Monday, July 04, 2005

Getting to grips with Chinese business culture...


Design is central to much human endeavor. Visual communications are central to industrial and business processes in relation to information systems and promotional or marketing activities within cultural, social, political and industrial structures. Although not defined as such, design, is often perceived as an industrial and business process with a distinct, if often misunderstood, place in the cycle of market driven forces. These points are evident in the majority of societies and cultures. Given the widely acknowledged “big picture” emerging, along with the global realization that ‘the rise of China’ is a significant driver of economic development, the opportunities afforded by this phenomena have implications for design and for design education that are worthy of attention. It follows then that study and research into developing strategies that assist in the multi-faceted task of promoting understanding, co-operation and resources for delivering and promoting cross - cultural design practices with China is at least valuable, relative to the above statements. The DFAT [Australian Department of Foreign Affairs and Trade] report [29/10/2003] states:

China - the world's sixth-largest economy, …has more than doubled its exports from $US150 billion ($212 billion) to $US325billion since 1996… China's GDP is predicted to overtake that of Germany by 2010 and to rival Japan's by 2030, with growth in demand for agriculture commodities to grow by an average 15 per cent and minerals and energy imports by 13.5 per cent a year to 2010.

John Kerin and Christine Wallace [Sydney Morning Herald] October 30, 2003

Nevertheless, while this appears on the surface to be a “excellent opportunity for all manner of enterprise there are very significant potentials for difficulty. Not the least of these are culturally based issues:

One has to know the importance of these two aspects, guanxi (relationship or connections) or mianzi(face) while doing business in China. Guanxi is very important in the Chinese society. Chinese will only do business with those who they know or are familiar with. In the absence of good connections, there is virtually no chance of meeting key people with whom to conduct business with. …One must be prepared to present gifts occasionally to build a better relationship…Mianzi also plays a vital role in business in China. Supervisors must know its importance in order to be able to manage the subordinates well. He [sic] should never comment on the wrongdoing of the Chinese openly, especially in a public. A good supervisor is to make suggestions in a diplomatic manner which is quite unlike the western way of management. One must be able to appreciate the staff by giving them mianzi by crediting them openly.

http://web.singnet.com.sg/~roederer/difficul.htm [3/11/03]

This underestimated aspect of working with China is discussed in this account of the experience of other South East Asian business when dealing with the Chinese context….

In an interview with Asia Times Online, David Chua, Deputy Secretary General of the Associated Chinese Chambers of Commerce and Industry of Malaysia and one of the organizers of WCEC, hinted at some of the difficulties overseas businessmen are facing in China: "Business practices in China are somewhat different. Some business norms such as mutual trust and keeping promises we have taken for granted may not be so in China. We did not have adequate knowledge in this area in the past.

Southeast Asia-China: Threats, opportunities
Eddie Leung Asia Times Online Aug 2, 2003

A typically western perspective may be to assume that other Asian business cultures would have significant alignment in values, practice and overall approach to that of China. Leung [Aug 2, 2003] highlights the singular context prevalent in China thus illustrating how easy it is to run into problems understanding the issues at hand and reading any given situation.

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