Cross-Cultural Business in China

This assignment examines the complexities of conducting business between Western organizations and Chinese companies. It highlights the contrasting cultural norms that can impact interactions and emphasizes the importance of understanding these differences for successful business outcomes. The text discusses strategies for navigating cultural barriers, fostering positive relationships, and achieving mutual goals in a cross-cultural context.

Running head: CULTURAL CHALLENGES OF DOING BUSINESS IN CHINA 1
INTRODUCTION
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 (Bruton & Ahlstrom, 2003). 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 (Lee, Pae & Wong, 2001). 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 arises 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
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

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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?

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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.
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 (Li, Lam & Qian, 2001). 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.
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
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

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practices, standards, and qualities (Busenitz, 2003). 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
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 David, Francis & Walls (2002), emotionalism and 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

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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. Li, Lam & Qian, (2001) stated that
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.
Selmer, (2001) has asserted that negotiation is a considered as an activity that allows to have
better opportunities through interaction with other party to create a mutual understanding. It
allows to develop effective understanding among members so that goals and objectives can be
accomplished effectively. It is because negotiating behaviour allows to overcome issues in
appropriate manner. As per the view of Shin (2007), emotionalism is considered as a tendency to
have reference of emotional state. In addition to this, it can be said that it is necessary for
managers to have effective emotional state so that key values of employees can be understand in
appropriate manner. It will assist in leading business towards impressive level of success.
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
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

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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 (Jameson, 2007). 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
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 (Jameson,
2007). 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. Busenitz & Lau (2003) has stated that 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

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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.
Shin, Ishman & Sanders, (2007) has asserted that 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). As per view of Lee, Pae & Wong (2001), qualities inferred can again
be utilized to get a feeling of the 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. David, Francis & Walls (2002) has contended that
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. According to Jameson (2007), 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 (Busenitz & Lau, 2003). 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. Shin, Ishman & Sanders, (2007)
contended that 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. Lee, Pae & Wong (2001) has asserted that 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.
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

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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. While having operation at international
level the business firm requires to improve the environmental conditions according to employee
needs. Cultural values and personal belief must be concerned effectively so that goals and
objectives can be accomplished effectively. In order to improve the work conditions the policies
and principles of cross culture must be referred in appropriate manner. Along with this,
improvement of sustainable values is essential for long term success.
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