20. Basis Of Cultural Dimension Of China
CORE CULTURAL VALUES
Chinese culture is collectivist oriented. The group, rather than individual, is honored.
It promotes the idea that relationships between people are unequal and that everyone should have
defined hierarchical roles.
EThe word ‘guanxi’ is a general term used to describe relationships that may also result in the
exchange of connections or favours that benefit both people
It represents a person's reputation, influence, dignity and honour
It is a framework is a measure for assessing
the impact of cultural values on the workplace
behavior and gauging how much the cultural
mores and attitudes influence the people at
25. Handshakes are the
standard, casual greeting
The grip tends to be lighter than the Western handshake
and is also sustained for longer.
Do not bring presents!
The official policy in Chinese business etiquette
forbids gifts. The gesture is considered bribery, which
is illegal in the country.
Be careful about what you
do with your hands
putting your hands in your mouth, biting your nails,
removing food from your teeth and similar practices are
Body posture should always be formal and attentive
as it demonstrates self-control and respectfulness.
Carry Business Card
Exchanging business cards is common practice, so
make sure to bring plenty.
Maintain composure during
Causing embarrassment or showing too much emotion
could have a negative effect for a business negotiation.
27. SUITABLE FOR ENTERING CHINESE MARKET
MARKET ENTRY STRATEGIES
industries, Including the
finance industry, require
the setup of a
representative office first
before undertaking other
forms of investment in
Somewhat limited by the
fact that they are not legal
The China FICE can
distribute either imported
or locally manufactured
products for their
wholesale, retail and
They cannot, however,
change the nature of the
WFOEs are the preferred
vehicle for businesses
with an established
product or service that
can be easily imported
and sold in China.
Establishing a WFOE is
becoming a leading
option for investors.
Under the regulations of
the People’s Republic of
China (PRC), any joint
venture partner has the
right to sell their
ownership interest to a
third party, without the
Establishing a joint
venture is time
consuming, and plans
may go off track
1 2 3 4
29. Linkedin entered China as a joint
venture with Sequoia and CBC
is an interesting move because CBC have
had success in the Chinese market with
several online firms
So having a well connected Chinese partner fighting your
corner is always a smart move as long as there is full trust
between the different parties.
Opening an office in China was a
It helped LinkedIn in growing their brand
awareness in the Chinese market.
story of sucess
30. Even before the Joint Venture was
set up, problems started to erupt
ithe marketing director resigned, even
before the JV was founded, gave hints of
the first scandal.
Groupon announced to use an
This included offering employees from
competitor’s huge salaries to come and
work at Groupon.
story of failure
China has a growing market infused with rapid industrial
development and economic growth. As the world’s third
largest trading nation after the United States and Germany,
China will continue to be an important business partner of
the United States.
US business people and organizations must understand the
differences in the economic, political, and cultural
environment of the country as these can be difficult to
manage and may hinder business development. Especially
important is to learn about cultural and political differences
and their impact on business practices and business