China - Business Communication

8/9/2019 China - Business Communication

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INTRODUCTION

The rapidly growing of China economically has taken place gradually with its established

development policy which leads the world to a major change and making China one of the

strongest countries by now following the United States.

In brief, the purpose of this report is to scrutinize how the rise of China leads to several

significant matters that embroil the economic, culture, and politics in other countries. Firstly,

the economics would be all concern of threats provided by China, Chinas oil quest effects,

and China as the goldmining country. Next, for the cultural part, Confucianism, Mandarin,

and the bamboo network would be elaborated. Lastly, Chinas global power shifts, conflicts

with other countries, and influence of Sudan crisis on Beijing Olympics would be covered in

details.

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ECONOMICAL INFLUENCES

A Possible Threat

The rise of China as a global economic power is one of the massive conversion for China to

overtake the rest of the world. This arrival of a great power can be considered as a threat

especially to East Asian countries, Europe, and also the United States. With only two-fifths of

economic size of Japans, China has outdone the Japanese and accomplished as the third

largest trading economy in 2004. Chinas imports have been gradually increasing in 2000-

2005 from $225 billion to $660 billion. Even though its economy is just a small cantlet of the

United States, Chinas economy is still expanding and its economic growth on world trade has

completed about half compared to the United States just after a certain period of time(Bergsten et al. 2006, 73). It is concluded by the OECD Economic Survey of China that by

2010, China might surpass Germany and United States turning into the greatest exporter

globally. Although China used to supply low-tech goods such as clothing and footwear, but

now they have switched to notebook computers and more advance technology products.

Moreover, engineering graduates in China has also increased in its amount and which leads to

more manufacturing of sophisticated goods. One good example is provided pointing that the

assembly operations of notebook computers is now more on China instead of the previously

in-charged Taiwan (Bergsten et al. 2006, 106). Therefore in 2020, it is reported that Chinas

global income would have risen from the previously 4.7% in 2004 to roughly 7.9% and

indicating that this could have most probably infecting more on Japan, Taiwan, and Korea

(Gu, Humphrey and Messner 2008, 274).

Oil Quest to a Relationship

Chinas need for an uninterrupted and secure supply of energy resources (oil) has become an

increasingly important strategic element of Chinas international relations. Although China

demand most of its oil imports from the Middle East, recently China has spread its oil questing

to countries such as Iran, Sudan, Cuba, Angola, and Kazakhstan (Hennock 2005). This policy

helps to create ties among the nations throughout the world that may serve as the basis for

broader cooperation.

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The Goldmining Territory

Furthermore, Chinas wide economic power has attracted investors around the globe to

involve them in goldmining ploy. Chinas low-wage advantage is most likely to be a source

of comparative advantage in various industries especially those that bear a larger share oflabour costs such as footwear and clothing. Wages in China are much relatively lower than the

wages in United States. The total average labour cost is about $1 per hour for manufacturing

work in the city included benefits or bonuses paid whereas in United States it costs about $30

for that (Bergsten et al. 2006, 87). Without a doubt, firms operating in such industries can

easily gain comparative advantage. Besides, it is the Chinas continuous growing population

that caught the eye of every investor. Lo has given a very brief yet clear example: 1 billion

dollars can be earned if every Chinese buy a certain product with just only one dollar. He also

justified that throughout the increasing economic power of China, investors can foresee the

potential of greater foreign direct investment (FDI) inflows to China and at this point China is

a place for the foreigners to start their treasure hunt.

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DRAGON CULTURES IMPACTS

Return of Confucianism

In order to survive in the global market in this decade, it is important that the cultural barriers

should be taken into account. What more to say for a country with 1.3 billion people who

speaks Chinese and obey a high power distance relationship which emphasize the hierarchical

status in working places. For countries who have a wide gap for cultures with the Chinese,

research should be conducted and they have to be ready to familiarize themselves with the

differences in the market caused by the cultures (Blackwell, Miniard and Engel 317, 2003).

The long-banned Confucian is back while China on its way to great success in its economy.

They believe that it is the Confucian ideology that brought them such a major transformationin terms of politics and economics. And now, Confucianism is everywhere around the globe

with even university courses based on this ideology and the released of books and DVDs in

relation to Confucianism in every store. The Western countries started putting attention and

research on this because this could be the gate to a better outcome in working with the Chinese

(Mooney 2007, A.46).

Chinese as Global Language

Equally important is the language Mandarin Chinese which is the primary barrier to

comprehend China. China has established three institutes in Africa as a sign of Africa-China

friendship and culture swap over. The purpose of building the institutes is for Chinese

language learning and to promote its culture ever since Africa started involving in trade

cooperation with the Chinese. At this point, the language itself is very popular in Africa

whereby people are getting interested in learning Mandarin Chinese. The Africans think that

this is a good method to reshape their future generation and to prepare them for global

competition in the coming years (Mei 2007, 11).

Bamboo Network Guanxi

China is also differing from other countries on how they conduct a business. Its the Guanxi

or Bamboo network that summarizes all. For instance, the Chinese prefer to deal with people

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they know and trust. The reliance should occur before a business is to be taken place. The

relationship has to be maintained so that it is easier to deal with the Chinese in the business.

Chinas main purpose of building this network is to outspread their force and also to gain more

foreign trade for its own good. In this case, the western companies are now adapting to thisbusiness needs. The China Entrepreneurs Forum which held every year is currently the like of

western companies. Though this kind of event, local and foreign businesspersons mixed and

they get to know about the latest condition of Chinas market, search potential market as well

as establish alliance with talented businesspersons (Balfour 2007, 84).

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Political Collision

Global Power Shifts

The rise of China in its economic will definitely causes major power transition from the west

to east. Researchers named this phenomenon as global power shift. This trend had caused

anxiousness in the western world because many of the countries afraid that they are unable to

cope with Chinas domination (Gu, Humphrey and Messner 2008, 277). Western country such

as US was used to be the dominant country in the world before the rise of China. However, as

China had slowly caught up the pace of US, its diplomatic relation globally had become

drastically stronger. In that case, China and US had several conflicts between them. First,

China remains to be a communist background country while US is a conventional democratic

country. Second, both countries are competing against each other to gain crude oil supply.

Moreover, US precepts that China is posting a threat to them as the country is rapidly

developing its military (Bergsten et al. 2006, 75).

Occurrence of Conflicts

Since China had joined WTO, it had form regional free trade agreement (FTA) with 27 other

nations, for example Australia, New Zealand and ASEAN countries. On the other hand,

Taiwan strives for independence had become a major political issue for China. China uses its

dominant power in the world to pressurise those countries that recognise Taiwan as an

independent country. For example, the Republic of Macedonia learned the hard way of

crossing Beijing to Taiwan when China uses its veto power in UN Security Council to block

the passage of a peacekeeping bill to aid the country (Bergsten et al. 2006, 119). Meanwhile,

US decision to sanction Burma, Cuba, Venezuela, Iran, Sudan, North Korea and Angola had

provided a strong diplomatic opportunity with these anti-US countries (Bergsten et al. 2006,

132). Beijing had implemented the Energy Diplomacy to ensure the constant supply of oil forthe country. Russia had been a traditional allied country with China since the Cold War. Under

this diplomatic strategy, it had strengthened the relationship between the two countries.

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Genocide Olympics or Humanity Olympics

Last but not least, China has been protecting Sudan all this while and military equipments as

well as weapons were also supplied by China to Sudan for invasion use (Kristof 2008, A.23).

Although there were many objections by the United Nations towards Chinas action on Sudan,yet China is still protesting to the U.N. to provide safeguard help for Sudan (Farrow 2007,

A.17). Chinas headstrong battle against Sudan leads to the possibility of boycott of Olympics

by people concerned. The famous Hollywood director, Steven Spielberg was actually to be the

art director for Beijing Olympics opening and closing ceremonies. But it was reported that he

refused to accept the job for the reason that China bears strategic tie with Sudan. He finally

quit the post after trying to persuade Chinas President Hu JinTao for nearly a year to stop

invasion of Sudan into Darfur (Cooper and Halbfinger 2008, A.12). Ever since then,

sponsorships that would be involved in Beijing Olympics are also in a dilemma for this

undesirable attention on them (McConnon 2008, 30). The Sudan crisis brought up the

humanity issues and China is facing this human rights difficulty now and then.

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CONCLUSION

In a nutshell, the rise of China should not be an anxious matter for other countries. However, it

is ideally that every nation is ought to try to adapt to its culture for a better advantage in the

future because it is no longer the west that takeover the world, right now it is the era of the

east and the giant of east has just born. The more they learn, the merrier the competitive

advantage they would get.

(1,729 words)

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References

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China - Business Communication