China Is Changing Very Fast

Introduction

China is changing very fast as it tries to re-invent itself in the global scope. The society in China has distinct elements, which are characteristic to Chinese culture. For investors who would like to work in China, it is essential to understand these elements in order to find relevance in the business society. For one to function effectively in Chinese society, they need to understand these concepts (Deresky, 2006). In literal terms, these elements are used in daily communication. Traditional Chinese wisdom dictates the use of business etiquettes, which are obtained from proper management. It essential for one to understand that China is a country full of cultural diversity (Deresky, 2006). The fact file of China show a country with 1.3 billion people. Using European Union as an analogy of China, a person living in London may not understand how to market the product to a person living in Prague. Similarly, if a business is based in Shanghai, it becomes difficult to know the needs that satisfy people who live in faraway cities as well as rural areas. This shows that there exist no single rule in doing business in China. Individual places in China have unique cultures. This not only limited to the culture but also unique language and business practices (Deresky, 2006). This requires one to understand these practices in the context of business partners, customers and employees. This paper tries to explain the use of Guanxi as a driving force in Chinese business environment (Deresky, 2006).

China forms one of the most competitive market in the world (Deresky, 2006). With dynamism that has been experienced since the economic reform in 1978, China has opened door for foreign investment. The growth of Chinese economy can be attributed to availability of cheap labour and increased production. The country has invested heavily in development of new technology (Deresky, 2006). Increased competition has led to international agencies opening up businesses in scattered cities of China. This leads to competition with the already established local agencies. A successful business in China needs to recognize the diverse Chinese culture. Executives who lost it as a result of economic downturn need to have a vast knowledge base of the local brands. New comers need to provide a product which is different as well as innovative. This will give the company a competitive edge over other agencies. Chinese are superstitious and value their culture (Deresky, 2006). The Confucian ethics and way of life brings one a high value as well as great improvement. For instance, showing respect is a concept that is evident in Chinese culture. This applies both to individual relationships as well as for foreigners.

Guanxi

Guanxi, in literal terms, means relationship. However, in Chinese business world, it is used to refer to a relationship that exist among different parties that work