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CI-CD    Centre for Inter-cultural Development

Doing business in China

from cultural orientation to inter-cultural competence

Contents Page and Preface of CI-CD Handbook

Trading, Investing, Project Managing in China: Cultural Sensitivity for Success

CI-CD Briefings are used on training courses for clients of United Kingdom Trade and Investment

Briefing book to accompany Group Training Courses and Individual Executive Mentoring

by John Twitchin, BA Oxon; FCIPD

Director, Centre for Intercultural Development (CI-CD), London.

Founder-tutor of post-graduate ‘MA in Intercultural Communication in Business’ (Business Studies and Applied Socio-Linguistics, University of Bedfordshire).

© the author, 2004

It is unlawful to make copies of any part of this booklet without permission of the copyright holder.

Preface

Nobody develops a skill - whether it’s cycling, swimming, playing football or jazz piano, or indeed, making persuasive marketing presentations and/or negotiating in China - just by reading a book. Individuals develop skills through doing actual practice, under guidance by a competent coach. And teams, however talented or experienced their individual members, succeed against competition only by learning and practising together in team training.

It’s the same for developing the intercultural communication skills needed for international trading, investing, managing. A book can raise awareness, it can set out background information for reference, it can stimulate self-reflection, and it can describe the communication skills required. But it can’t substitute for getting actual practice and testing out such skills, both by individuals and by international marketing or negotiating teams, before applying them in real-life trading situations.

This Briefing Handbook is therefore not a ‘stand-alone’ learning resource. It is the integrated print support for face-to-face training courses that interactively and experientially develop the cultural sensitivity and the practical intercultural communication skills needed in Trade Fair presentations, in marketing, in seeking suppliers, or negotiating JV partnerships, anywhere in China. 

CI-CD courses, and associated coaching and mentoring, provide 

§         analysis of ‘behind the scenes’ documentary evidence from our unique video library of genuine negotiations, marketing presentations, and joint project management meetings in China and other parts of East Asia. (Especially revealing are those showing Chinese and Vietnamese businesspeople studying Western ways of thinking and conducting business, in order to gain tactical advantage in trading negotiations.)

§         documentary videos detailing real case-studies of Western companies in China, together  with those companies’ advice, from experience of making mistakes, about how to ensure successful outcomes

§         inputs from leading experts on international marketing and on advertising in China, plus advice from experienced Western ambassadors to Vietnam and People’s Republic of China

§         native-Chinese teachers to help with pronouncing names in Mandarin, and to build confidence in speaking some introductory phrases, so demonstrating respect for the language 

§         experiential exercises, role-plays and simulated presentations, with individual de-briefings, giving direct practice in the skills of intercultural communication needed in China               

§         customising the necessarily generic information of this booklet to the specific needs, work functions, level of experience, and questions of individual clients; and detailing differences between Regions of the PRC; Hong Kong; Taiwan; Chinese in Singapore and Malaysia.

CI-CD can also supply Briefing Handbooks Cultural Sensitivity and Intercultural Communication Skills for Trading and Investment Success for European countries: France, Germany, Poland and (for American business) The United Kingdom – Gateway to Europe.

Contents

Introduction: How does this book help in trading with China?  

Module 1: The relevance of cultural values in trading abroad       

1: Why is cultural sensitivity so crucial to trading success in China?

2: If the Chinese we meet can speak English, why do we need to learn about Chinese business communication styles?

Module 2:  East/West contrasts in cultural values that influence ways of conducting business                                                     

1: Chinese naming systems – with practical implications for business cards

2: Cultural differences identified by international business research

Individualism/collectivism - Attitudes to risk-taking - Attitudes to hierarchy and status - Attitudes to time - Long-term/short-term thinking

3. Key culturally different features of Chinese trading and relationship building

‘Mianzi’: concern for ‘saving/giving face’ - ‘Guanxi’: network contacts - Asian Business Contracts vs Relationship - Luck, auspicious numbers, colours (vital for advertising) - Dates, Festivals

Module 3: Establishing contacts and negotiating in China         

1. Practical tips for getting off to a good start 

Finding a sponsor - Making appointments - Presenting cards - Making initial small talk - Dress - Meetings etiquette - Food and dining – Gifts

2. Differences of business approach between mainland regions: translations of how the Chinese describe these to each other:  Beijing - Shanghai - Guangdong - Sichuan - Hubei

3:  Observations on Negotiating Style in China: with summary of practical advice

Module 4: Contrasts in Communication Styles                             

1: How cultural values influence UK and Chinese ways of talking and interacting

High/low context - Direct/Indirect - Structuring information - Turn-taking - Silence and Listening - Body Language - Politeness forms - Intonation patterns - ‘Scripts’

2: Why Chinese speak English in the way they do: deconstructing so-called ‘inscrutability’ by understanding how grammatical features of Chinese affect speaking style in English

Module 5: Language Matters                                                          

1. Who’d be English trying to learn to speak Chinese?

    Briefing on spoken and written forms of Chinese language/dialects

2. Who’d be Chinese trying to learn to speak English?

    English idioms and figurative expressions: A. in Sporting terms/usages  B. in Business talk

3. English verbal usages Chinese find difficult when communicating in English 

Module 6: Skills of intercultural communication                           

1: Generic briefing on awareness/sensitivity + skills of communicating across cultures

2: Identifying symptoms of misunderstanding, and becoming one’s own ‘intercultural mediator’ in China

3: Ways of speaking in English that are helpful for Chinese people using English as their second (learned) language: intercultural communication strategies and skills to use in China   

Module 7:  Case-studies of trading and investing in China           

What went wrong? UK firm receives a Chinese delegation, report by Helen Spencer-Oatey

Investing in China? Joint Venture case studies, research findings by Blair Cameron

Introduction: How can this book help trading success?

The entry of the People’s Republic of China to the World Trade Organisation in 2001 was a landmark event. It signalled that China, while protecting certain of its basic socialist principles, is keen to develop its ‘third way’ via integration with the global economy - and that it is prepared to do this within WTO rules. Within 3 years of accession, over 2,300 laws and regulations on foreign trade were abolished or revised to fall in with WTO standards.

Already China’s own vision lies beyond merely supplying cheap labour for manufacturing the rest of the world’s goods: it is tackling its environmental problems, and it aspires to internationally creative and cultural leadership roles for its great cities. The burgeoning ‘middle class’ constitutes a new, huge prosperous consumer market – and not only inside China: in the West, Switzerland alone has alerted its hotel industry to expect up to 800,000 tourists from China over the next 7 years.

China’s hosting World Expo in Shanghai in 2010, will enhance potential bilateral cooperation with UK. 

The main growth areas for 2008-10 for UK exports/investment with China lie in providing expertise for development in education, the law, financial services, medical supplies, pharmacy and healthcare, IT, environmental protection, creative and media. 

It’s against that backdrop that you are seeking to do business with the People’s Republic of China - on the mainland or in Hong Kong - or perhaps in Taiwan, or with Chinese firms in Singapore and Malaysia.

Perhaps you are preparing for your first exploratory marketing visit, taking in a Trade Fair.

Or you are getting ready to receive a visiting Chinese company delegation here in UK.

Perhaps you’ve made virtual contacts with suppliers in China and it’s time to get down to detailed face-to-face negotiations about trading or investment.

This briefing on Cultural Sensitivity to Chinese ways of thinking and talking business will boost chances of success.

If you are making a trip to the People’s Republic, we assume you are expert in marketing and negotiating; you've got information on the market for your product or service there; and of course you know the financial parameters - prices and terms - your company needs to achieve.

Now this Handbook offers the key extra ingredient: awareness and skills for communicating directly with Chinese counterparts (a) to avoid misunderstandings that lead to damaging loss of face, and (b) to positively win their confidence, even if you speak little or none of their language. While designed as part of self-preparation in advance of a trip, you should also take this book with you for back reference while in China. It will help make sense of your marketing and/or negotiating experiences there. It offers clues for tackling those demoralising, and all-too-common, ‘sinking feelings’ of uncertainty in foreign trading – about whether you are communicating well or badly, or how your presentations are going down, or what your counterparts are really thinking. Such intercultural uncertainties are extremely likely from time to time, despite the fact that your Chinese partners/colleagues may be speaking good English - as the long history of Western stereotypes of the Chinese as ‘inscrutable’ attests.

You’ll find this book deconstructs that traditional image, showing ways to avoid the common misunderstandings, and misperceptions of meanings and intentions, it is based upon. It will 1. help you understand what’s happening if things Chinese people do or say leave you confused, bewildered or irritated, and 2. provide a range of communication skills and strategies, both for overcoming such feelings, and being your own ‘cultural mediator’ to achieve your objectives through winning their confidence as ‘someone we can do business with’.

We assume you have already found competent translators for documents, faxes and emails written in Chinese, and a local interpreter for discussions with Chinese counterparts who are not fluent in English. We presume you have considered the benefits of recruiting people into your company who are Chinese-speaking, to build up such expertise in-house. But as experienced international traders know, there’s vastly more to communicating than simply translating between the words of different languages. To communicate well with people overseas, we need to be able to interpret their words and expressions, through familiarity with the different social and cultural context from which what they say gains its full meaning. Without exception, you’ll find businesspeople with experience of seeking business opportunities in China will confirm that it’s essential in the People’s Republic to invest time to understand the local culture, behaviours, and communication styles you will encounter.

Each module of this book ‘opens a different window into the same house’: namely, how Chinese cultural values and languages influence (a) the way business is conducted in the different parts of China, and (b) the way they are likely to talk when using English, as for them a (learned) foreign language. It offers insight into Chinese ways of thinking and talking in business, so you can adapt your own style as necessary to relate to these. To repeat: demonstrating cultural sensitivity to (a) and (b) will significantly help you come across to potential partners as someone they feel rapport with – even if you know little of the language.

A cautionary point:

While there is a national official language, and there are commonalities throughout East Asia in terms of cultural differences from the West in general, there is huge variety of dialects, and of behaviour and communication styles, between the Mainland regions (Beijing; Central China; Guangdong; Shanghai; the North-East), and the Chinese in the ‘Special Administrative Region’ of Hong Kong, the Chinese in Taiwan, the Chinese in Malaysia and Singapore. Some differences are almost as great between them as between each of those and the UK. Unfortunately, many past guides to business in China emanated from Hong Kong alone: their advice can be wholly insufficient for doing business in the Mainland.

Copyright: John Twitchin, 2004

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