Harris

Whenever one makes a statement about an entire country or people, there inevitably are some inaccuracies. All countries and peoples are made up of individuals who exhibit a wide variety of attitudes and behaviors. Please understand it is not my intent to disregard these differences. I love China, its food, music, films, cities and people. Generalizations can be made; however, one should never make assumptions about the people with whom you are doing business. That is what makes life interesting.

The Fundamental Characteristics of Chinese Culture

There are several fundamental characteristics or underpinnings of Chinese culture that color the attitudes and personalities of the Chinese people. These characteristics are so engrained from childhood that many Chinese are unaware of their existence, or at least are unaware of how they make China and the Chinese people different from the West. Among these are:

• A long, uninterrupted history. The Chinese people and their culture have developed on the same ground for many thousands of years, without mass migrations of other peoples into the country or even significant external influences (excepting Buddhism) until relatively recently.
  
• No tradition of democracy. China has never been a democracy for any significant period of time. Its people have lived with a top down (or perhaps trickle down) imposition of authority from a central government for more than 2,200 years. China has been governed by the rule of men, not by the rule of laws.
  
• Strong family ties. In the worst and best of times, the Chinese have always relied upon their families. Parents took care of children and grandchildren, and grandchildren and children then took care of grandparents. The order of the family is held together by a deep and abiding respect for the elders of the family and by a recognition of the important role of the extended family or village in an individual’s life and development.
  
• A language like no other. Chinese is a subtle, tonal language, rife with imprecise meanings that bedevil Germanic language natives. What can a Westerner make of a language that uses no verb tenses, no plurals, and in which there is no direct translation of the words “yes” and “no”? Their unique and wonderful spoken and written language above all else colors the Chinese view of their world.
  
• A whole lot of people. Sure, we all know that China’s population exceeds 1.3 billion, but what does that really mean? It’s a big country, slightly larger than the United States, but the vast majority of its people are crowded into a very small portion of the geography. China has large expanses of mountains (the Himalayas are just the beginning), deserts (Gobi, etc.) and grasslands that are barely inhabited. This crowding has been a fact of life in China for hundreds of years.
  

What do these factors mean?

So, how do these factors affect the way the Chinese do business? In several very important ways that you either know, or need to know:

The long history of China teaches its people to respect antiquity and traditions. So the natural consequence of this is respect for older, more experienced individuals. In business, this manifests itself in a generally hierarchical business organization. Business owners direct department heads who direct supervisors who direct workers. Matrix organizations are almost unknown. Information travels up and down, but frequently not side to side!

The lack of a tradition of democracy leads many Chinese business leaders to be autocratic in their management style. No polling of opinions occurs when decisions are to be made, and questions generally are not asked of bosses. When such leaders make good decisions, success can occur with blinding speed. When they make poor decisions, businesses can crash and burn just as quickly.

The strong bonds of the Chinese family manifest themselves in their professional families as well. Individuals gain their own respect and identity from being members of a larger group. This leads to “group accommodation behavior,” and that means face-saving. Your Chinese colleague may say “yes” when they would rather say “no” because that don’t want to lose face to you or within their work group. Your Chinese colleague may save your face by avoiding saying “no” to you. They will hint at “no” and they will put up barriers to an idea, but they will not give a direct “no” answer. A lot of what Westerners would consider lies are made by Chinese attempting to save face … either theirs, their colleagues, their bosses, or frequently, yours! The lie is considered a more acceptable way of communicating a difficult situation than facing the ugly truth. In English, we call these white lies, because they have a positive purpose, but in Chinese culture, the bounds that constitute a white lie are much broader than in Western culture.

The Chinese language’s ambiguities lead to ambiguities in business communications as well. The tendency to avoid direct yes or no answers is also the result of the lack of such direct words in the Chinese language.

The crowding that Chinese must live with from birth has an interesting byproduct. Individual person-to-person relationships become all the more important. With a million people in even a medium-sized “town,” one must establish close, personal relationships in order to have trust and confidence in those relationships. The Chinese carry this over to relationships with Western business partners, and value personal after-hours interaction very much.

Please also be aware of another important Chinese business characteristic, and that is the attitude towards contracts. A written contract in China frequently is not considered a legally enforceable document so much as an understanding between two parties at a point in time. If the understanding changes, the document is no longer valid. This is why it is so important to work hard to maintain business relationships in China, and not rely on a piece of paper to do that work for you.

I am convinced that one should act with the same high level of integrity when dealing with business associates in China as you would in the West. Treat others with respect and honesty and expect to be treated with respect and with honesty, and settle for nothing less. But be prepared to deal with conflicts, and understand that a different cultural viewpoint can lead to those conflicts.

Carlton Harris is president of Asia Tool Source LLC, or ATS, a U.S.-based sourcing company that helps customers buy plastic injection, rubber and metal stamping tools in Asia. The company also sources rubber parts and can provide full box build and packaging services of consumer products. ATS is headquartered in Drexel Hill, Pennsylvania, and has an office in Shenzhen. Visit ATS’ Web site at www.asiatoolsource.com, or contact Harris at charris@asiatoolsource.com.