A Glance at Culture & Business in China

Presentation at

John Carroll University

Apr. 12, 2011

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Agenda

• What is culture all about?

• Discover China

• Foreign business in China

• Cross culture issues in business

• Opportunities in China

What Is Culture All About

The UN has a question for children all around the world

- Please discuss your opinions on food shortage issues of

other countries.

All children fail to give an proper answer because:

-Children from Africa do not know what is “food”

-Chirdren from Europe do not know what is “shortage”

-Children from Latin America do not know what is “please”

-Children from America do not know what is “other countries”

-Children from Asia do not know what is “your opinion”

What Is Culture All About

Who I Am

Chen Ming (Chris Chen)

- Founder & Executive Director of Verdcol

- Country Manager China of Thomas Swan

- Trainer in Cross Culture Communication

- B.A. in English & Cross Culture Communication

- MBA

Discover China

Discover China

Discover China

Discover China

Discover China

Discover China

Discover China

Discover China

Discover China

Discover China

Discover China

Discover China

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Discover China

• 5000 Years History

• Diversity

• Fast Changing

• Open Minded

• Relationship

• Diligency

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China’s Economy

• 30 Years Development (since 1980)

• Diversified Marketplace

• Root in Manufacturing, Emerging in Service

• Low-Mid End of the Global Value Chain

• Strong Government Interface

• Emerging Capital Market

Key issues need to be resolved:

• Speed or Sustainable

• Attitude on IP and Success

• Social Security System

• Education

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Foreign Business in China

Cross Culture Issues in Business

Case One:

In 1980s, a Chinese diplomat in US was invited to a ball with his wife,

and his translator.

An American guest saw his wife and complimented “Your wife looks

gorgeous!”

The Chinese translator translated it to the diplomat, and the diplomat

replied with smile “Nali Nali!”, then it was translated as “Where Where?”

The American guest was confused, but smartly replied “Everywhere!”

Cross Culture Issues in Business

Case Two:

There is a senior management meeting at an American, Australian and

Chinese joint venture discussing about some sensative issues.

During the meeting:

-The Chinese managers are all quiet

-The Australian managers speak a lot

-The American managers just want to know what to do after the meeting

At the end of the meeting, the Australian CEO says “let’s schedule another

meeting to discuss action plans”, and as soon as the meeting is over, Chinese

managers starts to discuss the issues internally.

Cross Culture Issues in Business

Case Three:

A UK company is discussing a JV project with a Chinese chemical

manufacturer. The Chinese boss shows UK visitors many pieces of lands he

owns but with nothing on it. During the discussion, the Chinese want to sketch

out an JV agreement ASAP and then starts to purchase a new piece of land,

while the British are wondering:

-Why they show me so many pieces of land with no development on it?

-Why purchase a new piece of land even without knowing whether there will be

a JV or not?

Distinction of Core Values

China USA

Sociality Individuality

Authority Equality & Legislation

Implicative

Descriptive

Straightforward

Quantitive

Negotiating in China

Chinese

Start

Objective

Western

Chinese Satisfaction Model

Must Knows for Doing Business in China

• There are more business done on dinner table than in meeting room

• “Ganbei” is essential to show respect and build up relationship

• Truth always found at informal private talk

• You do not hear “No” , however, it doesn’t mean “Yes”

• Identify the real decision maker and develop relationship

• 40% misunderstandings are mis-translation

40% misunderstandings are conceptual

20% real disagreements

• Clarify objectives from time to time and be patient in negotiation

• Respect and consult your local expert

• Many Chinese entrepreneurs do not use email, do not reply SMS.

Dining in China

• Seating

- host to face the door

- VIP next to the host, then from senior to junior

• Food

- mixer of everything

- dishes served together

• Ganbei

- great chance to be close, do not miss it

Voices from The Chamber

• The Chinese and China have a strong sense of history.

They are generally patriotic.

• Who knows what the world would be like today if China had not

shut its borders to outside influence in the mid-1400’s.

• Education and self advancement have always been given a prominent

place in Chinese society

• A lot of very bright people, do not underestimate the Chinese, or the Chinese

system. China can achieve a lot if the goal is agreed

Opportunities in China

• From the East to the West

• Chinese middle class is thirsty for life quality

• Medical & Education

• Mobile trend