Why Do We Not Understand How To Do Business In China? PDF Print E-mail
Written by Mike Eckhard   
Friday, 10 July 2009 09:45
Many Westerners consider the way of live of Chinese business people to be difficult to understand. The key to the understanding is based in the Chinese culture.
by MikeEckhard


Many Westerners consider the way of live of Chinese business people to be difficult to understand. The key to the understanding is based in the Chinese culture.

While China is a diverse country, it also has a large degree of unity. While there are 200 dialects, there is a common written language. 90% of the population belongs to a single ethnic group called the Han. Perhaps the most important source of unity is Confucianism, which has endured for more than 2500 years. Confucianism governs every relationship, including business ones.

When the Chinese emigrate from China Mainland and become citizens of other countries in different places in the world this did not change. Most of them still consider themselves to be real Chinese, even after several generations. Many families and individuals of those who left China before the 1949 revolution call themselves traditional Chinese. This is compared to those in China today, because the emigrants did not experience the communist influence on their traditional values.

Westerners consider Chinese culture and organizations vastly different to their own standards, while Western culture seems extremely different to the Chinese people. We need to comprehend these differences, so we better can develop a wider global understanding.


One must know that according to a well-known proverb, when a Chinese individual is honored, his whole family is honored. When he is damned, his whole family is damned. In a matter-of-fact the family had a strong meaning in China's agrarian society, but Confucius added a moral aspect and broadened it to mutually dependent societal relationships. Every person has an important role as a link in the network of society.

The family is the foundation of Chinese organizations, including business ones. In the West, one often refers to "family businesses". For the Chinese, the term "business families" may be more appropriate since the family comes first and the business comes second. Rather than creating wealth, the Chinese tend to see their business duties more as responsibilities to the family.

The family-based business model is strong, especially for Chinese living outside the Mainland. More recently, the decrease in the number of state businesses, has helped the family model of business to reappear which is not always positively influencing the professional, western way, of doing business.

We will continue this topic. Please look for keyword ChinaGateConsult

Remark: Westerners who first begin to do business with the Chinese often are intrigued but perplexed. Inside Chinese Business makes sense of many observed practices and illuminates a light bulb of understanding about many situations. Keep in mind that this is only a basic introduction. For those which seeking a more advanced study of Chinese business culture, or prepare a career or an investment in China, they should seek professional help by a consulting company like ChinaGateConsult with its multicultural background and about 35 years of business experience.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

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