China MAP Workshop

Presented by Wenda Jiao

History at a glance
Population Ethnic Groups

China Facts

Territory Major Cities

Languages
Culture and Etiquette Politics Major companies

Qing the last feudalism Dynasty in China, ended in 1912

China Civil War 1945 - 1949, former ruling party KMT was defeated and fleed to Taiwan

Peoples Republic of China Founded in Oct 1949, ruled by Communist Party of China

Maoist Era: 1949 1976, the age of triumphs and chaos, China was struggling to exploring its way to grow

Post Maoist China: 1978 present, Since Dengs reform, China has more than 10% GDP growth over the 30 years

History at a glance

Population
Ethnic Groups

China Facts

Territory Languages

Culture and Etiquette

Politics Major Cities Major companies

China has 1.33 billion of population as of mid-2009

That is, every from China of people on earth comes

However, China has fewer than 400 million people in 2009 than it would have

Since one-child policy

induced in 1979

 Given its large population, China has a strong comparative advantage in labor intensive industry, which is the major engine of its economy development One child policy helps ease tensions in resources consumption and environment pollution But it also creates problems like slow population growth and rapidly aging society, which could stagnates Chinas economy growth in the long term

Which means...
there will not be as many made in China around in the future as there are today

History at a glance
Population

China Facts

Ethnic Groups
Territory

Languages
Culture and Etiquette Politics Major Cities Major companies

Stereotype & Preconception 1

All the Chinese look the same, apparently China is a single ethnic country
True or False?

False!
China is a multi-ethnic country, and people from not only different ethnic groups but different cities actually have very different appearance, physique and stature

China has 56 ethnic groups The largest ethnic group is

The next 10 largest ethnic groups are

History at a glance
Population Ethnic Groups

China Facts

Territory
Languages

Culture and Etiquette

Politics Major Cities Major companies

China is the 3rd largest country in the world China has 9.6 million km of territory and boarders 14 countries

Kyrgyzstan

North Korea

Vietnam

India

Tajikistan

Pakistan

Mongolia
Kazakhstan

Burma
Russia

Bhutan

Nepal
Laos

Afghan

But remember There is only one time zone

History at a glance
Population Ethnic Groups

China Facts

Territory

Languages
Culture and Etiquette
Politics Major Cities Major companies

Stereotype & Preconception 2

Chinese is a language, and it is the only language in China

True or False?

False:
There is no such a language called Chinese

Mandarin is the official language in China Over 90% Chinese speak Mandarin China has over 400 different dialects. Chinese people from different
Chinese Dialects:
Cantonese Shanghainese Sichuanese Hunanese Gansunese Hainanese Yunnanese Hokkien Hubeinese Liaoningese Many more

ethnic group, different province, city, town, and even village have their own special dialect.

Unlike in the U.S., people from New York has no problem understanding people from Texas with strong southern accent

In China, people from different region of China are unable to understand each other without Mandarin

There are about 7,000 identified Chinese characters () in mandarin Combination of characters forms different meaning of idioms Learning 3,000 characters allows you to read 99% of everything you can see in Mandarin

Lets learn some Mandarin

Hello = (Ni Hao) Thank you = (Xie Xie) You are welcome = (Bu Ke Qi)

Congratulations! You just learned 6 mandarin characters, 2994 more to go

History at a glance
Population Ethnic Groups

China Facts

Territory Languages

Culture and Etiquette

Politics Major Cities Major companies

Is it not delightful to have friends coming from afar -- Confucius

Hospitality is a long running tradition in China

People in China are very hospitable toward guests, especially to foreigners Getting to know other people in China should probably be the easiest part of your stay

Compliments are not easily accepted in China

In the U.S., people are accustomed to praise as well as accepting praise from others However, in China, it is not uncommon to see Chinese directly deny compliments from others

Why?
Because humility is considered to be one of the highest virtues in Chinese culture

Losing and Giving Face (

Face is a paramount cultural concept in China. Some examples:
Respect others & Do favor for others = Give face Disrespect & defy others in public & refuse favor request = Lose face

Giving face to others is the first step to cultivate Guanxi Chinese people in general will refrain from disagreeing or arguing with others, especially in public, to avoid losing other peoples face

Embracing the face saving culture, Chinese people are reluctant to say NO

Greeting Etiquette
Follow introducer/translators lead, if there is one A regular handshake A slight nod of the head or bow could be used at your discretion Business cards are exchanged at the beginning of the meeting and are offered and received with both hands

Meeting Etiquette
Unless permitted, it is considered rude to address counterparty directly with name in a business meeting Address counterparties with their title followed by surname. E.g. Director Wang, Manager Hu Refrain from arguing or criticizing others publicly in a meeting, especially when counterparts superordinate also in present, as it is considered not giving face

Dining Etiquette
Host usually sits next to the service door and main guest always sits opposite to the host Finger-tapping on the table is an expression to appreciate others for pouring drinks for you It is not uncommon to see hospitable Chinese people insist paying the bill for you. Instead of resisting, the best way to express your sincere thanks would be to invite them back in the future. In China it is not uncommon to see people excessively proposing for liquor bottom up ( . If you really cant drink, speak it out at the beginning, otherwise you may be considered not giving face Slurp does not necessarily mean bad table manner but approval on cooking

History at a glance Population Ethnic Groups

Territory

China Facts

Languages Culture and Etiquette

Politics
Major Cities

Major companies

Stereotype & Preconception 3

Chinas government is centralized

True or False?

False!
Chinas government is actually decentralized:
Central Government issues high-level development guideline(5-year plan) to all regional governments Regional Government implements the guideline at its own discretion

5-year plan indicates China next five years development focus

12th 5YP(2011-2016)
Industrial and structural reforming Continue emphasizing on development in 2nd and 3rd tier cites

9th 5YP(1996-2000) Concept of Go West and central China development Policy

11th 5YP(2006-2010)
Re-emphasize on ChengduChongqing axes

Position Tianjin as Economic Centre in North China

10th 5YP(2001-2005) Official launch of Go West policy Policy to Revitalize Old Industrial Base

8th 5YP(1991-1995) Consolidate Five SEZ

Open Pudong New District

China Political system structure

Chinese Communist Party National Congress

Party Chief Secretary Chairman Central Military Commission The Central Peoples Government Supreme Peoples Court Supreme Peoples Procurator

NPC National Peoples Congress

CPPCC The national Committee of Chinese Peoples Political Consultative Conference

Party Deputy Ministers, Commissions Bureaus etc

Party Deputy

Provincial /Local Peoples Congress

Provincial /Local Committee of Chinese Peoples Political Consultative Conference

Local Peoples Government

Provincial /Local Peoples Court

Provincial /Local Peoples Procurator Citizen/Other Party

Citizen

Hu Wen Administration China Highest Leadership authority

Highest leadership in Community Party & Military President Hu Jintao Highest leadership in Government Premier Wen Jiabao

Next President Xi Jinping

Next Premier Li Keqiang

History at a glance Population Ethnic Groups

China Facts

Territory Languages

Culture and Etiquette

Politics Overview

Major Cities
Major companies

China Cities Hierarchy *

Shanghai, Beijing, Hong Kong Guangzhou, Shenzhen, Macau

Chongqing, Chengdu, Tianjin Wuhan, Xian, Qingdao, Suzhou Shenyang, Hangzhou, Nanjing, Dalian, Dongguan, Xiamen
Harbin, Zhengzhou, Fuzhou Nanning, Wuxi, Changsha Kunming, Jinan, Ningbo, Nanchang Hefei, Changzhou, Changchun,

IIII

IIIIII

*Categorizing cities by tier is considered arbitrary and therefore is based on authors personal opinion

 Population: 17,430,000

Political, cultural and educational nerve center of China

Major transportation hub of the country

Spent $40b in Beijing for 2008 Olympics

Adding 15,000 new cars per week. 1 million in 2010

What is fun in Beijing?

 Population: 18,884,600 Became the largest cargo port in the world in 2005 Center of finance and trade in mainland China Has 56,347 foreign entities as of March 2010 Attracts 10.09% of foreign investment in China Preparing to allow foreign companies to list shares and sell bonds in the domestic financial markets

What is fun in Shanghai?

 Population : 7, 061, 200 (As of 2010)

Hong Kong became a colony of the British Empire after first opium war in 1842 and was returned to China in 1997 Hong Kong is a special administrative regions under the principle of One Country, Two System

As one of the world's leading international financial centers, Hong Kong has a major capitalist service economy characterized by low taxation and free trade
The currency, Hong Kong Dollar, is the eighth most traded currency in the world

What is fun in Hong Kong?

History at a glance Population Ethnic Groups Territory

China Facts

Languages
Culture and Etiquette Politics Major Cities

Major Companies

 Founded in November, 1998, Tencent, Inc. has grown into China's largest and most used Internet service portal
Tencent (TCEHF) is China's leading provider of instant messaging services, far ahead of Micosoft, and the company's cute penguin mascot, QQ, is one of the most recognized corporate symbols in China

Petro China (PCCYF), China's No. 1 exploration and production player, is growing fast, thanks to surging oil and gas demand from the red-hot Chinese economy. Outside of China, Petro China's image is of a company rushing around the world trying to snap up oil reserves wherever it can. But China's biggest energy company, which controls 75% of the mainland's reserves, has major domestic exploration programs that enable it to keep jacking up production of both oil and gas.

With more than 300 million Chinese using its service, China Mobile (CHL) has a customer base bigger than the entire U.S. population. The world's biggest cellular carrier, state-owned China Mobile is signing up nearly 5 million new customers every month and is making a big push to win users in the Chinese countryside.
In January, the company announced it was buying 89% of Paktel, the fifth-largest cellular operator in Pakistan

is one of the largest private owned electrical appliance retailer in China

As of 2010 there are a total of 826 stores, 572 traditional stores, 13 digital stores and 2 flagship stores throughout mainland China.
Gome is a nationwide powerhouse and is readying for a fight against Best Buy, which is entering the market. To help in the upcoming battle, Gome (GMELF) acquired a rival chain for $675 million.

As of 2010, there are 54 Chinese companies entered World Future 500

Fortune 500 Ranking
8 10 87 112 116 more .

Company name
StateGrid ChinaNationalPetroleum Industrial & Commercial Bank of China HonHaiPrecisionIndustry China Construction Bank

Revenue (Million USD)

184,496 165,496 69,295 59,324 58,361

Some final tips & suggestions

Do research on visiting cities and talk to anyone in your personal network who travelled there - Your Chinese MBA classmates are your best resources Learn a few simple local language It not only shows your respect and interest to the other culture, but is also a good ice breaker with locals Make local friends - delve right into the local community and profit from expert tips Explore Local delicacies There are so many kinds of delicious Chinese cuisines waiting for you to explore, use your new local Chinese friends as your information center Dare yourself to try things you have never done before - be prepared to embark on a journey to the unknown, immerse yourself, and broaden your horizons

The End
References: National Bureau of Statistic Wikipedia Google image My contact: Email www.stats.gov.cn/english/

wenda.jiao@gmail.com

Interested in learning more about how western businessmen doing business in China? Do not miss the following two books.

Questions?