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Chinese Business Culture

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malia hostetter

on 29 September 2016

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Transcript of Chinese Business Culture

How To Do Business in China
Some statistics worth knowing
The 2013 U.S. Census states that the United States:
imported $440,433.5 million in goods from China
exported $122,016.3 million in goods to China
Knowing How To Do Business in China
Virginia Beach, Virginia
Washington D.C.
Nashville, Tennessee
Colorado Springs, Colorado
Austin, Texas
Guangzhou, China
Shanghai, China
Shenzhen, China
Beijing, China
Why is Chinese business culture important?
Why is this important?
A Brief History
Corruption in Communist China
The United States relies heavily on trade and business with China
China is the United States' second-largest trading partner, third-largest export market, and its biggest source of imports
Chinese culture impacts every single part of Chinese business
According to Deloitte, China is ranked #1 in manufacturing, followed by Germany as #2, and the United States as #3
Chinese trading didn't occur until around the end of the 17th century
For the most part, China is considered self sufficient
Opium trade impacted Chinese outlook on overall trade
The 19th century marked the beginning of the Open Door Policy
The Chinese believe that the root problem in the Western business world is that it lacks true hierarchy
Deep rooted in Confucianism is the hierarchy itself, one is always a solid level below or above another person
This Confucian approach can be seen as the cornerstone of all management in China
Senior managers are often the leaders of most major Chinese businesses
In order to try to even get a job or interview with a Chinese company, one must know a relatively high ranking official
Often pay is a relative amount because it depends on where you are in the company or who you know
Even though laws exist to prohibit corruption within the Chinese organizations, it still very much exists under the table, unofficially
CIA World Factbook reports that 45% of Chinese GDP is from the service industries
Knowing how to eat, where to sit, and what utensils to use at a business dinner in China can save you time, face, and respect in the long run
The presentation of business cards can make or break a first impression
Learning the correct greetings or expressions and body language can represent you in a good or bad way
How to Greet Someone
The Do's and Don'ts of Giving and Receiving

1) Chopsticks and You - Annalie
2) Learn Chinese - Tiffany
3) Dinner etiquette - Malia
4) How to greet - Spencer
Now for the fun part!
By Tiffany Eng, Annalie Eubanks, Spencer Hearne, Malia Hostetter, and Matthew Smith
The power of corruption
How to do business in China
The etiquette of Chinese business
Houston, Texas
Hu Jintao (2003-2013)

Wen Jiabao (2003-2013)
Jiang Zemin (1992-2004)

Li Peng (1987-2003)
Wu Bangguo (1998-current)
Number of years within the Chinese political arena
Chinese Business Attire:
dark colored suit
white shirt and tie
black dress shoes
dark colored suit
white shirt
black shoes with no/ low heels
Slight bow
Use appropriate greeting, can be English or Chinese
Mandarin (China)
Cantonese (Hong Kong)
Use correct handshake method and present business card in the right manner
feel free to give small gifts to Chinese business partners
give the gift of shoes, it's bad luck
give the gift of watches or clocks, implies death or someone has died
accept gifts or acts of kindness such as food or drink that is offered to you
take the last of the food or drink unless insisted upon by the highest ranking Chinese business person
(vs) American Business Attire:
pant suit and tie
dress shoes with matching belt
pant/skirt suit and shirt
dress shoes
Works Cited
"Best and Worst U.S. Cities for Business in 2013." Forbes. Forbes Magazine. 2013. Web. 25 Mar. 2014.

"China." Central Intelligence Agency. Central Intelligence Agency, n.d. Web. 25 Mar. 2014.

"China - culture etiquette." eDiplomat. 2014. Web. 28 Feb. 2014.

"China's Foreign Trade." China's Foreign Trade. N.p., Dec. 2011. Web. 25 Mar. 2014.

"China Vitae." China Vitae. Web. 25 Mar. 2014.

Custer, Charles. "Face Culture in China." 2014. Web. 26 Mar. 2014.

Eng, FangFang. Telephone interview. 12 Feb. 2014.

Flannery, Russel. "Guangzhou Tops Forbes China List Of Best Cities For Business." Forbes. Forbes Magazine, 30 Nov. 2013. Web. 25 Mar. 2014.

Hurst, Tony. "China's (Economic) History with Foreign Relations." - WORLD Law Direct. N.p., 4 Jan. 2011. Web. 25 Mar. 2014.

"Political Corruption And The Money Trail In China." Floating Path. Web. 25 Mar. 2014.

Rein, Shaun. "How To Deal With Corruption In China." Forbes. Forbes Magazine, 07 Oct. 2009. Web. 25 Mar. 2014.

Roberts, Dexter. "China's Companies Most at Risk for Corruption, Says Transparency International." Bloomberg Business Week. Bloomberg, 17 Oct. 2013. Web. 25 Mar. 2014.

Stoller, Gary. "Expert Etiquette Tips for Doing Business in China." USA Today. 30 Dec. 2013. Web. 28 Feb. 2014.

"Top 10 Nations Ranked by the 2013 Index." Deloitte. N.p., Jan. 2014. Web. 25 Mar. 2014.

"World History: Political Cartoons on Imperialism." World History: Political Cartoons. N.p., n.d. Web. 25 Mar. 2014.

Zhang, Lijia. "Author: In China, 'everyone Is Guilty of Corruption'" CNN. Cable News Network, 01 Jan. 1970. Web. 25 Mar. 2014.


Keeping Face
Face is a pivotal aspect to have or give if one wishes to do business in China
Face is dignity or prestige
Vital to understand Chinese culture in order to have good face
The Three Main Types of Corruption
1) Graft

2) Rent seeking

3) Prebendalism
Low-cost goods keep prices low
You can gain face or lose face
Because of face, direct criticism is uncommon
Instrumental in shaping Chinese social relationships and moral thought
Full transcript