I.

INTRODUCTION
GEOGRAPHY
Total area: 9,596,961 sq. km. Cities: Capital--Beijing. Other major cities--Shanghai, Tianjin, Shenyang, Wuhan, Guangzhou, Chongqing, Harbin, Chengdu Terrain: Plains, deltas, and hills in east; mountains, high plateaus, deserts in west Climate: Tropical in south to sub arctic in north

PEOPLE
Nationality: Chinese Population (July 2010 est.): 1,330,141,295. Population growth rate (2010 est.): 0.494%. Infant mortality rate--16.51 deaths/1,000 live births. Life expectancy--74.51 years (overall); 72.54 years for males, 76.77 years for females. Education: Literacy--93%. Labor force (2009 est.): 812.7 million. Labor force by occupation (2008 est.): Agriculture and forestry--39.5%, industry--27.2%, services--33.2%.

HISTORY
• • • Oldest continuous major world civilization with records dating back about 3,500 years Successive dynasties developed a system of bureaucratic control Further strengthened by the development of a Confucian state ideology and common written language that bridged the gaps among the country’s many local languages and dialects Last dynasty was established in 1644 when the Manchus overthrew the native Ming Dynasty and established the Qing dynasty with Beijing as its capital

TIANANMEN SQUARE is a large city square in the center of Beijing, China, named after the Tiananmen Gate (Gate of Heaven's Pacification) Tiananmen Square is the largest city square in the world. It has great cultural significance as it was the site of several important events in Chinese history. best known in recent memory as the focal point of the Tiananmen Square protests of 1989

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TIANANMEN SQUARE PROTEST OF 1989 1) Students protest for democracy in Beijing, China, in June of 1989. 2) Chinese government sends troops and tanks to Tiananmen Square. 3) Student protesters are brutally massacred. • The protests actually started in April of 1989, as public demonstrations of mourning for former Communist Party Secretary General Hu Yaobang.

the Central People's Government and their provincial and local counterparts COMMUNIST PARTY • • • • • • Dominates the government Also known as Chinese Communist Party is the founding and ruling political party of the People's Republic of China founded on July 1. taught in all schools and is the medium of government. POLITICO-LEGAL INTRODUCTION • • • Single-party socialist republic Constitution of the People's Republic of China State power is exercised through the Communist Party of China. There are about 100 miliion Buddhists in China 20 million muslims 20 million protestants 5. military.LANGUAGE • All varieties of Chinese are tonal. maintaining a unitary government centralizing the state. RELIGION Plays a significant part in the life of many Chinese 31. This means that each syllable can have a number of different meanings depending on the intonation with which it is pronounced. Central Committee includes: • The General Secretary • The Politburo • The Politburo Standing Committee • The Secretariat .3 million Catholics • - • • • • • • II. and media. Mandarin (or Putonghua) the predominant dialect spoken by over 70% of the population. 1921 in Shanghai the only party of the PRC. Cantonese has between 6 and 9 and Taiwanese has 7 tones. For example Mandarin has 4 tones.4% of Chinese citizens ages 16 and over are religious believers Buddhism is widely practiced.

People's Republic established October 1. National People’s Congress . charged with rooting out corruption and malfeasance among party cadres. 1982.highest organ of state power B. 1949. State Council. Independence: Unification under the Qin (Ch'in) Dynasty 221 BC. Legislative-unicameral National People's Congress. • Divided among 3 bodies: . Qing (Ch'ing or Manchu) Dynasty replaced by a republic on February 12.Premier .State Councilors . Branches: Executive--president. GOVERNMENT Type: Communist party-led Constitution: December 4. State Council . Judicial--Supreme People's Court. urban couples to having only one child Answer for overpopulation in China • • • • • • . revised several times. Township B. County C.Communist Party of China . Prefecture or Municipality D. Province Party Chief or Party Secretary – policymaker Governor/Mayor/Magistrate – Head of the Local’s People Government ONE CHILD POLICY one-child limitation applying to a minority of families family planning policy Restricts married. premier. most recent: 2004. President C.Head and Ministers of the State Council LOCAL GOVERNMENT • 4 different levels: A. which is directly under the National Congress and on the same level with the Central Committee. vice president.Central People's Government (State Council) .• • The Central Military Commission The Central Discipline Inspection Commission.controls all three bodies Primary organs of State Power: A.People's Liberation Army (PLA) – created and lead by the Communist Party of China • Power is concentrated in the Paramount Leader .Vice Premiers . 1912.

and the South China Sea. deltas. In the south it is tropical. China's climate is also varied. ENVIRONMENT/ECOLOGY INTRODUCTION • • • • • 3. and equal to one-eighth of all species on earth ANCIENT CHINESE ENVIRONMENT China's landscape as being like a staircase with three steps -First Step: Himalaya Mountains -Second Step: Gobi Desert -Third Step: Yangtze and Yellow Rivers Northeastern China has lots of forests Southernmost part of China. greater than all of North America or Europe. Divided into three regions: – mountains to the west – various deserts and basins in the northeast – low lying valleys and plains in the east CLIMATE Because of its area and variations in topography.300-400 Million people fewer with one-child policy Non-population-related benefits – Impact on health care • better health service for women – Increased savings rate • savings rate has increased – Economic growth • original intent of the one-child policy was economic • III. Korea Bay.• Effects on population growth and fertility rate . which is almost a tropical rainforest or jungle GEOGRAPHY China is located in Eastern Asia with its borders along several countries and the East China Sea.7 Million square miles different terrains including plains. high plateaus and deserts climate varies from Tropical in the south to sub arctic in the north China's biological resources are among the worlds richest. The northern deserts are also arid and the northeast is cold temperate. while the east is temperate and the Tibetan Plateau is cold and arid. there's one more kind of climate.birth rate fell . the Yellow Sea. hills. • • • • • • • . mountains.

with average growth rates of 10% for the past 30 years. 2010) GDP per sector: industry (46. ECONOMY • • • • • • • INTRODUCTION world's second largest economy after the United States. The provinces in the coastal regions of China tend to be more industrialized. largest exporter and second largest importer of goods in the world. As China's economic importance has grown.518 (IMF.• • • • CHINA’S ENVIRONMENT TODAY neglected as the country concentrates on its rise as an economic power cancer the leading cause of death in 30 cities and 78 counties Lead poisoning is one of the most common pediatric health problems in China China is the largest emitter of greenhouse gases ENVIRONMENTAL PROTECTION • • • Pollution Control – Use of bicycles.8%). services (43.5 million (1st. surpassing the United States. 2009) Unemployment: 4. 2010) GDP per capita: $4. China became the world's top manufacturer in 2011.88 trillion (nominal: 2nd. making it a top target for forest preservation efforts IV.6%). 2010) : $7. 93rd in the world) in 2010. The country's per capita GDP (PPP) is $7. agriculture (9.2% (July 2010) INDUSTRY The two most important sectors of the economy have traditionally been agriculture and industry • • • • • • . department stores and shops are prohibited from giving out free plastic bags Protection of forests and control of desertification – the country has some of the largest expanse of forested land in the world.518 (PPP: 93rd. while regions in the hinterland are less developed.283 (nominal: 95th.) Labor force: 819. world's fastest-growing major economy.6%) (2010 est. STATISTICS GDP: $5. so has attention to the structure and health of that economy. usually electric bicycles Plastic Bag Reduction Efforts – all supermarkets.

[ the foreign trade system was monopolized by the state.05 trillion (1st. Oil and Natural Gas. Germany 4.66%. • • • • • • • • . textiles. The abbreviation is CNY. organic chemicals Main import partners: Japan 12. Main export partners: US 20. oil and mineral fuels. Automotive EXPORT • • • • Exports: US$1. tobacco. iron and steel. South Korea 4.27% (2009) IMPORT • • • • Imports: US$1. and many more regulatory and controlling activities. peanuts.04%. plastics. although it also commonly abbreviated as "RMB".54% (2009) Foreign reserves: $3.• • China is the world's largest producer of rice and is among the principal sources of wheat. Taiwan 6. metal ores. When economic reforms were instituted.55%. The country is one of the world's largest producers of a number of industrial and mineral products OTHER INDUSTRIES Energy and mineral resources. including data processing equipment. under socialist political and economic system. GOVERNMENT ROLE the government. the monetary authority of the PRC. denominated as the Yuan Subdivided into 10 jiao or 100 fen. Coal. controlled the level of investment funds.03%.32%. Japan 8. The Renminbi is issued by the People's Bank of China. soybeans. Germany 5. South Korea 9. Hong Kong 12. corn. Latinised symbol is ¥.03%. Industry and Manufacturing. 2011) CURRENCY The Renminbi "people's currency" is the currency of China. Nearly all the domestic enterprises were state-owned and the government had set the prices for key commodities.307 trillion (2010) Import goods: machinery and equipment.06%. and cotton. apparel. Mining. Hydroelectric resources. the government's role in the economy has lessened by a great degree.27%. Hong Kong 10.84%.506 trillion (2010) Export goods: electrical and other machinery. US 7. consumer products including toys and electronics optical and medical equipment. has been responsible for planning and managing national economy.

failure to do one's duty is dishonorable. Manchu. businesses. Tibetans In terms of numbers however. SOCIETY • Ancient Social Class • • • • • • • BEHAVIOR. not only to the individual but to the entire family.• While the role of the government in managing the economy has been reduced and the role of both private enterprise and market forces increased. and individuals reduce corruption and other economic crimes sustain adequate job growth for tens of millions of workers laid off from stateowned enterprises keep afloat the large state-owned enterprises V. and so are ideas of hospitality and social ties. the pre-eminent ethnic group is the Han Chinese. PROBLEMS • • • • • • social strife environmental damage collect public receipts due from provinces. (Zhonghua minzu a supraethnic concept ) Examples: Han. Deference and obedience to one's elders are of the utmost importance. ETIQUETTE AND VALUES Chinese culture has traditionally prized the worth of the group over the worth of any one individual For the Chinese. Several generations might live in close proximity and have contact with one another often . Zhuang. the government maintains a major role in the urban economy. SOCIETY AND CULTURE PEOPLE there are 56 distinct recognized ethnic groups in China.

astronomy. In 2004. medicine. TECHNOLOGY • • • INTRODUCTION The government has placed a stronger emphasis on science and technology as an integral part of the socio-economic development of the country. This has led to increases in investment. calendar. Qi. in the early 21st century. The extensive collection of books that have been preserved since the Zhou Dynasty Concepts covered within the Chinese classic texts present a wide range of subjects including poetry. global change and space science. including in the fields of agriculture. Many Chinese concepts such as Yin and Yang.• • • • MYTHOLOGY AND SPIRITUALITY A large part of Chinese culture is based on the notion that a spiritual world exists. Four Pillars of Destiny in relation to heaven and earth were all theorized in the dynastic periods. • • • • • • . INFORMATION INDUSTRY The information industry has become China's economic mainstay. The Law on Popularization of Science and Technology makes a societal goal to popularize science and technology knowledge among all citizens. While many deities are part of the tradition. The Zhou dynasty oriented it to worshipping the broader concept of heaven. genetics. astrology. aiming at the international sci-tech heights. The national strategy for developing science and technology shifted from following on the heels of others to making independent innovations and technological strides. improved scientific structures. the world's third largest. the added value of China's information industry. • • • • VI. Now. DEVELOPMENT In 1900. the gap in high-technology research and development between China and the world's advanced countries has shrunk. These factors have led to many advancements. some of the most recognized holy figures include Guan Yin. and more funding for research. stood at 950 billion yuan. LITERATURE AND THE ARTS Chinese literature began with record keeping and divination on Oracle Bones. Many of the stories have since evolved into traditional Chinese holidays. Jade Emperor and Buddha. Chinese religion was originally oriented to worshipping the supreme god Shang Di. constellations and many others. China had no modern science and technology at all. 60 percent of technologies have reached or are close to the world advanced level. China's development of science and technology and its system of granting science and technology awards are underpinned by the basic Law on Progress of Science and Technology.

OTHER FIELDS Agriculture and Medicine. sales and profits of electronic and telecoms manufacturing all outstripped those of traditional industries. 430. BUSINESS TRENDS IN CHINA • • • • • GAME-HUNTING TOURISM fourth most important consumer trend in China popular among the wealthiest there are about 200 hunting clubs across China average price for one hunting trip is 1.000 yuan a big chunk of the earnings are used to maintain viability of the environment and wildlife DIAMOND INDUSTRY China is actively involved in controversial diamond mining activities in Africa. 41. many have been turned into tourist attractions. Astronautics.000 China-coded domain names. 670. ranking second in the world. Genetics and Biodiversity. Local governments have begun major campaigns to build or renovate temples and market them nationwide. Of 130. and 94 million Internet users. Space Science.000 religious sites on the Chinese mainland. China had boasted 74. By the end of 2004. CHINESE GOLD World's second-largest consumer market for gold after India World's biggest gold producer • • • • • • • • • • .429 MB export broadband capacity.6 million computers with Internet access.000 websites. The Chinese government is on a mission to push the benefits of diamonds to its rich consumers (who still culturally favour jade) PLASTIC SURGERY FOR STUDENTS 80% percent of Beijing's plastic surgery market in the summer consisted of high school seniors and college students hoping to improve their appearance and land better jobs that proportion is expected to hit 90 percent in coming years Excessive employment pressures and higher beauty standards are the leading reasons for the popularity of the surgery RELIGIOUS TOURISM A growing interest in religion has boosted the country's fledging religion-related tourism market. Social Sciences • VII.• • Output value.

the term “business families” is more appropriate. family-financed. INSIDE CHINESE BUSINESS NATURE OF BUSINESSES The family is the foundation of Chinese organizations.• Demand for it is driven by jewelry sales. dominant family head 3. private investment. industrial and central bank demand VIII. family-accountable corporation WESTERN VS. enduring roles and family obligations 4. In the West. sales are made via the family network Financing sources Transfer of Ownership Public sale of securities Mergers and unfriendly acquisitions Brand is promoted by advertising Advertising . In China. one refers to “family businesses”. Business duties = responsibilities to the family FAMILY BUSINESSES The FAMILY is the foundation of Chinese organizations Business duties are responsibilities to the family 4 features of business families: 1. Family comes first and the business comes second. family-directed 2. TRADITIONAL CHINESE BUSINESS PRACTICES • • • • • • • • Business Practice Main Company Purpose Financial Openness Western Maximize shareholder value Public financial reports Chinese Serve family interest Financial information is kept secret Family and friends of family Companies are not sold due to family obligations Without advertising.

Successful business person = well connected Guanxi is CONNECTIONS with mutual obligation. goodwill and personal affection with emphasis on family and shared experiences. GUANXI Relationships: immediate family.Management Professional management. strangers Results in favors that are expected to be returned Chinese will remember for a long time a favor that was given to them WESTERN VS. CHINESE NETWORKING Western Economic Chinese Economic and Social • • • Networking Attribute Motivation Formality Formal and defined roles Informal and flexible roles Separate Impact one another Individual and organization Networked organizations Governing authority Independence Mutual dependence Contracts Personal trust • • WHEN MEETING THE CHINESE Show sincerity and commitment Remember that guanxi networks are among individuals not companies . extended family and close friends. shared experiences. recruited on qualifications Senior managers are recruited from within the family Long-term family prestige is emphasized Time Horizon Short-term emphasis on bottom line profits and shareholder value • • • NETWORK AND GUANXI Chinese business culture is relationship-based.

• • • • X. department stores. FENG SHUI TIPS Always sit with a solid wall behind your back. nor immediately as you enter the office. it tends to last for a very long time. Low product safety. Do not face a wall neither while working at your desk. Be mindful of the quality of air in your office. agricultural products. or energy. it takes time to develop the relationship. CHINESE BUSINESSES IN THE PHILIPPINES • • • • • TSINOYS Philippine national of Chinese ethnicity but born/raised in the Philippines largest group of immigrant settlers in the Philippines mostly business owners and their life centers in the family business attribute their success in business to frugality and hard work attribute their success in business to frugality and hard work COMMON BUSINESSES lumber and construction supply. hardware. Position the office furniture to encourage a smooth flow of Chi. GUANXI 2. The term feng shui literally translates as "wind-water" in English. CHINA: BEST BUSINESS PRACTICES Americans quickly establish business relationships. Faulty products • • • • FENG SHUI ancient Chinese system of aesthetics believed to use the laws of both Heaven (astronomy) and Earth (geography) to help one improve life by receiving positive qi. Never sit with your back to the window for long periods of time. electrical supplies. improve the oxygen supply with feng shui air-purifying plants. Throughout the Orient. 1. Fake.• • • Give symbolic gifts Maintain guanxi relationship through communication and favors Relationships are the focus of Chinese business IX. restaurants THE DOWNSIDE Low quality products. but there relationships are generally shallow and not particularly long lasting. appliances. FACE .realty. sugar trading . but once it's developed.

Roughly translated as 'good reputation'. BATNA: Negotiating • Best Alternative to No Agreement. 3. You should always be calm. 'respect' or 'honour. collected and controlled. save face and show face when doing business in China. It’s your condition when the counter-party you are negotiating with gives you a final and definite NO. • Chinese negotiators generally consider their BATNA to be fairly strong because they operate under the assumption that there is always another available counterparty. Body posture should always be formal and attentive as this shows you have self-control and are worthy of respect. “I DO”: THE NATURE OF CHINESE CONTRACTS 5. CHINESE BUSINESS FAMILY IN TRANSITION 4. • • . • Body language and movement are both areas you should be conscious of .‘ It is critical that you give face.

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