Business Behavior in China

Understanding Business Behavior in China

While it may seem much different than the way American businesses do things, patterns of action can be found in the business styles of any group.  Knowing how to react to Chinese business behavior requires an understanding of Geert-Hofstede’s Dimensions of Cultural Variability.  This process for judging how a culture treats certain aspects of communication can go far in explaining the reasons why they do the things they do.  For example, China is very collectivist.  This should come as no surprise, as the state is communist and is quite open about its interest in the shared experience.  China also has a long-term orientation, meaning they are more concerned with how things go in the long run than what happens in the here and now.  Finally, they have a high-power distance ranking, meaning that those in power are more removed from those below them.

Practical Business Formalities
But what does all this mean?  How can you use it in your business dealings with Chinese partners?  First of all, the fact that China is collectivist means that deals should be oriented at furthering the group, not the one negotiating.  Make offers that better the entire organization rather than boosting the benefits of management. Also, think in terms of growth rather than success.

Next, make offers that show long-term potential rather than quick, onetime gains.  If a venture seems to carry risk while having the potential to make a lot of money quickly, it may not interest a Chinese business group.  However, if an offer puts forth, gradual, tempered growth with little risk, it is much more likely to succeed in gaining support from Chinese business partners.

Finally, be careful to keep in mind who is in control of talking, and speak only to them.  Seniority is very important in Chinese business, and speaking to low-ranking workers is an exercise in malpractice.  If you are not in charge of your group in a meeting, stay quiet.  Allow one person to do all the talking.  If you are your representative, cater your words to the senior member of the Chinese group.  If they are older or more experienced than you, let them know that you see that.  If you are the wiser, do not refuse their respect.

Successful business interactions with Chinese groups require a bit of bending on your part.  You must understand why they do the things they do, anticipate their behavior, and respond appropriately.  By studying the Geert-Hofstede Dimensions of Cultural Variability, you can be better prepared to handle the situations that arise in cross-cultural negotiations.