Essay Wow!

The Outline of China.

Background of China

China is believed to have the oldest continuous civilization, which has over 4,000 years of verifiable history. Beijing is the capital of China and is the focal point for the country. The official language is standard Chinese, which is derived from the Mandarin dialect. Most business people speak English. Though there are nearly 200 dialects in China, there is only one written language.

The People’s Republic of China is a socialist country under the leadership of the Communist Party of China. The Chinese government promotes atheism although the constitution guarantees freedom of religion. The Chinese practice a variety of religions and the three main religions are Buddhism, Taoism or Daoism, and Confucianism. And there are also a small number of Christians, Islam, and several others.

China is the most densely populated country in the world with approximately 1.3 billion people. And most of the populations are Han Chinese. However, the growth rate has slowed to less than 1% per year, due largely to laws limiting children to one per couple. In an effort to control the population growth, couples are allowed to have only one child. Second children are possible, but at a very high penalty. This policy has had success in the large cities and more affluent areas where monitoring and control is more manageable.In areas further away from Beijing and in the more remote the area, it has had less success.

Everyone in China is entitled to 9 years mandatory education and adult literacy is nearly 81%. There are about 961,000 schools at all levels. And there are approximately 1,080 universities and colleges, many of which have on-line websites.

Economic Overview

In late 1978 the Chinese leadership began moving the economy from a sluggish Soviet-style centrally planned economy to a more market-oriented system. Whereas the system operates within a political framework of strict Communist control, the economic influence of non-state organizations and individual citizens has been steadily increasing. The authorities have switched to a system of household and village responsibility in agriculture in place of the old collectivization increased the authority of local officials and plant managers in industry, permitted a wide variety of small-scale enterprise in services and light manufacturing, and opened the economy to increased foreign trade and investment. The result has been a quadrupling of GDP since 1978. In 2001, with its 1.27 billion people but a GDP of just $4,300 per capita, the GDP of China reached 7.3% in 2001. Agriculture and industry have posted major gains, especially in coastal areas near Hong Kong and opposite Taiwan, where foreign investment has helped spur output of both domestic and export goods. On the other hand, from 80 to 120 million surplus rural workers are adrift between the villages and the cities, many subsisting through part-time low-paying jobs. Another long-term threat to continued rapid economic growth is the deterioration in the environment, notably air pollution, soil erosion, and the steady fall of the water table especially in the north. China continues to lose arable land because of erosion and economic development. Beijing will intensify efforts to stimulate growth through spending on infrastructure, such as water control and power grids, and poverty relief and through rural tax reform aimed at eliminating arbitrary local levies on farmers. Access to the World Trade Organization strengthens China’s ability to maintain sturdy growth rates, and at the same time puts additional pressure on the hybrid system of strong political controls and growing market influences.

The Hofstede theory on China

According to the work of Geert Hofstede, let’s analyze the culture of China.

1.Power Distance

We can find that Chinese PDI is the second highest index in the Hofstede theory, which indicates that inequalities of power and wealth have been allowed to grow within the society. This society is more likely to follow a caste system that does not allow significant upward mobility of its citizens.

2.Individualism

The much lower index of individualism indicates that China has a society of a more collectivist nature with close ties between individuals. These cultures reinforce extended families and collectives where everyone takes responsibility for fellow members of their group. It can be attributed primarily to the Communism and its emphasis on a collectivist culture.

3.Masculinity

Since China is a country with a long history of feudality, it’s easy to understand that China is a high masculine country. Though many western cultures enter China, the whole society still experiences a high degree of gender differentiation. In this culture, males dominate a significant portion of the society and power structure, with females being controlled by male domination, especially in the less developed and remote areas.

4.Uncertainty Avoidance

The relatively high uncertainty avoidance index indicates China has a low tolerance for uncertainty and ambiguity. It has more written rules, less risk-taking by managers, lower labor turnover, and less ambitious employees.

5.Long-Term Orientation

We can easily find that the LTO is the highest-ranking factor in the figure. It indicates China prescribes to the values of long-term commitments and respect for tradition. This is thought to support a strong work ethic where long-term rewards are expected as a result of today’s hard work. However, business may take longer to develop in this society, particularly for an “outsider”.

The Most Important Characteristics of Chinese Culture

Two of the most important concepts in Chinese culture are guanxi and face. The first, guanxi, has been defined as sharing favors between individuals, connections, relationships, and the ability to exert influence. The second, face, also called mianzi: saving face, losing face, and giving face.

A relationship marketing approach to Guanxi

Guanxi, meaning connections or relationships is an important characteristic of Chinese culture and at the heart of doing business in China. It describes the intricate network of relationships and mutual trust that influence behavior of individuals within groups.

Foreign companies often underestimate the importance of guanxi when transacting business and the time needed to build these relationships. It works efficiently in Chinese people’s social lives. Through “guanxi”, people can get a job for which they have no experience and skill. Those who have “guanxi” usually get what they want because the connections network is 99% workable in China. Obtaining goods or services through connections is informally referred to as “going through the back door” (zou hou men).

In the commercial world, a business will run much easier with good relationships with vendors, distributors and, most important, the municipal, regional and central government ministers whose disfavor can cripple a company. Guanxi can take the form of a night of karaoke with the local fire department regulator in order to get a new computer room plan approved. Or it could mean hosting a banquet with a customs official to make sure precious hardware shipments arrive at some point. And the high regard for relationships should apply to people inside the company as well as outside. A boss can gain staff loyalty and support by breaking the professional formality to form friendships.

The Chinese Concept of “Face”

“Face” could be saved or lost in China. It can be defined as “status”, “ego” or “self-respect.” Basically “saving face” is about avoiding made to look stupid or being forced to back down in front of others. In the West it is somewhat important but in China, it is critically important. If you criticize your Chinese employee publicly, you might get his or her resign letter on your desk the next morning. It’s an unforgivable relationship killer to make someone “lose face” in public.

You should never, insult, embarrass, shame, yell at or otherwise demean a person. If you do, they will lose “face”. For example, a Chinese warrior chief, Xiang Yu, after losing a battle, committed suicide because he had lost face. Though this may no longer occur, the concept of “face” remains alive and well in China. Awareness of face and its impact is an extremely important cultural issue.

Some Labor Law which should be Mentioned

When in Rome, do as Romans do. So when a foreign corporation wants to enter the Chinese market, local laws should be remembered. Let’s see the regulations on Labor Law of the People’s Republic of China.

There are thirteen chapters in Labor Law. The first chapter introduces the general provisions such as Article 4 says, “Employers shall establish and improve their rules and regulations according to law and ensure that the workers enjoy their rights and perform their obligations.”

The second and seventh chapter introduces the promotion of employment and the protection to women and underage workers, such as the Article 10 “The State shall create employment conditions and expand employment opportunities by way of promoting economic and social development” and the Article 62 “Women workers giving birth shall enjoy a maternity leave for no less than 90 days”.

The third one introduces Labor Contract and Collective Contract, showing that the contract should be elaborate, fair and legal. For example, the Article 18 introduces the illegal contracts.

The fourth, fifth, sixth ninth chapter introduce working hours, vacation, wage, safety and health care and other basic benefits and welfares. For example, Article 38 shows that an employer shall ensure every worker to have at least one days’ rest for a week; Article 49 shows that the factors influencing the minimum wage standards; and Article 55 tells that workers engaging in special operations shall receive special training to acquire the required qualifications.

Chapter Eight introduces the job training, telling that the employees should be trained before they take up their posts.

The tenth chapter introduces the rules of the labor disputes. For example, Article 78 shows that when settling labor disputes, the principle of legitimacy, fairness and timeliness should be followed in order to safeguard the legitimate rights and interests of the parties to the labor disputes.

The eleventh chapter shows the rules of supervision and examination, telling that any organization or individual have the right to inform and bring charges against any act that violates labor discipline and the laws and regulations.

Chapter Twelve introduces the legal responsibility of both sides. For example, Article 97 “If an invalid contract concluded due to reasons on the part of the employer has caused harm to workers, the employer shall undertake the responsibility for compensation”; Article 102 “If a worker dissolves his labor contract in violation of the conditions prescribed by this law or violates the provisions on keeping secrets agreed upon in the labor contract, thus causing economic losses to the employer, the worker shall be responsible for the compensation”.

And the last chapter shows the supplementary provisions, such as Article 107 “The law shall come into force as of January 1, 1995″.

Recommendations

Be patient

As an old Chinese saying state, “If you go to the stream in the morning, you observe that a rock in the stream has the power to part the waters rushing over it. But if you return to the same stream in 100 years, you see that the water has washed away the rock.” (http://workabroad.monster.com) So remember: Trust and relationship go a long way in China. Success in Chinese markets requires persistence and a long-term view. You’d better not expect immediate, be willing to forgo the short-term profits and develop networks for future business.

Build a network of relationship

In China, guanxi, or connections, is everything. Developing relationships through the various government ministries that promote foreign business and cooperation is an effective and respected means of meeting new people. So it is essential that companies establish strong relationships with distributors as well as midlevel government bureaucrats, who often have great influence over policy decisions. Once trust is established with key players, foreign firms will find that production, distribution, and advertising are easier to achieve.

Establish strategic partnerships

Many U.S. businesses believe if they go to China, they need to get a deal–any deal–quickly. But the wrong deal in China can sink a business, and exclude it from other more lucrative partnerships. Analysts advise companies to consider partnerships carefully and ask these questions: What does the Chinese partner expect? How quickly? What connections does the partner have in government? With other technology providers and distributors? The rule: Don’t try to do too much too fast.

Be flexible

China’s regulatory and legal environments are still immature and basic infrastructure is not readily in place. Companies must learn to manage change and accept the “fluid” business environment. Foreign firms should understand that it is incumbent upon them to maintain and revitalize relationships, even if things don’t turn out as they expect.

Reference

http://www.chinabig.com/

http://www.chinabig.com/

http://www.chinabig.com/

www.china2go.com/

http://www.cultualsavvy.com/c

www.cyborlink.com/besite/

http://chinaunique.com/

http://chinaunique.com/

http://www.greekorthodoxchurch.org/

http://gsbnet.uct.ac.za/

http://www.poolonline.com/

http://workabroad.monster.com