Cultural Analysis of China

Abstract

This Global Business Cultural Analysis of China delves into the Chinese culture as it pertains to potential business opportunities for foreign countries, multi-national corporations, small business, and individuals desiring to conduct business with Chinese companies, both within China and remotely, from other countries. Four main research questions are discussed, with many sub-topics. These questions are, (1) What are the major elements and dimensions of culture in China?; (2) How are these elements and dimensions integrated by locals conducting business in China?; (3) How do the first two questions compare with US culture and business?; (4) What are the implications for US businesses that wish to conduct business in that region?

The methods used in gathering information are heavily weighted to scholarly journals and articles, with current events and reports utilized to leaven the research with timely facts and new understandings. The results of the analysis of the data gathered indicate an unbalanced situation in that China, as it continues its growth into one of the largest economies in the world, is beginning to exercise an increasing amount of assertiveness in its dealing with foreigners. At the same time, as a country fairly new to the level of world power attained, China seems to be hesitant in removing itself from practices and standards that the outside world finds unacceptable. However, China appears to be learning, very quickly, the appropriate actions and presentations intended to mollify world opinion. It appears that China will continue to grow as a world power and will be hindered only by its own shortcomings, and the world economy. This growth and increasing dependence of foreign countries on China's massive manufacturing and raw material production, will serve to open doors for potential businesses into the near future.

Keywords: China, business, Chinese culture, business opportunities in China, cultural analysis

Global Business Cultural Analysis: China

Despite the incredible growth of China as economic and world power, China may well be one of the most socioeconomically-closed countries in the world. In spite of its vast population, geographic size, and business opportunities, China, in regards to understanding the Chinese culture and gaining acceptance from the Chinese, is as impregnable a nation as it has been since before President Nixon's famous visit in February of 1972. The search for an understanding of the cultural and socioeconomic differences between the United States, other western countries, and China is imperative when considering engaging in business and is a sensible subject of a Global Business Cultural Analysis. In the economic reality of the world today, it would be foolish to not consider China as one of the rising world power.

China is now the second largest world economy, only after the United States and also vying for a key role in the political and military affairs on the international and regional scale. There is no doubt about China's spectacular progress particularly in the economic arena, despite its being not absolutely a free economy; there is hardly any other instance in the contemporary world of such a feat under a one-party political system. (Chowdhury, 2011, para. 4)

Based on this quote from a recent article, it seems a prudent business or individual would take the time to research and gain knowledge concerning what is fast becoming a major power in the world today.

There is still much mystery surrounding Chinese culture. In spite of the still growing amount of business between China and the United States, it seems as though Americans are still struggling to grasp a sure sense of confidence in their business dealings with the Chinese. As China accelerates its climb to world power status, it is becoming more aggressive in its demand for not only resources for its own population, but acceptance and recognition as a world power.

The Major Elements and Dimensions of Culture in China

There exist many dimensions of culture; these categories, as described by Satterlee (2009), are communication, religion, ethics, values and attitudes, manners, customs, social structures and organizations, and education. (p. 40). One of the first areas of attention is communication. There is an immense value placed by the Chinese on etiquette, especially in the business setting. A great deal of emphasis is placed, by the Chinese, on developing relationships in connection with business ventures. To the Chinese, the sharing of personal information indicates a commitment to a stronger investment in the business relationship. Understanding the standards of etiquette allows outsiders to communicate unhindered by unintended offenses to Chinese counterparts. These standards range from acceptable ways of addressing Chinese individuals by their position rather than with Mister or Mrs., to giving due respect to the Chinese individuals, and the proper way to gift. Every detail is important, from who is addressed first to the seating arrangement in a conference room. "Chinese culture encourages listening not speaking....as a result, listening becomes the predominant mode of communication" (Fang & Faure, 2011, p. 3). In interaction between Chinese and foreign individuals, it is of the utmost importance to understand the Chinese concept of "face". "Face (mianzi, lian) involves the respect...for the person with good moral reputation as well as his...prestige. Face is thus not only an individual's but also his or her in-groups business, often with moral connotations" (Fang & Faure, 2011, p.3). To the Chinese, "face" involves every aspect of their lives, from personal to professional, there is no distinction between the two areas. An astute business manager will understand the importance of knowing that communication with Chinese can only be successful only after the cultural subtleties are learned.

The organization of Chinese religious influences, beliefs, and practices holds great sway over Chinese communications, both historically, as well as, in the dynamics of the current Chinese economic growth. There are three historical teachings which organize the Chinese religious culture; Confucianism, Daoism, and Buddhism. "Historical precedent and popular parlance attest to the importance of this threefold division for understanding Chinese culture. (Teiser, 1996, para. 1). While the three historical teaching are the basis for the religious structure and organization in China, contemporary, in comparison, religions, often called "popular religions" (Teiser, 1996, para. 31), which encompass common rituals, ranging from the burning of incense to exorcising