Blog Post 3 – Chinese Business Relationships

When seeking business opportunities with Chinese organizations, it is important to take the time to reflect on their singular culture and note the differences and similarities to our own. While one can safely assume that a Chinese organization’s representative to a western organization will be well versed in our culture, it would be a disservice to not consider theirs as well when strategizing a planned relationship with them. Chiefly, which styles of interaction would be more likely to be successful and what sorts of relationships one could hope to build with their Chinese counterparts.

Beginning with introductions, we see that while Americans and westerners, in general, are typically very outgoing and friendly with those they know or are trying to build a relationship with, especially when business deals are in the equation. We have all encountered salespeople who immediately treat their prospective customers with excessive friendliness and familiarity, in order to try and establish an immediate and more intimate relationship with their customers in order to achieve a sale.  Among other things, this exchange seeks to generate faux mutual respect to engender trust in the salesperson without taking the time to do so in a more genuine manner. Though we are used to western salespeople acting in this way, it would be quite jarring to a Chinese businessperson or representative. This is because the Chinese place far more value in the development of trust and respect through long-term relationships with people and their organizations. This is in part because of their culture’s greater emphasis on a more personal form of respect than westerners are used to practicing. We expect our respect paid due in large part to our accomplishments and experiences. See any executive’s office wall for examples: diplomas, memberships, pictures with VIPs, etc. The Chinese place far more value in a trust-based form of respect that is difficult to build in any other way than the long-term demonstration that one is worthy of respect and trust (Abramson & Moran, 2018, p. 442). This flies in the face of the western predilection to make things happen as fast as possible, and it can be difficult for us to accept that the best way to build an intimate relationship with a Chinese business partner is to commit to a lengthy and seemingly mild relationship. However, demonstrating patience and the ability to be depended upon over the course of a long relationship will endear a westerner to their Chinese counterparts will typically result in a lasting and resilient partnership.

It’s not all doom and gloom, though. If one assumes that you have built a solid relationship with your Chinese counterpart, you can also reap the rewards of their culture’s excessively low uncertainty avoidance and equally high long-term orientation scores (Pennsylvania State University, 2021). Referring here to India and China’s low uncertainty avoidance scores compared to the world average, Pennsylvania State University states, “this is good because introducing new plans to both countries would not be seen as threatening”. Given this though, it should not be assumed that the manner in which you present your new plans to China will be universally accepted. These plans should be introduced in a manner befitting the Chinese culture. If you can appeal to the Chinese culture’s sense of long-term orientation (nearly 1.5 standards of deviation higher than the global average), you stand a good chance of finding a profitable and stable market for your product.

Of course, these factors barely scratch the surface of the immensely complex and rich Chinese Culture. However, if you and your organization commit the time and effort, you will find that the connections you establish in China will be some of the most valuable you ever make. If you show yourself to be trustworthy and respectful, you will find your Chinese business relationships to be some of the most wholesome and resilient you will ever establish.

References

Abramson, N., Moran, R., (2018). Managing Cultural Differences. 10^th edition. Routledge. New York, NY. P. 413

Pennsylvania State University (2021). Lesson 10: Focus on China and India–OLEAD 410. [Online course lesson]. https://psu.instructure.com/courses/2146712/modules/items/32847703