Cross-cultural Orientation to China

Cross-Cultural
Orientation to China

Gabor Nagy
Intercultural Trainer for
SABIC Procurement Team

OBJECTIVES/CONTENT
• Provide critical cultural
background knowledge for doing
business in China

• Provide tips for working
effectively with Chinese
counterparts: Colleagues,
Government, Clients and Suppliers

Human Development Solutions © 2008 HRO

OBJECTIVES

•Less:
Misunderstanding and
Conflicts

•More:
Understanding, Trust,
Synergy, Performance

A brief scenario
• Peter Maxwell: You must start implementing the
marketing plan for the new product lunch ASAP.

• Zhang Yihua: Yes, but the Chinese market is
different. Would you like to research it first and
modify the plan if needed?

• Peter Maxwell: We’ve got no time for that. It has
been implemented in many countries smoothly,
no reason why it shouldn’t work here. Listen, I
have done this for 15 years, I know what I’m
talking about. Go ahead with full speed!


TIP

• China is different in many
aspects;

• China wants to be recognized
as different!


WHAT IS
CULTURE?
“Culture is the set of shared
assumptions, values and
beliefs of a group of people
by which they organize their
common life.”

CURRENT SITUATION

Globalization The power
of traditional
International Culture
norms
& practices

English Local
language interests

Culture still matters in China!


A COMPLEX COUNTRY

•Size of the country

•Transitionary period
• You will meet people and companies
from “different ends of the scale”


SUPPLIERS -1.


SUPPLIERS 2.

•Joyson
Ningbo

•BYD: 3 X 10 Million USD
spent only on industrial
automation of 3 product line

TIP FOR THE COMPLEXITY:

• A LEARNING APPROACH instead
of a TELLING APPROACH

• Effectively including the local
team (staff) in decisions


COMMUNICATION
ACROSS CULTURES


LANGUAGE CHALLENGES

• Chinglish: namecard, ppt, open the
computer, close the light…

• Many Chinese people can read/write in
English, but weak in listening/talking

• It is not customary to say “Sorry, I
didn’t understand”; “Could you repeat
the last sentence please” !


Cross-cultural communication tips
• Make people feel comfortable.

• Slow down. Simplify. Visualize.

• Humor and especially irony may not work.

• Confirm understanding.

• Multi-channels: written & spoken
communication.

• Good interpreter. Cultural informants.
• Ask people about their culture.

Do’s & Don’t’s
• Chinese people don’t expect you to
know their customs, and easily forgive
you many details (give clock as a gift,
order the wrong food, stab the
chopsticks in the rice, etc.)

• But they can’t forgive you if you violate
certain PRINCIPLES


CATEGORIES FOR FOREIGNERS
Foreign friends:
“Bad
• Respect Chinese
people and Culture Foreigners”

• Don’t criticize the
country and people

• Don’t lose temper
Which category are you in?

OTHER IMPORTANT VALUES

FACE “MIANZI”

RELATIONSHIP
“GUANXI”

OBLIGATIONS,
HARMONY
“RENQING”

APPLICATION

• Specific tips:
Working with the

Chinese
Government

TIPS
• Regular, proactive contact (avoid the “you only
talk to us when you need us”)

• Contacts on multiple levels; send the right level
counterparts; consider face

• Find out their NEEDS and drivers

• Be formal; talk about the glorious past; talk
about common interests and the bright future;
avoid being negative/critical


APPLICATION

• Specific tips:
Working with

Chinese
Clients

CHINESE CLIENTS

• Demanding, tough

• Want things done for them FAST

• Don’t care about weekends and
overtime of suppliers

• Usually bargain hard


Business with Chinese Clients
• Long courtship, long relation building and
bargaining is typical

• Building trust and harmony is important
(dinners, paying attention to human details)

• Find the personal need of Clients’ staff, and
help them to achieve it

• Guanxi, intermediary, inner information may be
crucial

APPLICATION

• Specific tips:
Working with

Chinese
Suppliers

KEYWORD: EDUCATION

• Help the Supplier understand what is
important for you (Truth instead of Face,
Quality instead of personal benefits, …)

• Educate about product details, quality,
management methods, etc.


APPLICATION

• Specific tips:
Working with

Chinese
Colleagues

The “MEETING SYNDROME”

• Chinese colleagues speak less,
often silent, don’t engage in
discussions

• They don’t raise objections, but
implementation doesn’t move
swiftly


The MEETING SYNDROME

•Why is it like that?

•How to deal with it?


No 1 MANAGEMENT CHALLENGE

• Annual AmCham Business Confidence
Survey, for year on year the number 1
– 2 challenge:

Hiring and retaining the
right talent!


Special Importance of Hiring

• Attitudes and capabilities regarding
to work can be very, very different

• Look for: positive, can do attitude;
takes ownership, doesn’t blame, has
passion for the position; takes
initiative; good team capabilities.

NEED FOR RETENTION
People with:

• Technical background;

• English skills;

• Leadership/soft skills:

ARE IN HIGH DEMAND!

Employee Needs/Retention Tips
• Effective career development / talent
management system

• Provide status symbols

• Caring leaders, good teams

• In-house long term leadership
development / OD programs

SPECIAL TIPS

• Avoid public criticism of
colleagues. Provide feedback 1-
on-1

• Organize regular team buildings
(dinners, outings, trainer
facilitated events)


LEADERSHIP STYLE DILEMMA

• Which style to use?

The Chinese Leadership style (General
or Father style)? Or?

“THE KIND EXPERT”
“HUMANISTIC
MANAGER”

Management Wisdom

攻心为上

“Gaining the heart is the
superior way”

How to start?
• “All about Shanghai and
Environs”
1934-35 Standard Guidebook:

• “The average Chinese is a
peaceable fellow, an agriculturist
at heart, a pacifist almost
always. A smile is almost always
a passport to his friendship.”

Thank you!


Cross-cultural Orientation to China

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