist state • Capital: Beijing • Population: 1,313,973,713

• Major language: Mandarin Chinese • Major religions: Buddhism, Christianity,

Islam, Taoism. • History: After its victory in the Chinese Civil

War, the Communist Party of China. On October 1, 1949, they established the People's Republic of China

• Full name: Republic of Lithuania • Government:  Parliamentary democracy• Capital: Vilnius

• Population: 3,585,906 • Major languages: Lithuanian, Russian• Major religion: Christianity • History: Lithuania became the first of the Soviet

republics to declare its independence in 1990. Joined both NATO and the EU in the spring of 2004.

Globalisation of the world and Business Culture

• Globalisation is a process of interaction and integration among the people, companies, and governments of different nations.

• Globalisation has effects on culture and then on Business culture.

• Culture: mental software dealing with fundamental human processes

Hofstede’s method

• Hofstede is an influential Dutch expert on the interactions between national cultures and organizational cultures

• 5 dimensions of culture :1. Power distance

2. Individualism

3. Masculinity vs. femininity

4. Uncertainty avoidance

5. Long vs. short term orientation

Application of Hofstede’s method

0

20

40

60

80

100

120

IDV PDI UAI MAS LTO

Graphic drawn with Hofstede Model

Lithuania

China

Punctuality

• Punctuality is vital when doing business in China.

• Ensure you are early as late

arrivals are seen as an insult.

• You should always be punctual in business meetings

• Even if you’re invited for dinner you can’t be late for more than 5-10 minutes.

Hierarchy, formality

• Big difference between young and older businesspeople.

• Very formal during business meetings.

• Will seat their partners across from someone of a similar level.

• Bigger respect to older people and people, who has a higher position in society.

• Enter in the meeting room in hierarchical order

• It is often difficult to identify who makes the final decision.

• Treat everybody with equal respect

Negotiations 1

• Starts talking about business from the beginning of the meeting.

• Discussion should follow strict meeting plan.

• Be prepared to meet with several lower levels of people before getting to the actual decision maker.

• Only senior members speak.

• Be prepared for the agenda to become a jumping off point for other discussions.

• Do not touch others while speaking and don’t demonstrate anger.

Negotiations 2

• Lithuanians sometimes might use pressure;

• They don’t show their emotions and expect their business partners to be calm during meetings.

• Lithuanians speak softly.

• Chinese negotiations are process oriented.

• Speak slowly with short pauses between the sentences, an insult is a proven formula for failure.

• Under no circumstances should you lose your temper or you will lose face

Negotiations with women

• Some older generation business people might have problems negotiating with women equally.

• Women should try not to do anything which could be understood as flirting.

• Negotiations with women in Chinese society is not yet able to accept independent-minded, educated women into its economic and political ranks.

Eye contact

• In Lithuania eye contact is extremely important, it infers trustworthiness and sincerity

• However, it shouldn’t be too long and intensive.

• Contact to refrain from looking straight into the eyes of your Chinese colleague

Greeting

• Handshake is the common form of greeting

• Lithuanian greeting would be a pleasant surprise.

• Greetings are formal and the oldest person is always greeted first.

• Handshakes are the most common form of greeting

• look towards the ground when greeting someone.

• The Chinese have a terrific sense of humour.

Gifts

• Bring wine, flowers (odd number of flowers), or sweets to the hostess.

• Gifts are generally opened when received;

• Is quite common to offer a small gift at the end of the meeting.

• Do not give flowers

• Four is an unlucky number, Eight is the luckiest number.

• Gifts may be refused three times before they are accepted.

Biggest possible problems

• Hierarchy could possibly be a issue as they don’t operate in the same way

• About the negotiations, Lithuanian are usually doing it step by step while Chinese like jumping steps in order to come back later on.

• Eye contact can be a barrier because Chinese people do not like to be looked in the eyes and become offended if it happens. However for Lithuanian it is extremely important because it shows sincerity.

• Gifts are important for both nationalities but its more difficult to offer presents to Chinese because some can be misinterpret.

Solutions and recommendations

•The most important is to be aware of these distinctness.

• We could recommend to the Lithuanian to respect the differences by changing their habits because they are entering a the Chinese market.

Conclusion

• Doing business with different nationalities is not easy as we can see

• But if everybody tries to understand the culture of others without Stereotyping and Otherisating negotiations could be simple.

• The best advice is just Be Yourself!

References

• http://www.womenofchina.cn/focus/economy/economy/7815.jsp• http://www.apmforum.com/columns/boye22.htm • http://www.globalization101.org

• http://www.lehmanbrown.com/businesschina.htm• http:// www.kwintessential.co.uk/resources/global-etiquette/china-

country-profile.html• http://www.lehmanbrown.com/businesschina.htm• http://resources.alibaba.com/article/4848/

Sourcing_Stories_Dinners_in_China_mean_more_than_mere_entertainment.htm

Thank you for your attention