Feb 01

The Year of the Rabbit – Beliefs and Superstitions when Doing Business in China

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector No Comments »

Are you doing business in China and wondering what all the interest is right now around the new year of the rabbit? Or perhaps you’ve noticed that there are good offers on Chinese foods in the supermarket this week? Maybe you’ve heard of Chinese New Year, but do you know what it is and why it’s celebrated now and not in January?

Chinese people around the world are getting ready to welcome their New Year on Thursday February 3rd. For about 15 days Chinese will celebrate, focus on certain practices and reflect on their lives. Anyone doing business in China or working with Chinese counterparts during this time should be aware of the Chinese New Year and how it might impact you.

Chinese laterns 3 tom hall i The Year of the Rabbit – Beliefs and Superstitions when Doing Business in China

© istockphoto.com/ Tom Hall

The Chinese calendar is a lunar one, just like the Western calendar, with the start of each year coinciding with a new cycle of the moon. A full cycle lasts 60 years and is divided into five further cycles, each lasting twelve years. Each year is named after an animal. Much like Western zodiac signs, each animal in the Chinese calendar has particular characteristics that many Chinese believe will influence the lives of those born under its sign.

This year 3 February will see the end of the year of the Tiger and the beginning of the year of the Rabbit. The Rabbit is considered as calm and sophisticated, a kind of classy peacemaker who likes artistic ventures as well as the tranquillity of home. Those who are born in the Year of the Rabbit are often described as strong, relaxed and friendly as well as compassionate and creative. In terms of careers, Rabbits are believed to make good philosophers, politicians or doctors.

Knowing what year it is in the zodiac calendar and what sign you are can be a nice way to start a conversation and build a relationship when doing business in China. If you’re not sure what Chinese zodiac sign you are, take a look at the following table:

Rat 1924 1936 1948 1960 1972 1984 1996 2008
Ox 1925 1937 1949 1961 1973 1985 1997 2009
Tiger 1926 1938 1950 1962 1974 1986 1998 2010
Rabbit 1927 1939 1951 1963 1975 1987 1999 2011
Dragon 1928 1940 1952 1964 1976 1988 2000 2012
Snake 1929 1941 1953 1965 1977 1989 2001 2013
Horse 1930 1942 1954 1966 1978 1990 2002 2014
Sheep 1931 1943 1955 1967 1979 1991 2003 2015
Monkey 1932 1944 1956 1968 1980 1992 2004 2016
Rooster 1933 1945 1957 1969 1981 1993 2005 2017
Dog 1934 1946 1958 1970 1982 1994 2006 2018
Pig 1935 1947 1959 1971 1983 1995 2007 2019

Someone with a Western and perhaps more scientific or rational viewpoint may be reluctant to consider such ideas as anything more than superstition. As China is home to an ever growing and modernising middle class, it is becoming increasingly difficult to measure the influence of such old traditional ideas on Chinese society. But while China’s rise is undoubtedly a modern phenomenon, Chinese society remains rich with trends and traditions that have roots going back millennia.

Understanding the intricacies of such a reality requires a clear understanding of how traditional values influence modern day Chinese behaviours, both in business and in everyday life. Anyone doing business in China should take a cultural awareness training course to develop the required understanding, skills and strategies to effectively navigate the complexities of Chinese culture. Showing an appreciation for and understanding of traditions like Chinese New Year will go a long way towards building effective and long-term relationships when doing business in New Year.

In the meantime, don’t hesitate to send a friendly greeting to your Chinese counterparts this Thursday. Or as in the traditional Chinese custom on New Year, you could give them a small gift wrapped in red paper or in a traditional Chinese red envelope.

May the year of the rabbit bring you much success and happiness!

© Communicaid Group Ltd. 2011

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Jun 24

Cross Cultural Communication: The Magic of a Smile

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector No Comments »

In the international business world the first face-to-face meeting with business counterparts can significantly influence the success of the relationship, negotiation or contract. Many people underestimate the impact of first impressions which can either unite or alienate people forever.

Psychologists studying the phenomenon of ‘first impressions’ suggest that if the person wants to be accepted and trusted by his or her peers, all verbal and non-verbal messages should complement each other. Practically, this means that none of the sent signals should go into conflict with another signal sent at the same time.

Team businessYuri Arcurs i Cross Cultural Communication: The Magic of a Smile

© istockphoto.com/ Yuri Arcus

 

For example, a British person saying ‘yes’ while rubbing their head and raising their eyebrows may not give the message of ‘yes’ to the other person but rather a message of ‘I’m saying yes but I’m not really sure’. While the person receiving the message understands something different than what the sender intended, the sender does not often realise that the receiver hasn’t understood their message in the first place.

Examples of where people use conflicting verbal and non-verbal signals increases significantly in intercultural interactions. This is primarily because a non-verbal signal such as gestures or facial expressions in one culture can often mean something completely different in another, frequently resulting in misunderstandings and confusion.

Smiles are something that can easily be misinterpreted by people from different cultures. Smiling in North America is usually a sign of happiness and confidence as well as an effort to build rapport. In Russia, people often smile when they are happy or when something really funny takes place but you may find they do not smile quite as much as their counterparts in North America. Meanwhile, in many Asian cultures, smiling is often a signal that they are embarrassed or uncomfortable.

Take the example of an American manager who was once visiting some business counterparts in China to celebrate the opening of a new factory. The Chinese wanted to be sure everything was perfectly organised to really impress their new manager so they booked the American manager in a nice hotel and organised lots of social events in the evening. The morning after the first evening, the American manager woke to find no hot water in the hotel. He went down to the reception to complain but was greeted with a smile. He was already frustrated about the situation and felt even more frustrated by the smiling response from the receptionist. He later mentioned the situation to his Chinese counterparts in frustration and they too, smiled in return, and gave a small apology. This situation did not significantly hurt the visit or relationship, but it did leave the American manager feeling very confused about their reaction.

This is an example where a simple smile was completely misinterpreted. The North American may have thought the Chinese receptionist was smiling as they thought the situation was funny but the Chinese receptionist most likely felt uncomfortable and did not have a solution for the situation so was therefore trying to prevent loss of face.

This is a very basis example of where a simple smile can easily be misinterpreted and change the perception people have of each other. This kind of communication breakdown can be more effectively anticipated and understood by taking part in a cross cultural training course such as Doing Business in China. Intercultural Training China programmes such as this can help business people understand Chinese values such as face as well as the different communication styles and non-verbal gestures such as smiling to ensure they correctly interpret and understand any interactions with their Chinese counterparts. By accentuating the differences between cultures, intercultural training can help anyone doing business internationally pay more attention to the details and suggest strategies to overcome any possible cross cultural miscommunication.

© Communicaid Group Ltd. 2010

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Mar 16

China: Business Goldmine or Cultural Minefield?

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Ever since details of Marco Polo’s adventures in Medieval China began to reach Western shores, China’s image grew in the imagination of early Europeans as a land of riches and opportunities awaiting whoever was courageous enough to make the long journey there.

Now, in the twentieth century, things are not too different. Since the communist regime in China opened the country’s borders to trade, Western companies have gone to great lengths to establish business ties there.

Results, however, have been mixed, and what was often idealised as a goldmine revealed itself to be a cultural minefield. While there are of course a number of cases where Western businesses have performed successfully in China,  there are others where organisations have encountered many challenges doing business in China, ranging from logistical to linguistic or cultural.

Game dice China i China: Business Goldmine or Cultural Minefield?

© istockphoto.com/Tigress

 

When China first opened its economy to international trade and business in the 1980s, much of the debate in the West centred on the most effective way of gaining a stronghold in what was a new and unknown market. The majority of international companies doing business in China opted for Joint Ventures (JVs) with Chinese counterparts which ended in mixed results.

The different experiences of Western companies doing business in China shows success and failure factors vary greatly, from purely technical reasons such as low quality and uncompetitive products, to serious cultural misunderstandings as to how to work with Chinese colleagues and potential Chinese partners.

Maytag’s case in particular is one example of Western-style management gone wrong. Once the third largest manufacturer of large home appliances in the US and a company that prided itself on the use of modern management methods, Maytag entered the Chinese market through a JV with the Rongshida Group.

This had developed from a small, collectively owned enterprise and had a corporate ethic of ‘harmonious business’, so when Maytag decided to launch a restructuring programme in the face of increasing competition by other Western companies, the relationship between the JV partners eventually collapsed leading Maytag to eventually withdraw from China.

However dynamic and increasingly modern, China remains a heavily traditional society where relations – whether in business or in everyday life – are heavily dependant on a system of ‘face’ and ‘guanxi’, a term which can be translated as “relationships” or “connection”. A principle that binds friends and associates in relationships promoting trust and cooperation, ‘guanxi’ commits a friend to do what he can for another friend when called upon and violating this implies a loss of face and reputation.

Despite the many challenges of doing business in China, many companies have discovered ways of not only dealing with Chinese cultural differences but harnessing them to create very successful business ventures and opportunities in China. One of the most effective is to pre-empt any issues related to business practices and customs by providing international staff and management with cross cultural training programmes such as Communicaid’s Doing Business in China.

Maytag Case Study Source: China & World Economy (67-79, Vol. 12, No. 5, 2004)

© Communicaid Group Ltd. 2010

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Mar 10

Challenges of Doing Business in China

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Chinese businessman 4 hfng i1 300x199 Challenges of Doing Business in China

China’s booming economy, one of the largest in the world, is a magnet for foreign business investment. According to the China National Tourist Office (CNTO), China is a multi-racial country with over 56 ethnic groups. In the long course of its development, all the nationalities have joined in the effort to create the great culture that China represents.

The earth’s most populous and third largest country is often thought of as synonymous with ceremony, etiquette, ancient history and culture. International organisations will find a wealth of benefits to doing business in China however there are a few cultural challenges that must be taken into account to avoid misunderstandings, conflict and substantial direct and indirect costs to the organisation.

Cross-cultural training programmes for business and management such as Doing Business in China increase an organisation’s awareness and understanding of any potential cultural stumbling blocks to ensure that all involved create strategies for drawing benefits from these differences. The following are six of the key cultural concepts international organisations face when setting up or doing business in China.

Rules and Etiquette – Many aspects of Chinese society still strongly adhere to rules of etiquette. Elements of Chineses business etiquette code include rituals of gift giving and receiving (“songli”), accepted practices with regards to personal space and rules regarding dealing with older people or people in important positions. Various conventions also exist with regards to body language. For example, it is considered rude to point with just one finger and therefore Chinese people tend to indicate with an open hand.

Mianzi – When doing business in China, it is important to pay attention to the protection of “mianzi” or “face”. Face is entwined with personal pride and forms the basis of an individual’s social status and reputation. Damaging face through overt confrontation or criticism threatens the foundation of Chinese hierarchy and can be disastrous for business relationships in China.

Hierarchy – The strong influence of Confucianism is still evident in many Chinese attitudes and actions. The Confucian philosophy emphasises the importance of responsibility to one’s community, harmony and deference to authority. This is evident, for example, in China’s hierarchical system which tends to link respect, responsibility and authority to age, status and gender. When doing business in China, greet another person with a slight bow or a nod of the head and a firm handshake. Dress tends to be quite formal in the workplace, with men usually wearing a suit and tie and women in dress suits. When addressing other people, the last name should be used preceded by “Mr.,” “Mrs” or another relevant title.

Chinese businessman 4 hfng i1 300x199 Challenges of Doing Business in China

© istockphoto.com/hfng

Communication Style – Differences in ways of communicating can often be a source of misunderstanding. As a result, international organisations doing business in China are sometimes left confused and struggle to achieve their business objectives if they don’t possess the required information. Chinese have a preference for indirect, high context communication. In other words, Chinese people often imply and infer rather than verbalise directly. Chinese also place a high importance on the impact of body language, relationships, emotion and other non-verbal communication. Conflict is best dealt with in private and indirectly. Equally, it would be wise to note that smiling is not necessarily a sign of happiness but can also result from worry or embarrassment.

Guanxi – meaning “relationships” or “connection” is a fundamental aspect of Chinese culture. Guanxi translates to a principle that binds friends and associates in relationships, promoting trust and cooperation, committing a friend to do what he can for another friend when called upon. To violate guanzi is to risk losing face and reputation (or that of another’s) and honouring it has been the main way of accomplishing every day tasks in China for centuries.

Communism– China is governed by a communist party which pervades into many aspects of life, including the economy and religion. The country is officially atheist. Topics such as politics and religion are best avoided in conversation when doing business in China until you have become well acquainted with your colleagues.

Recognising the cultural differences which exist when doing business in China is only the first step. International organisations must also understand the reasons behind these cultural challenges of doing business in China to develop strategies for maximum effectiveness. A Doing Business in China cross cultural training programme will help you turn challenges into benefits and maximise the potential of doing business in China. Moreover, it will contribute towards the development of an interculturally competent workforce, a huge advantage in today’s fiercely competitive global world.

© Communicaid Group Ltd. 2010

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Mar 01

Benefits of Doing Business in China

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector No Comments »

chinese door 2 i3 300x234 Benefits of Doing Business in China

©istockphoto.com/Hsing-Wen Hsu

China’s role as a global economic leader is by now consolidated, having radically changed its economy from a predominantly agricultural one that was generally closed to international trade, to a market oriented one with dynamic banking and private sectors, China is now top of the list of countries for whoever wants to expand and invest internationally.

In 2008, foreign direct investment in China rose to 108 billion US dollars making the country’s economy the largest in the world second only to the US. With a labour market both large in size and high in quality, and a government so committed to international development that it has recently singled out key sectors for tailored government support, doing business in China should be high on the agenda of any company across the world.

While China’s first push was based on the export of highly competitively priced goods, its growth in recent years has turned it into a major importer of western products. Coupled with the size of its population and the rise of the Chinese middle class, this offers any international company doing business in China access to one of the world’s most important markets for an immense variety of services and goods.

At first glance doing business in China might appear difficult due to cultural differences. However, these should not be seen as obstacles as they can often be turned into a competitive advantage. For example, Chinese society is generally considered a very traditional one, where interactions are governed by status, and fostering good relationships with the right people is key to success. At the same time, the Chinese are, like many westerners, goal driven, striving to be successful in everything they do.

By approaching negotiations or other dealings with a similar objective of achieving the best for both parties, a shared sense of commitment is reached which will result in success in the short and long-term, as well as in the likely establishment of a long-lasting business relationship. Once your business has established strong ties with Chinese counterparts, their commitment and drive to expand internationally will open new avenues that go well beyond China’s borders.

Chinese people have a very high work ethic and look to succeed by developing a wide array of professional skills. As a result, those doing business in China will nearly always be dealing with highly committed and competent individuals who are keen to excel not just for their personal gain, but also for the larger aims of their company. This, combined with the high level of organisation and discipline within Chinese companies, makes doing business in China not only profitable, but also highly rewarding.

chinese envelope coins i1 300x199 Benefits of Doing Business in China

© istockphoto.com/Gabrielle Chan

As mentioned above, by doing business in China international companies gain access to a large pool of highly educated and talented employees. According to the BBC, China’s higher education system is now the largest in the world, both in terms of overall enrolment and in the number of P hDs awarded. This home grown labour market ensures that anyone doing business in China will be dealing with the best and brightest in a wide array of disciplines, many of a very technical nature. China’s commitment to education makes it a very attractive place for organisations doing business in overseas markets.

Harnessing these benefits when doing business in China is only possible if international organisations have the skills and know-how necessary to navigate the many geographic, linguistic, religious and cultural differences present in Chinese culture. International organisations employing people in China or working with Chinese nationals on a regular basis should run a series of cross-cultural training programmes such as Doing Business in China to ensure they develop the level of intercultural competence they need to successfully deal with the many cultural differences in Chinese business.

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