FYI: Cultural Considerations

China has a long history of more than 5,000 years and has experienced feudalism, communism, civil war, invasion and now a booming market economy. Since 2001, following its entry into WTO, China offers huge potential market for investment, sales, and cultural exchanges. More and more organizations are venturing or looking to venture into China. There are four key Chinese values one should keep in mind for a smooth and successful transaction.

- Mian–zi (literally means face)

Mian-zi is the personal pride and is the basis of a person’s reputation and his or her social status in any given situation. In the Chinese business culture context, “saving face” or “losing face” and “giving face” are essential for successful business exchanges. Causing someone to lose face through public humiliation can damage business relationships. On the other hand, praising someone (in moderation) in the presence of his or her professional or social group is a way to “give face” and earns respect and loyalty.

- Guang-xi (literally means relationships or connections)

Guang-xi is the network of elaborate relationships promoting cooperation/trust and, for centuries, has been and continues to be the primary vehicle for accomplishing everyday tasks.
These are sincere, supportive relationships based on mutual respect. Guang-xi is a fundamental aspect of Chinese culture. In the world of business, possessing the right guang-xi is necessary for surviving the difficulties and frustrations that are often encountered in life, as well as in business.

- Keqi (literally means guest behavior)

Keqi, meaning guest (ke) and behavior (qi) translates as “thoughtful, courteous and refined behavior”. In business terms, this simply means that you must demonstrate humility and modesty. In negotiations especially, humbleness and patience are key.

- Confucianism

This is an ethical belief system based on the teachings and writing of the sixth century philosopher, Confucius. In this system, emphasis is placed on the concept of relationships with total and complete respect for personal responsibility and obligation.

This philosophy has been the most vital cultural factor in the development of Chinese society, and it remains effective in Chinese business culture today. Confucianism is responsible for the preservation of surface harmony and the collective good.

Sources
Asia Times - http://atimes.com/
Asia Pacific Management Forum - www.apmforum.com/news.htm
South China Morning Post - http://www.scmp.com/
Time, Asia - www.time.com/time/asia