Cultural Traits and Business Negotiations in China

This presentation explores the cultural traits of China, including power distance, individualism vs. collectivism, and long term orientation. It discusses the impact of these traits on business negotiations and provides insights for businesses looking to expand in the Chinese market.

CHINA
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Power Distance
High power distance index: The
lower level people of the society
accept that power is distributed
unequally.
Low power distance index: The level
of inequality is less and people in
the society are less willing to accept
the unequal power distribution.
Power distance of China: 80
Power distance of New
Zealand: 22
Power distance index affects
the actions of individuals in
business negotiations.

Cultural traits
Language:
Mandarin
Festival : Spring Festival
Traditional outfit:
Cheongsam

Individualism vs. Collectivism
Individualism: It is the idea that life of every individual belongs
to that person and has an inalienable right to live according to
his/her choice.
Collectivism: It is the idea that life of every individual is not
confined to only that person but is a part of a group or society.
Individualism of New
Zealand: 79
Collectivism of China: 20

Long term or short term orientation
Long term orientation: It focuses on the future.
Short term orientation: It focuses on the past or the present .
Long term
orientation of
China : 87
Long term
orientation of New
Zealand: 33

Language in China
Language in China :
Mandarin
Chinese people shake
hands, nod or bow
upon meeting
someone. They even
applause.
Example: “ni hao”
means hello in
Mandarin

Non verbal communication in New
Zealand
Eye contact
Physical contact
Personal space
Head
Obscene
gestures

Values and attitudes
Hierarchical values: A certain hierarchy is maintained
where the people in the highest level of hierarchy gets
most of the benefits.
Egalitarian values: This value prioritizes equality in the
country for all people.
China though has hierarchical values, is highly
egalitarian when it comes to marriage rights, sexual
freedom, women’s career and the importance of having
a son in the family.

Manners and customs
• interpersonal strategies
• practical in business
• dislike dependency on foreigners.
• maintains punctuality
• exchange business cards upon meetings
• observing seniority and rank are essential
aspect

Conclusion
Thus, it can be concluded that China’s cultural traits,
collectivism, attitudes and values, long term
orientation, language can help New Zealand grow
and expand their business in the Chinese market.

References
 Steele, L. G., & Lynch, S. M. (2013). The pursuit of
happiness in China: Individualism, collectivism, and
subjective well-being during China’s economic and social
transformation. Social indicators research, 114(2), 441-
451.
 Weller, R. P. (2018). Alternate civilities: Democracy and
culture in China and Taiwan. Routledge.
 Wepa, D. (Ed.). (2015). Cultural safety in Aotearoa New
Zealand. Cambridge University Press.
Prot, S., Gentile, D. A., Anderson, C. A., Suzuki, K., Swing,
E., Lim, K. M., ... & Liau, A. K. (2014). Long-term relations
among prosocial-media use, empathy, and prosocial
behavior. Psychological science, 25(2), 358-368.

Thank
you.