Chinese Culture in the Context of Globalization

2011

[CHINESE CULTURE IN THE CONTEXT OF GLOBALIZATION]

Contents

Introduction 2

What is culture 3

What is globalization? 3

High context and Low context 3

Masculinity 4

Individualism 4

Power distance 5

Time orientation 5

How are business meetings held in China? 6

The impact of globalization on the business culture 7

Sources: 8

Introduction

China is becoming more attractive to western countries by the year. More countries are trying to establish their own share in Chinese market. With the fast growing economy of China, the world’s market place is being pulled towards Asia. But before a western company can enter the Chinese market there are a lot of aspects that need to be taken into account. Some of these differences can be found in governmental regulations, habits, and the way people live their daily lives. Many western companies have failed to adapt to the local conditions, and suffered losses by entering the market.

In western countries people go into business for mainly one reason, to generate more profit. A personal relationship with the other party is not necessarily required to do business together. And when personal relationships have been made they will easily be replaced by written agreements. The western culture is very focused on getting contracts signed in order to go operational. Conflicts about the contract will rather be settled by court than by a trustworthy person.

The Chinese would prefer to go into business with someone that they know personally or they trust by heart. For a Chinese to build a relationship with someone means investing a lot of time to get to know the other person. These relationships are therefore hard to form but when they are established they are long lasting. Guanxi, is a well-known word amongst the Chinese. The word literally means ‘’relationships’’. For Chinese business-man the word is interpreted as the network of relationship amongst various parties that cooperate together and support one other. Friendship plays a vital role in the Chinese culture and a conflict that involves contracts will rather be dealt with by someone who they can trust than thru court.

To give a better view on the insights of the Chinese and Western culture,