a glance at culture & business in chinawebmedia.jcu.edu/eas/files/2011/09/chris-chen-a...apr 12,...
TRANSCRIPT
A Glance at Culture & Business in China
Presentation at
John Carroll University
Apr. 12, 2011
2
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