Cultural Challenges Faced by Westerners Doing Business in China

This paper explores the cultural challenges faced by Western business people while doing business in China and provides recommendations on how to succeed in spite of the cultural differences. The main challenges include language barrier, cultural misunderstandings, emotionalism and negotiating behavior, time determination, and individualism versus collectivism.

Running head: CULTURAL CHALLENGES OF DOING BUSINESS IN CHINA 1
Cultural Challenges Faced by Westerners Doing Business in China
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For the Western business people, doing business in China has become their primary
preference according to various reasons. Reasons such as China ’s cheap manufacture and
production an industry that offer discounted goods and services for the Western businesses
which makes China the largest exporter in the world currently. China is rapidly developing
which means that the economic growth is always on the rise. The number of Western countries
outsourcing products and services from China is also growing and there is a constant need to
develop a business sense in the value of understanding business in China. Western business
people face various cultural challenges that lead to difficulties in the business outcomes. The
cultural differences between China and the Western world should be well understood so as to
avoid avoidable situations that may discourage business. This paper will explore the various
cultural difficulties that are likely to be encountered by a global company from the Western
economy and recommendations on how the venture would succeed in spite of the cultural
differences.
Language barrier
Cultural misunderstanding mainly arise from lack of proper communication and in China
’s case, language barrier is one of the primary cultural difficulties Western business people face
while doing business in China . It is difficult to meet Chinese business people who are fluent in
both English and Chinese. The language barrier factor leads to inconvenient business meetings
and delicate business negotiations. One can't get away from the conclusion that somehow these
issues of expanding correspondence, expanding assorted qualities, and expanding size of
operations must bother the issues introduced by the language boundary (Lockett, 2005). This
being the situation, these issues ought to be showed in recognizable examples in the way
multinational organizations modify methodology, structure, and frameworks with a specific end

CULTURAL CHALLENGES OF DOING BUSINESS IN CHINA 3
goal to adapt. Lamentably, the worldwide administration look into group has so far done
generally little to recognize and think about this language issue.
Cultural mistaken assumptions emerging from miscommunication are one of the greatest
difficulties which remote organizations confront in China. Despite the fact that there are an
expanding number of Chinese individuals profoundly capable in English, it is phenomenal to
come across somebody who comprehends the English language and has a sufficiently solid
comprehension of both Chinese and Western culture to explore sensitive business transactions.
On various occasions, business leaders of remote organizations make business trips to China,
have a few profitable meetings, and return home with solid business prospects (Busenitz, 2004).
While correspondence between the outside and Chinese organizations goes easily at in the first
place, things begin to separate as business issues get more unpredictable and the Chinese side
experiences issues disclosing to the remote organization business that are novel to China in a
way that is justifiable to a Western group of business people. What began as a promising
prospect for both sides regularly separates because of false impressions brought about by
language barrier.
To keep away from such issues, it is imperative to have a worldwide group set up which
can connect Chinese and Western cultural contrasts. The thought that cultural contrasts can be a
huge hindrance to working together is presently acknowledged. Be that as it may, this ordinary
acknowledgment may have blinded Westerners to a more essential nation trademark with a
similar effect that is language (Jameson, 2007). Doing business in China requires that a Western
company has explored the effect of language on the differing qualities on administration.

CULTURAL CHALLENGES OF DOING BUSINESS IN CHINA 4
Language obstructions are in this way prone to assume a key part in any multilingual
business relationship. Maybe the most affirmed indication of the language boundary at work can
be found in the relationship between a multinational organization and its system of worldwide
backups. Regularly, seeing someone conceived out of acquisitions, the language capability of the
second language clients is at neither extraordinary to the language hindrance. Regularly, the
second language clients will have some capability, however insufficient to be completely casual
and powerful in the correspondence. For the most part, the communication is interpersonal in
nature and more regularly are experiences between languages misunderstanding especially to the
Chinese who lack comprehension of the English language (Busenitz, 2003). Language
misunderstanding adds to the issues of viable communication in business. Regularly, the lines of
correspondence are bended by the nearness of the expatriate work force in the auxiliary
association, who can mediate in the communication procedure to sidestep the formal reporting
chain.
Most importantly, the highlighting of the Chinese lifestyle is important for Westerners
who seek to bond together with organizations in China. The solid cultural accentuation in China
upon the framing and keeping up of integral and honest business connections with a persevering
exhibit of good character and notoriety. It is crucial to identify these cultural issues that could
pose threat to Western investors seeking to engage their business in China as it would save them
from the costs associated with such cultural factors.
Emotionalism and Negotiating Behavior
It is essential to comprehend the rules of how to associate with individuals from an
alternate culture without falling back on assumptions that might be obsolete and cliché. It is

CULTURAL CHALLENGES OF DOING BUSINESS IN CHINA 5
exceptionally vital to be able to consolidate conventional cultural profiles with scientific
structures, which permit experts to take an underlying recognition about a culture, assess
adjusting components, and have the capacity to adjust the profile for potential changes in
practices, standards, and qualities. In the Chinese culture disparity among individuals from
society is viewed as a satisfactory cultural standard. In both an expert setting, and additionally
inside society itself, subordinate and unrivaled connections are common, and there are general
lines of power that direct connections and power adjusted between people. Forceful, desire
driven conduct with the ultimate objective being to change positions, or acquiring cultural status
position is exceptionally disapproved of in China. Being a profoundly collectivist society,
individuals act in understanding of the general utility of the community rather than the sole
utility of a person (Selmer, 2001). As a consequence of this aggregate state of mind, the Chinese
make cozy associations with select groups of friends and give special treatment to those to which
they have cultural ties. Building agreeable associations with people is imperative when the other
individual is acknowledged as being inside their system, while endeavors for amicable
cooperation are of little significance with people from a different background.
Masculinity ranks high among the Chinese who are exceedingly achievement oriented
and objectively determined. Nature of work is significance, and hobbies and leisure are
relinquished in the interest of work commitments, and people are required to be hard workers.
With low vulnerability evasion, the Chinese are open to being very versatile to conditions, and
are entrepreneurial in nature (Shin, 2007). There is an abnormal state of philosophical beliefs
inside the nation, honesty, and best choices are subject to the setting of a circumstance. There are
couple of absolutes inside the Chinese culture, and adjustment of old procedures offer approach

CULTURAL CHALLENGES OF DOING BUSINESS IN CHINA 6
to new ones. They trust that there are sure cultural standards and that conduct ought to hold fast
to them, and they also have a tendency to be more negative and skeptical than hopeful.
In view of emotionalism, the Chinese culture still remains genuinely collectivist and
philosophical minded. Having their attention on people as the focal point of basic leadership
resounds with a down to business state of mind, and they keep on insisting on the collective
factors such as familial ties. They place significance with building associations amongst
individuals, and actually incline toward the power those associations hold, instead of the
connections with a higher power. The Chinese regard amplifying reliability and will therefore
utilize strict decision making procedures to augment the outcome for each circumstance. Because
of their collectivist attitude the Chinese require a relationship to be developed before a business
agreement can be made. The Chinese are very logical, and in this manner quite a bit of their
correspondence is backhanded. With an absence of absolutes, Western business people ought to
consider the setting of what is being said and the conditions encompassing the dialog so as to
achieve agreeable outcomes (David, 2002). The Chinese are not avoidant of vulnerability, in this
way are not prone to feel compelled into one specific contract. On the off chance that
transactions are going inadequately, the Chinese will adjust and locate a more appropriate
accomplice for the specific contract.
Time Determination
A low time determination is showed by the propensity to respect convention, position and
built up business standards. From this viewpoint, cultural change is a wellspring of unease and
even doubt. Conversely, a high or short term time determination alludes to a cultural aura to be
more adaptable. On the off chance that adjustments in the present, which forsake methods for the

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past, are accepted to give unrivaled advantages later on, a long way from conjuring sentiments of
doubt, they are viewed as promising opportunities and objectives (Selmer, 2001). Such
determinations can for example have incredible effect upon issues like an individual’s perception
of business. Western nations appear to be all short term focused, though China is thought to be
long term focused nation. Imperative parts of what perseveres through time, which the Chinese
are so worried with saving, have an adverse effect on business and interpersonal connections.
Business connections take time to develop devotion and trust fabricates gradually and this is
particularly valid in a long term centered culture such as in China.
The independent's demeanor to short term speculation tends to insist on the quest for
short term objectives. The aftermath of this demeanor can be an unwillingness to focus on, or
fear to try and see the significance of the long term connections that are created through
continuous gathering collaborations. Numerous Western business pioneers do not have the
tolerance for making the individual reputations and building the long term interpersonal
connections which their Chinese accomplices hold in such high regard. This sort of time
perception and time visual deficiency undermines the will of Western investors to put resources
into China. Inability to welcome the focal significance that the Chinese place after setting aside
the opportunity to show reputations and construct connections is apparently the most risky
cultural trap into which trying organizations from the West sink into when trying to develop
Chinese associations.
This range catches the distinction in a culture's way of esteeming the past as they push
ahead to the future. Persistence will go far for Western companies working together in China as
it helps avoid losing one's understanding that could lead to the Chinese partners to lose business
interest. In addition, the Chinese are hesitant to work with individuals they don't feel related

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with. They for the most part want to start a meet up particularly if they are meeting somebody
interesting with some wonderful casual discussion (Jameson, 2007). It might take more than one
meeting before they conduct definite transactions. It just takes a while for senior officials to
achieve a choice and the leader may not be available at beginning meetings. It has been broadly
acknowledged that cultural contrasts significantly influence business conducts and business
associations in which individuals communicate on the premise of shared qualities. Business
administration is implanted in a more extensive cultural setting and is vigorously impacted by
nearby chronicled and cultural standards. The huge contrasts amongst Western countries and
China appear to influence a few parts of their practices in business administration.
Individualism versus Collectivism
Individualism versus collectivism is on the thought that people are normally following up
in the interest of their family, systems, and coalitions based upon individual preference and
willful choices. Unless some obligation is owed, the Chinese people are allowed to exit
relationship voluntarily without notifying their accomplices. At the collectivist end of the range,
bigger cultural bonds are seen. People, and their families, are considered part of a bigger entire to
which they owe constancy in reality frequently unquestioning faithfulness. Family is likewise
critical at the collectivist end of the range. In any case, while for individualism the family
faithfulness is principally to more close family, in a collectivist culture a much more extensive,
more distant family requests that unwaveringness. To a specific degree, in collectivist societies,
the very idea of family, certainly or unequivocally, can be reached out to the more extensive
society. A decent clue in the matter of whether any individual is from a more nonconformist or
collectivist culture is the primary individual pronoun with which they have a tendency to
distinguish (Selmer, 2001). The qualities inferred can again be utilized to get a feeling of the

CULTURAL CHALLENGES OF DOING BUSINESS IN CHINA 9
inclination amongst China and the West as to this qualification amongst individualism and
community. Here, however, it is individualism that is the high score. Western nations, by and
large, are pretty dependably much higher than China on this scale. For instance, the propensity to
individualism in the United States is 80, Canada 70, United Kingdom 79, Germany 77, and
France 51. Interestingly, China comes in, over at the collectivist end of the range, with a score of
25.
The pertinence of these scores can be fleshed out a bit with reference to the work of, who
contends that the essential refinement amongst cooperation and individualism is established in
some further measurements. We may call these the sub-measurements of individualism versus
community measurement. Two of them ought to be underlined for our motivations. These two
sub-measurements are, to start with, the self is characterized as free in individualism while it is
viewed as reliant in cooperation. Second, individualism does not think as far as adjusting
individual and common objectives, while this is a key component of cooperation (Osland, 1990).
These two qualifications could go far in clarifying checked contrasts in the motivational
frameworks favored by Western and Chinese organizations. In the previous, the accentuation is
upon pay for execution, while pay value is the determination in Chinese organizations.
Nonetheless, without a doubt different contemplations, including those identified with power
remove, gentility versus manliness and time determination, all, additionally, become an integral
factor inside Chinese motivational frameworks. At the point when setting pay rates, Chinese
chiefs will be mindful to a worker's work experience and scholarly capabilities. With regards to
thought of advancement, however, essential thought are given to the worker's political quality,
history, and interpersonal connections.

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Despite alternate impacts said above, the greater part of this circumstance streams from
varying mentalities on individualism and cooperation. Administrators and business pioneers in
the West have a solid slant toward individualism. This slopes them to depend all alone
suppositions and judgments as the wellspring of deciding the best move to make in any
circumstance (Bruton, 2003). They tend to work alone, bringing about reduced accentuation
upon the temperance of participation. Correctly on account of these states of mind toward
individual exertion and expression, Westerners trust people win their reward. Conversely, the
Chinese, with their significantly more cooperation score obviously end up depending a great deal
more on meetings and organizations to decide the best course of their activities. Also, thusly,
they put a far higher esteem upon gathering devotion. Unmistakably, then, the Chinese trust that
their feeling of gathering having a place and commitment are a great deal more vital. By more
vital is not just implied more than such gathering character is to the Westerners, additionally, for
the Chinese, alliance is more vital than their own individual achievement. They trust that the
individual's prosperity is for the most part in view of the work of the gathering. This is the reason
one can't assert the reward only for oneself and pay is most suitably assigned on a guideline of
value.

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Conclusion
China has turned into an engaging business sector for outside financial companies with
the globalization of world business. The issue of multifaceted cultural administration emerges as
the collaboration amongst China and it’s culturally opposite Western accomplices keeps on
expanding at an uncommon rate. This paper shows a comprehension on the general cultural
contrasts amongst the Western investors and China by applying the cultural measurements. It
additionally talks about the effect of these cultural contrasts on their administration rehearse
from various perceptions such as helpful techniques, basic leadership, work-related qualities, and
inspiration frameworks. Moves in the Chinese political environment alongside the extension of
worldwide business which is driven by new innovation and technological change has opened the
entryway for an immense scope of chances for Western organizations to build up prosperous
business associations with organizations in China. In any case, these business opportunities have
their cultural difficulties. The primary difficulty is the dissimilar cultural conventions which
every side within which organizations from China and Western countries are established.
Westerners who need to prevail in their business with Chinese firms would be all encouraged to
comprehend those distinctions and gain from that comprehension.

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