Roots of Chinese Culture

Four threads of Chinese Culture Agrarianism
‡ 2/3 of Chinese people still lives in villages. ‡ Laboring primarily in Rice/ wheat Cultivation, ‡ Chinese philosopher- Fung Yu Han ‡ Chinese sages historically distinguished between the root(agriculture ) and the branch( commerce) ‡ Social and Economic theories and policies tended to favor the root and slight the branch. ‡ People who dealt with the branch i.e. merchants were looked down upon.

Masculine complement one another . Yin.Morality ‡ Writings of Confucius served as the foundations of the Chinese education for some 2000 years. Ruler and ruled 2. 1. Husband and Wife Hierarchical 3. Parents and Children 4. ‡ Confucius maintained. Yang.feminine Oppose and 2.Society organized under a benevolent moral code would be prosperous & politically stable & hence saved from attack. Older and Younger brother 5. ‡ Confucius defined 5 relations. Friend and Friend Yin Yang Concept of Yin and Yang 1.

In Chinese words are pictures rather than sequence of letters. Their families Their Bank account . It can be said that Chinese trust in only 2 things. Chinese thinking tend towards more holistic processing of information.Chinese Pictographic language ‡ Chinese children learn to memorize thousands of pictorial characters. Chinese People Wariness of Foreigners Long and violent history of attacks from all points of compass.

‡ Favors are almost always remembered and returned ‡ Ignoring reciprocity in China is not just bad manners: it s immoral ‡ If someone is labeled Wang en fuyi (one who forgets favors and fails on righteousness & loyalty) it poisons the well for all future businesses.( Hui. ‡ Chinese. ‡ Good Guanxi based on strict system of reciprocity.The Eight Elements Guanxi.Bao) ‡ Doesn t mean immediate returns like Americans. .emphasize Networking.premium on individual s social capital.Personal Connections ‡ Americans. information and Institutions.

family.S. ‡ In China first crucial step. ‡ A trusted business associate of yours must pass you along to his trusted business associates.finding the personal links to your target organization or executive . ‡ In China. . in the phase of negotiation called as Non Task sounding.hongjian Ren(The Intermediary) ‡ In U.tendency to trust others until or unless we re given reason not to. suspicion and distrust characterize all meetings with the strangers. school or previous business ties. ‡ Those links can be hometown.

E. the Chinese felt insulted by the American s failure to send an executive whose rank at least equaled theirs. Renji Hexie( Interpersonal Harmony) Chinese sayings A man without a smile should not open a shop . negotiations may require a meeting of equals in the hope of stimulating more co-operation. Sweet temper and friendliness produce money. The U. Importance of harmonious relations between business partners.g.Shehui Dengzi(Social Status) ‡ At some point.S company sent a relatively young and low level sales representative to a high level negotiation . Respect and responsibility. .glue that binds hierarchical relationships. ah you are about the same age as my son . The Chinese executive remarked .

Instance 2: A V. The next day V. The next morning he was greeted with a hangover. V. The Chinese CEO proposed a toast: Let s drink to our friendship! We ll have long cooperation! But if you aren t drunk tonight.P went to Deputy Minister(right environment. The local sales team had been working with an intermediary on this case for more than 6 months. Deputy Educatn minister and Vice president from the U.P asked so when can we sign the contract?. there will be no contract tomorrow.S company arrived. Chinese hosted a lavish dinner at the best banquet hall in the city. no business was discussed.Instance 1:On the eve of negotiation between the CEO of a U. . a big smile & a fat contract. Why not take your time & see the city first.P you just arrived in Beijing.Previous night dinner) V.S computer maker went to Beijing hoping to close a deal with the Ministry of education. The deputy minister politely replied Mr.and couldn t remember how he got back to his hotel. Intermediary arranged a dinner.P of U.S firm and one from major Chinese firm. Many toasts to mutual cooperation were made. The executive from the American firm matched him drink for drink. You must be tired.

Nothing is settled until everything is. Request to bring intermediaries. it could mean they are trying to decide something. If Chinese increasingly talking among themselves in their own language. Chinese discuss all issues simultaneously & in an apparently haphazard manner. Chinese people feel it s at that point they can begin thinking about the package as a whole. If their questions begin to focus on specific areas of deal.Zhengti Guannian (Holistic Thinking) ‡ ‡ Chinese thinks in terms of whole while Americans in sequential or break up manner. Americans consider the negotiation finished when they have come to the end of the list . . ‡ How to know whether negotiation is progressing well It s a good sign if higher level Chinese executive attend the discussion.

if the price is not reduced further I ll loose the face. ‡ According to market research firm Euro monitor international. Towards the end of the process. practice known as jiejian. Mainland Chinese save nearly 4 times as much of their household income as Americans do. He told Honeywell Bull representatives. . To him sticking point was not just a matter of thrift. e.Jiejian(Thrift) ‡ China s long history of economic and political instability has taught its people to save their money. Honeywell Bull had won negotiation rights for an order of 100 ATMs from the Bank of China. the Chinese use patience and silence as formidable weapons against American impatience. ‡ In defending pricing positions. the bank buyer asked for deeper price cuts. Mianzi ( face or Social Capital) The Chinese notion of saving face is closely related to American concept of dignity and practice.g.

‡ That s why Chinese children attend school 251 days per year. ‡ Chinese diligence reflected primarily in 2 ways: 1) Chinese will have worked harder in preparing for the negotiations than the Westerners. 2) They will expect longer bargaining sessions. the Chinese see Chiku Nailao as much more important and honorable. Harvard Business Review on doing Business in China . in contrast to the American s 180 day school year.Chiku Nailao (Endurance) ‡ While American place high value on talent as a key to success.

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