For the economy and the Chinese people, China’s rapid economic development is a blessing. But as the rest of the world tries to understand China, the speed of changes in this country can make the situation difficult.

There are already formidable cultural differences between Chinese and foreign business people. However, the rapid development of China means that differences are not only big, they also keep changing!

Gabor Holch, business communication consultant and CBC’s General Manager shows how China changes faster than the books Western business people read about it when they prepare for negotiations.

Many foreign business representatives have an outdated idea about China and the Chinese. Differences are not only big, they also keep changing.

The result of this situation is that when they come to this country, many foreign business representatives have an outdated idea about China and the Chinese. Most foreign countries do not change so quickly; when they read up on China, foreigners may take a 5-10-year old book from the shelf, and of course read about facts that no longer exist.

Moreover, Western business publications often refer to traditional ideas to explain Chinese business methods and etiquette, while Chinese people become increasingly modern and often ignore old wisdom for new ideas about effectiveness and success.

Here are a few stereotypes that both Chinese and foreigners should be cautious about, and a few tips about how to deal with them:

The Taoist

Taoism (also known as Daoism) has been a popular exotic idea in the West, and most people know about its origin and some of its basic concepts. For this reason, many foreign business people I met had thought that Chinese people value harmony with nature above all, like to take all things slowly and do not make efforts for success or wealth.

• If you are a foreigner, you have to realize that Chinese people value Daoism, but have incorporated it into the modern ways of life and business. You may not get the right answers about Lao Zi, but you can learn the Taoist values from Chinese business people, such as flexibility and patience.
• If you are Chinese, you have to be aware that a high level of flexibility and patience is something that you do not share with your foreign business partners. When agendas change, deadlines are not met or standards are not clear, Chinese change their action quickly, while Westerners need more time to come up with a new, confirmed arrangement.

The Confucian

The Confucian tradition of family and society is a favourite explanation tool of Western business publications about China. Consequently, many foreigners expect their Chinese partners to be unable to say “no” out of respect, and behaving like Qing-Dynasty film characters.

• If you are a foreigner, you will feel more of Confucius than Lao Zi at the meeting table. Remember to focus on the business issues, and do not try to apply pressure by questioning your business partner’s competency or credibility.

• If you are Chinese, do the same and focus on the business issue at hand. We usually suggest that when negotiating with Westerners, Chinese people should not worry about ‘face’ (??) so much. Westerners feel OK about a clear “no” when something is not possible. A face-saving answer, which foreigners do not understand will create problems for both sides.

The Maoist

Finally, I have met foreigners who, based on films and books, expected to see the China of the 1970s when they came to do business here, with blue uniforms and red flags everywhere. Of course, what they see is the China of the early 2000’s, which often looks futuristic. So what did the past 50 years leave behind?

• If you are a foreigner, be aware that middle-aged generations in China appreciate Deng Xiaoping’s pragmatism more than any political dogma, and they are opento modern management methods. Chinese love doing business.
• If you are Chinese, make sure that your foreign partner understands both the old and the new in China. China is modernizing at an incredible speed, but the legal system, social security, financial services and many practical solutions still require in-depth knowledge about the local circumstances. One more reason for the two sides to cooperate!

Gabor Holch, business communication consultant and CBC’s General Manager shows how China changes faster than the books Western business people read about it when they prepare for negotiations.

Gabor gained his own negotiation experience as a UN and OSCE official in Europe, and a consulting professional in Europe and Asia. As the leading executive of CBC, Gabor has worked together with numerous multinationals, large local companies, government and academic institutions in China.

Tags: cross cultural

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