Booklet Doing Business In China


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Get to know China, the people, the culture, and doing business in China.

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Booklet Doing Business In China

  1. 1. Amazing!Doing business in China Línhé huáng Copyright reserved
  2. 2. Table of contents• EU-China-Holland ………………… 3• Culture differences:• Western countries vs China ………… 5• Amazing China ………………………… 28• Amazing Chinese ……………………… 34• Amazing! Doing business in China . . 36• More tips and details …………………. 37• Conclusion and support ……………… 47• References ……………………………. 50• About Linhe Huang…………………….. 51 2
  3. 3. Regarding the size,in Chinese eyes, Holland is like a small province of China 3
  4. 4. EU-China-NL27 countries 34 provincesSize:4 million km² Size:9.6 million km² Size:9.6 million Size: 33,800 km²Population:495 Population:1300 km²million million Population:1300 Population:16,5 million million Currency: RMB Currency: Euro (1 Euro=±10RMB) Languages: Language: Mandarin Dutch+ Frisian +220 dialects 4
  5. 5. There is NO absolute black and white, butin general, there are quite some culturaldifferences between the Dutch(Westerners) and the Chinese. 5
  6. 6. Leader 6
  7. 7. Giving opinions 7
  8. 8. Dealing with anger 8
  9. 9. Shower time 9
  10. 10. Self 10
  11. 11. Waiting (in a queue) 11
  12. 12. At the restaurant 12
  13. 13. Sunday at the street 13
  14. 14. Party 14
  15. 15. Punctuality 15
  16. 16. Network 16
  17. 17. Life style 17
  18. 18. Beauty standards 18
  19. 19. The daily life of the elderly 19
  20. 20. Mood and the weather 20
  21. 21. Desired vehicle 21
  22. 22. When stomach hurts 22
  23. 23. Deal with new thingsReluctant, wait and see! Take it, check it out! 23
  24. 24. Food fashion 24
  25. 25. Kid 25
  26. 26. Animal 26
  27. 27. Impression of the other party 27
  28. 28. No wonder there are differences between Western countries and China. Even within China, you see a different world! 28
  29. 29. Rich -Poor 29
  30. 30. Urban – Rural 30
  31. 31. Industry -Environment 31
  32. 32. Justice-Corruption 32
  33. 33. West China-Inland-Coast Ease of doing business by regionRed circles: Main destinations China Mission 2010 33
  34. 34. For betterunderstanding and communicating, you must know the amazing facts of Chinese. 34
  35. 35. Amazing Chinese• Extremely friendly: Nihao means You Good!• They say: What you can catch is what you can eat!• They never say no. In stead, they say Maybe…• Yes could mean they heard you, even though they don’t understand what you are talking about.• From conditioning/explanation to conclusion. Eg: if (long stories), then I will do…• No eye contact, even though you might have very attractive eyes.• Copy right is the right to copy - Please keep in mind, I am not proud to mention this as a Chinese. However, who’s not downloading the music or software which you are not supposed to. 35
  36. 36. Doing business in China, Amazing!!• Chinese don’t have 9 till 5 mentality• The priority to business- You will never hear a Chinese say: I could not come because it’s my wife’s birthday.• Price could be lowered to whatever level, If you know the diversity of factory locations and conditions. Eg: Products could be made at a private house, prison. You need to do research in advance to know the bottom of the price before you get the low enough price with wrong product.• Fast change: make it happen NOW. When a decision is made, the implementation could be made in 3 shifts: 24hours/day.• Dining and wining is part of the business. It seems there are no big differences between Chinese breakfast, lunch and dinner: It’s all diversified and heavy (for Dutch stomachs)• Chinese like long term business relation, as well as a long term friendship. Don’t be amazed when your Chinese work partner treat you as a friend, eg: Introduce you to their family. 36
  37. 37. Practical tips• When you receive a business card, take it with two hands and nod at the same time.• Prepare your business card with Chinese version at one side, including a Chinese name.• Speaking a little Chinese is one of the best ways to show your respect on Chinese. It will also create a friendly and relaxing atmosphere.• Medical excuse is the best way to refuse drinks during a Chinese dinner.• A tip is not usual at restaurant or café in China.• A typical Dutch gift which says its culture would always be welcome. Such as wooden shoes or tulip bulb.• ENOUGH communication with your interpreter. let him or her know your business, products and so on before the interpretation work.• Sample/Product drawing says 1000 times more than word expression, for the copyright issue, please do not consider to give a complete drawing away before you really know your business partner.• A Chinese assistant would help (with Dutch education/working experience)• Guanxi is the key! 37
  38. 38. Guanxi (关系) is the keyIn contrast to the West’s transaction-bases businessculture, Chinese business society is relationship-based.When a foreign company wants to enter the Chinesemarket, they must understand the Chinese businessculture. The most important thing to understand is themeaning of Guanxi. Guanxi does consist of connections,but more specifically of connections that are defined byreciprocity and mutual obligation. Establishing Guanxi isfundamental to the world of Chinese business. Guanxi isgrounded in trust, mutual obligations, and sharedexperiences. 38
  39. 39. 3 forms of Guanxi Guanxi exists in various forms based on the closeness of the relationship between the parties involved. There are three levels, each describing the degree of social proximity:1. Jiaren: closest possible relationships. Blood relations certainly constitute the strongest bonds of obligation, the Chinese will consider highly trusted non-blood relatives also as family members.2. Shuren: non-family members with whom one shares a significant connection. For example, people from the same town, former classmates, members from the same clubs or societies, or friends of friends.3. Shengren: Strangers. A wait-and-see attitude is common when dealing with Shengren. The focus in relationships between Chinese and Shengren tends toward short-term benefit. It is possible to be a Shengren in one network and a shuren or jiaren in another. It depends on how you relate to the network involved. 39
  40. 40. To build and maintain Guanxi• To host dinners is a smart step to built relationships with Chinese. When you host a lot of dinners but your commitment and friendship to the Chinese is limited, dinners are a waste of time and money.• The giving of gifts is vital in both building and maintaining Guanxi. Gift-giving promotes Guanxi by providing a way for people to express their interest in one another and by establishing a basis for continued interaction. Gifts do not have to be expensive. For Chinese, gift-giving is not just a material exchange but also, and more important, an exchange of growing bonds of friendship. Giving a gift with symbolic value is a way of respecting Chinese tradition while remaining under your company’s financial cap.• In many situations, the recipient of a gift will politely and gently push it back. There will be a few moments of pushing the gift back and forth, but one should never openly or positively refuse a gift from another individual. Any favor/gift should be repaid with a slightly larger one.• The durability of Guanxi depends on a number of factors, including the intensity of the relationship and the way in which it is maintained. In case of the Jiaren it may last for life. For the Western businessperson, the key to maintaining Guanxi lies in continued interaction with your Chinese associates. What is important: stay in touch with your friend (phone calls or notes), inquire about their families and keep the reciprocity alive. 40
  41. 41. Mianzi (面子)• Mianzi, or face, is inseparable from the concept of social roles. One’s role becomes one’s self-image or face which must be preserved to keep the social order intact. Mianzi denotes a social standing based on one’s character and reputation within a given social group. Mianzi is also reciprocal: it is a shared responsibility not to damage the standing or reputation of others. When you cause another to lose face, you damage not only their reputation but yours as well. It is an intangible form of social currency, “group credit” that the whole community seeks to maintain.• It is also important to emphasize that mianzi often takes the form of symbolic gestures as well as substantial acts.• Mianzi can exist only in relations to others; without relationships, there is no possibility of self-recognition, and no face. The activating ingredient of any relationship is reciprocity, a principle fundamental to all Chinese business and social interaction. 41
  42. 42. Harmony• Chinese culture places a high value on the preservation of harmony, which is said to be not only at the core of Confucian principles but also at the origin of the world. To attain harmony, individuals are expected to subordinate themselves to the good of the family (and by extension of the business) and adhere to the spirit of the middle way. When a system is harmonious, it has achieved a balance between divergent tendencies. Chinese understanding of balance is dynamic: it requires constant readjustment and adaptation. The Chinese seek harmony and balance in all aspects of their lives.• From a business perspective, personal growth at the individual level is expected to lead to greater success for the company; therefore, a well-managed business starts with a well-managed individual and family. 42
  43. 43. Weiji-crisis/opportunity combined• The Chinese translation for crisis is weiji, in fact wei means danger, while ji means opportunity.• From the Chinese point of view, crisis appears not as an insurmountable problem but as an aspect of transformation. It demonstrates how paradoxical thinking can lead to opportunistic action.• Many Chinese business people are practical and entrepreneurial and can act swiftly. The ability to combine patience with speed is one of the greatest strengths of traditional Chinese businesses. 43
  44. 44. Communication differencesConcerns Saving face Frankness & honesty Respect & politeness Assertiveness One example about Compromise Self-assurance &flexibility differences in General feeling Specific terms communicating: Western people shall say We Social status Task at hand cannot do that and Patience Time efficiency Chinese people shall sayStyle & Reserved Extroverted It might be a little bitPractices difficult for us to do. Tentative Firm Personal Impersonal No body contact Hugging and back- slaping acceptable 44
  45. 45. Win-WinIn the Chinese way of thinking, competition andcollaboration are simply two sides of the same coin, nottwo totally different things. The Chinese are also big fansof win-win situation. This means that it’s better for bothcompanies (in cases with joint ventures etc). They alsouse cooperation with other companies to make peace.Another way Chinese used to avoid confrontation is byturning potentially competitive situations intoopportunities for collaboration. Instead of seeingopponents in absolute terms, the Chinese look for waysthat common ground can become part of competitivestrategy. 45
  46. 46. Language basicsEnglish word Chinese word Pronunciation • When you hear a few DutchHello Ní hăo Ni hau words from a non-Dutch withMy name is Wŏ shì Woh shuh some accent. I guess you mustHow are you? Ní hăo ma? Nihau ma be surprised and laugh at itI am fine! Wŏ hěn hăo woh hen hau friendly.And you? Nĭ ne? NinehHow much is it? Duō shăo qián? Doshau tjen • Well, if so, learn some ChineseIt’s too expensive! tài guì le Taigwele to surprise the Chinese! YouA little cheaper! Pián yí diăn Pjen-i-djen will see it’s one of the keys toThanks! Xiè Xie Sje sje build relation with Chinese!You are welcome! Bú kè qì BoekatjiCheers! Gān bēi Gambee!Yes! Shì de seh deNo! Bú shì boe seh 46
  47. 47. Conclusion• It’s a huge country• Different game rules both in life and business• What is in common: We all like Win-Win!• To win your business in China: you need to prepare yourself systematically! 47
  48. 48. Support from all directions1. Support from the Province of Gelderland and NBSOs in China Mr.Peter de Jong (known as China Man) from International Office of Province Gelderland has more than 10 years experience in China Missions, and he has dedicated to bridge the business between China and the Netherlands. NBSO-Netherlands Business Support Offices in China could support you to connect your business to local enterprises,2. HAN (Hogeschool van Arnhem en Nijmegen) support : Student projects from HAN Minor Asia Study-Doing business in China Chinese student at HAN who is looking for an internship or graduate assignment would always be practical and economical3. Support from Linhe Huang (Lin)- Freelancer China Master Editor of this booklet A Chinese with Dutch attitude and education (International Business and Management) See more info of her at the last page of this booklet.4. Recommended books by Linhe Huang (Lin): Art of war-Suntzu Inside Chinese business-MingJer Chen Myth about doing business in China-Harold Chee 48
  49. 49. The key is in YOUR hand!I wish you amazing success in this amazing country called CHINA! 49
  50. 50. References• comparison-between-chinese-and-german- culture/• Inside Chinese Business -Ming-Jer Chen• Booklet Doing business in China - Program Minor Asia Study from Hogeschool Arnhem en Nijmegen (HAN) 50
  51. 51. About Linhe Huang • Management Assistant: International affairs at Province Gelderland • Lecturer Chinese language and culture awareness at Hogeschool van Arnhem en Nijmegen(HAN) • Organizer and guide of China trips • Bachelor “International Bunisness Management” -Hogeschool van Arnhem en Nijmegen (HAN) • Graduate assignment at VMI ( One of the researchFreelancer China Master topics is how to work EFFICIENTLY with Chinese business partners 51