3 Factors for Ensuring Growth in China

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Ms. Daisy
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"Culture and Business!"
Ms. Daisy   3/4/2011 3:54:10 PM


It is very interesting to see the conflict of cultures and the diversity in the approach of potential business partners coming into play in this article. The differences in approaches and understaning of the prospective business partners being the determining factor in breaking the deal.

The complexity of cultures and human relationships comes into play in many developing economies and with the people doing business in these regions. This cultural differences has to be factored into the approach and discussions with the partners. Obviously the Chinese culture plays a lot of emphasis on authority or authority figures to give legitimacy to a business transaction. It is also a form of security for the Chinese to have the involvement of a regional or national authority, or an institution of repute to guarantee that the business transaction is foolproof.

Unlike in the US where there is a separation of State, Public, and Private business; China and many other developing economies place value on government involvement especially with a foreign entity. The governement entity is seen as assuring quality and giving validity to the transation.

Relationships in these places also is the foundation of trust and business alliance. Initiation of relationships with foreigners within developing countries including China is conducted cautiously. Then, the consistency of contact and cultivation of the relationship with the same set of people assures the potential business partner that the relationship is serious, legitimate, and could potentially thrive because of the personal involvement and commitment of the same executives. it is very confusing at best and suspicious at worst  when the contacs are frequently changing. It signals chaos to the Chinese and unreliable persons that cannot keep a consistent relationship.

Wale Bakare
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Chinese Culture
Wale Bakare   3/4/2011 6:25:05 PM


It is quite evident that China will continue to play vital role in world businesses. 

Both the already established and prospective businesses could adopt methodology or business & cultural scheme to address how culture and custom of Chinese people be deeply learnt, and understood.

 If new business entrants into China already have this in mind, it could effectively rapid business growth.


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Re : 3 Factors for Ensuring Growth in China
tirlapur   3/5/2011 2:32:48 AM


  Thanks for the detailed analysis of the factors. You have touched upon factors which many would tend to overlook, like "having a significant personal dimension helps".

What is more surprising to me is the absence of strong national firm. Any particular reason for this, or is it that government laws are such that it doesn't allow any single entity to dominate the national scenario ?

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Re: "Culture and Business!"
eemom   3/6/2011 12:02:25 PM

This is a very interesting article and a good insight into the way Chinese companies do business.  Thanks for the analysis.

It is interesting that Chinese companies put so much weight into personal relationships and ensuring loyalty and cooperation among top level management.  I think this is a good model to adopt in and out of china.

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Jay_Bond   3/6/2011 6:17:57 PM

 This is a very interesting article and one many executives should read. While many executives feel they have all the tools necessary to do business, many fail to invest the time researching the cultural differences that are necessary to do business. Americans are so used to quick and impersonal business deals. Many cultures, including China and Japan, take their business relationships very personal. Without proper knowledge many deals could fail. It's a shame to lose business by not being thorough and knowing your customers. 

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