Conducting business in China---culture impact

What are the main factors that accomplish a successful business? As well known, the company should have a market strategy and a surefire analyzes. Regardless of general views, what else relevant within a succeed business? The answer is “hidden rules” that needs to be observed from cultural aspects.

Since two thousands years ago, Confucianism became a ruler in lives to measure people’s behavior. It emphasis people’s obligation towards one another is based upon the relationship. People have roles as husbands, wives, parents, children, brothers or sister. No matter which roles we are in, we have our duty. Confucianism stresses duty, sincerity, loyalty, honor, respect for age and seniority. During business, senior have the right to speak first. Try to understand the culture is the first step to go into business.

There is no denying, non-verbal communication is a vital form of communication that reveal people’s real feeling. When we interact with others, we continuously give and receive countless wordless signals. By way of a personal illustration, I have never heard my parents say, "I love you" to me, not even once, although I know without a doubt that the love is there. I know it by the feelings and how they act. In China, actual words simply don’t mean as much as they do. Furthermore, there is an interesting thing as a part of culture is “face saving”, roughly translated as good reputation or respect. This is when one's actions or deeds have been exposed to people; the partner should provide an alternative that can avoid feeling insulted or disrespect.

By knowing the culture, the business can be started at a higher point. This is the time to negotiate with government. America companies often sign an agreement with promises from local officials that the central government can not enforce their rules into the states. On the contrary, the Chinese central government regulations can apply on each local place, which cause the process more complex. U.S. Department of Commerce. For instance, Americans more likely use direct way to do business, which is give more consideration on whether the business can bring more benefits, not the private friendship between businessman. However, business is not going well this way in China. The policy is driven by politics. It’s a unique thing of socialism.