Understanding diversity in global business
The road to reconciling culture differences is not an easy one. When I taught English I often liked to write up sayings and idioms in English or Chinese. We would then debate about the truthfulness and applicability in modern society.
One of my favorite sayings is “When in Rome do as the Romans” or in Mandarin “Ru Xiang Sui Su (”enter the village and follow the customs”). I often challenged my student’s idea of the actual meaning. Their perception of the meaning would be: “This means I will follow Chinese traditions no matter which culture I am in. Everybody else is a foreigner so they should follow our traditions when they come here.”
I would explain as follows: “foreigners are expected to following Chinese customs in China but Chinese rarely follow foreign customs abroad (unless of course they are second/third generation). There are China Towns in every country over the world but where are the America Towns? (It is usually the street with the most bars in all actuality). The Chinese are a collective society which focuses on maintaining traditions. American’s are a multi-ethnic and diverse country where we experiment with different cultural traditions. We celebrate Hanukah along with Thanksgiving and Chinese New Year. Our sense of cultural identity comes from a blend of different traditions. The Chinese sense of cultural identity comes from maintaining traditions. Why am I expected to worshipfully adore traditional Chinese cultural symbols (martial arts, panda bears, fireworks, Beijing opera, and Chinese inventions, food, historical sites, dances, art and language) when Chinese reject foreign symbols as inferior and pointless?” (This would always heat things up and would hopefully get a rip roaring debate going– a good way to make introverted shy students talk!)
The average response would be as follows: “Chinese invented kung fu (the universally applicable word “martial arts” is not used). You foreigners only copied us. We invented art, medicine, and ancient technology and we are the oldest and most superior culture in the world. We invented the meaning of culture. Your cultures are all only cheap imitations. ”
Then I would follow up with “if China has the most superior culture in the world then where is it to be found? Why is the world Americanized and not Sino-ized? Chinese people laugh at their own martial arts, Chinese religion is considered satanic superstition, and nobody cares about art or knows anything about Chinese history. You don’t even know that the rest of the world thinks you still practice ancestral worship and burn incense at grave sites while you yourself have never even experienced it except for on TV. Everybody has become westernized and is only concerned with consumerism and materialism. You are basically American. How can foreigners be expected to revere something which Chinese themselves ignore?”
This artificial and provocative debate pretty much sums up past dialogues (though somewhat exaggerated) which were exchanged between students and myself. When you want to understand culture you first need to understand how individuals within the different cultures themselves view their own culture. Reading the textbook reveals much about how westerns view culture: the textbook is based on the experiences of a European businessman. It is empirically based with a lot of statistics and graphs breaking down different ethnicities and cultures and how they compare to each other. While it claims to non-judgmentally discuss culture it is still highly biased in its approach and methodology. (Not to mention the fact that it always lists Hong Kong and Taiwan and separate territories – that is like listing Alaska and Hawaii as separate territories. It is therefore politically biased.)
When studying culture through Chinese literature and textbooks it was refreshing to find little statistically data which constantly focuses on the breakdown of different ethnic groups and gender and how they compare. Due to Westerners obsession with ethnic identity, gender issues, etc you can’t study culture without reading about what percentage of surveyed Hispanics listen to music and how many times per week does a female South African brush her teeth. Empirically and scientifically based statistical data has its use and merit but is always over utilized by westerners. We understand culture through the eyes of the Enlightenment and Renaissance. Without science to literally prove to us we shun the information as unreliable and unprofessional.
Asians take a more holistic and theoretical approach. I find it very refreshing and enlightening. The information tends to be more practical and simple. Besides Asia there is much to learn from all cultures. The only way to truly comprehend culture is to study it from different cultural perspectives and authorities. This is the same for the business world: the key to successfully integrating different parts of a multinational company is to not only respect but to integrate the positive cultural aspects which each culture has to offer into the business as a whole.
Who determines your cultural values? I think that cultural values of ever individual (myself included) are initially pre-determined through childhood. Family plays a big role in influencing major values/ideas in regards to morality, society, religion, politics, and life in general. My parents were religious and conservative. As I child I was taught that the religious values and beliefs were superior to anything else and it was forbidden to challenge them. This limited my ability to understand and interact with different cultural values and groups. Over the years I have been able to slowly shed the religiously arrogant attitude which I was brought up in. Now as an adult my cultural values have been heavily influenced by Asian society, values and religion. After living in Asia for 7 years many of my values and beliefs have been integrated with alternative viewpoints. I am very satisfied with my adjustment of cultural values. Overall, I think it is the social and physical environment, which determines cultural values. Then again, it is the individual also who interacts with these different environments and accepts the surrounding cultural values.
For example, every culture has it’s own way in which the elderly are valued. In Asia the various cultures value the elderly more. Following the tradition of Confucianism the elderly are respected more than as would be in a Western society. Children and eventually adult children take an active role in taking care of parents and the elderly. The opinions of the elderly are highly valued.
This is very important when it comes to business negotiations because the opinion of the eldest member of the team is often valued the most. On a side note, people in China often say “America is heaven for children, hell for the elderly. China is hell for the children, heaven for the elderly.” Clearly, the cultural values towards the elderly in America and China are quite opposite. The traditions of China have clearly made an obvious cultural difference.
In China the negotiation process never stops and is very complicated. In America the negotiation process is a quick and friendly introduction and then intensive bargaining process. When it’s over it is finished and everything is usually final.
Negotiation is never finished in China. Contracts can take years to hammer out all the details. The negotiation process is a time for mutual understanding as the relationship develops. Foreigners are often impatient and can’t understand the chaotic and confusing Chinese negotiation styles. They often leave or quit in frustration and blame the Chinese for failing to ‘play by the rules’.
Final Note
In the end it is important to know that socio-cultural differences are not detrimental but necessary for a diverse and healthy world. By understanding and respecting these differences there is harmony and peace.
FOARP says
There are a whole load of things which stuck in my craw in the first page of this alone:
1) Democracy was not ‘excavated’ during the 19th Century
2) Americans, surely, do not only link their democracy to that of the Greeks
3) The Average Chinese person knows more about America than “black and white movies, a few classical English novels and cheesy 60’s songs”, especially given than many of the B/W movies, novels and 60’s songs that are though western classics in China are not American.
4) I don’t know what industry you work in, but I personally never found cultural problems that huge in business – outside of it was a different thing.
5) Sun Zi was talking about war – will people stop quoting him as a way of explaining how Chinese people do business?
6) Too often you see people talking about the ‘thousands of years between America and China’, as far as I am aware China has been republic only since 1911, the current republic was founded in 1949, and the current system only started developing in 1978 – none of this speaks of gradualism.
7) A bar manager is not a great source for how people conduct business – this may surprise you, but I have been to plenty of totally boring meetings which happened during the working day and in which karaoke was not involved.
8) What is so important about writing yet again about cultural differences between the US and China and their impact on business? Do Americans think it necessary to do so when dealing with people from Africa, India, Russia or (according to at least one survey of US expats, the least favourite and most culturally difficult place to deal with) the UK?
Look, I’m not trying to insult you here, but I just don’t understand why you didn’t look around a bit at what’s already out there before writing this.
Buxi says
I think this topic is too detailed and in depth to be appropriate for a blog entry, in all honesty. I compliment FOARP for getting through the first page and giving it a pretty good try. 🙂 This really deserves to be a book… well, a cottage industry of books, really.
Netizen says
Are we publishing theses here? If that’s the case, let’s see the bio.
I didn’t read whole thing, but it seems to me that this is really one generalization to another. Assertions are never backed up by facts.
bianxiangbianqiao says
Scholarly papers are music to my ears.
“Chinese people are very proud of their culture. This is shown in their communication, attitudes and behavior. If one lives in China there will be a familiar mantra heard. This nationalistic propaganda mantra is pounded into their heads by the Communist government. In essence” China is the oldest, most distinguished, most amazingly complex and superior culture in the history of the world.” History, art, science, literature, politics, society all comes from China. This is almost a monotheistic approach to culture: there is only one true culture and it is Chinese.”
This is a typical Western stereotype of the Chinese culture. It is not false, but incomplete and one-side. The Chinese cherish their culture but not without self-criticism. One reason that non-Chinese are unaware of Chinese self-criticism and analyses is that this discourse takes place only within the Chinese society, in the Chinese language and directed to Chinese only. One only needs to read Lu Xun to realize this. His papers are filled with statements like “I never hesitate to interpret the Chinese actions in the worst possible light….” (non-authoritative translation).
Personally I have said tons of China-bashing stuff myself, but only inside China, in Chinese and to other Chinese. I have never made negative statements of any substance outside China (nothing more substantial than self-deprecating and showing off modesty). There is a stigma on those Chinese who bad mouthing China outside China to non-Chinese. In fact the most effective procedure for the Chinese authorities to neuter a political dissident is to make him an exile, place him in a Western country, even better, make him appear in one of those US Congress anti-China hearings. This procedure is surgical and Wang Dan, Wei Jingsheng can testify how effective it is in removing their credibility among the Chinese and ruining their political ambitions.
Yes. The Chinese do engage in tearful self-reflections and self loathing, but only behind closed doors.
Daniel says
Sort of like between siblings it’s ok to talk critically regarding your own mother or household but for non-relatives it’s pass the comfort zone…I presume?
Although I’m pretty sure running a country is more complex than a family.
bianxiangbianqiao says
Daniel,
Yes. The Chinese society, including the government, is modeled after the family. It is a patriarch structure. Therefore we make no distinction between those who bash the Chinese government and those who bash the Chinese people.
opersai says
Sorry Oldson, I had not had the bravery to finish your entire essay yet. I’ll find time for it later (maybe on the bus tomorrow?)
Now, @Daniel, bxbq
I had heard a speech about the root of the family concept of Chinese society -extending to government – from Confucius. The philosophy that started this metaphor was in hope that when, people extend the feeling, care to even strangers like to a family member, the society will be a better place. When everyone could care about everyone else, like they do to their family members. The Chinese government from long ago addresses the people under it’s rule as 子民-zimin, (zi-son, min-people). The officials were often addressed as 父母官-fumuguan (fumu-parent, guan-governor, official). The ideal was that if the government officials and emperor could care the people under it’s rule as family members, then they will treat the people well and take care of them. Of course, more often than not, it’s sadly no where near true.
The family metaphoric is not used uniquely by the government. Among the ordinary lives of lay Chinese person, this metaphor is used constantly. In Chinese, when you address a stranger who is your peer, you call them sisters, brother (大哥，大姐) depending on their gender and relative age to yours. When you address strangers who’s of your parent’s generation, you address them as uncles, aunts (叔叔，伯伯，阿姨，婶婶), and so on. You will address someone as with your own family even though you could have absolute no blood connection with him/her.
pug_ster says
Wow this is very detailed and mostly correct. I might want to add certain things…
I am sorry to hear that you didn’t get paid for your job. It used to be pretty common because these Chinese bosses figure you are ‘disposible’ and can take advantage of you. This results in walkouts, protests, and among other things that ultimately look bad for the boss. I think this has changed because of the ‘shortage’ of the cheaply paid migrant workers because it is no longer the case where you are easily replaced by the next unemployed migrant worker. Also, if you work in many of the white-collared jobs in China and many of the western companies’ factories, you shouldn’t have a problem getting paid.
Many Chinese know that food is an cheap and easy way to boost morale. Many times the co-workers are forced to work overtime and workers grumble. The boss would buy food, and eat with the workers, have a little chit-chat like one of the guys, and would make the time more bearable. And like what you said, most of the deals are made at a banquet.
The Chinese are learning from the West. My wife worked for an export company based on Shanghai (my wife is the middlewoman in the US.) When my wife’s company deals with the Western Companies, they do deal with deadlines, contract rules, etc… and not by the ‘made up rules’ by the Chinese.
FOARP says
@Guys – I have never held back my criticism of the UK government when I thought it was deserved. I often here this talk about China being a ‘family’ which must not be criticised to outsiders, but it seems pretty nonsensical – a ‘family’ that makes up a fifth of the human race and which has spent a large part of its history at war with itself is surely as much its neighbour business as it is anyone’s. Nor is Chinese commentary inaccessible to the outside world, what is written in Sichuan newspapers may be read as easily in Bonn as it is in Beijing.
Daniel says
I don’t think the people here really mean no criticism is allowed from the outside. It’s going to happen one way or another. Probably more in cultural terms or how some people really think. A lot of people criticize the US from the outside and rightfully so, but it doesn’t mean that Americans like it. One notion I hear in the US regarding this is “do they live here” or “I have my own life to live than to listen to that” or even “um…it doesn’t work that way” and countless other reactions. It doesn’t mean that they are right, it’s just how they feel. Not every American is that way, but I’m pretty certain people can push the limits to how much a person can handle regarding their community. Maybe it might not be express publically, but privately they may feel that way.
oldson says
@ FOARP
You had some great comments. Thanks for taking the time to read my epic length commentary on Chinese culture.
1) “Democracy was not ‘excavated’ during the 19th Century”
I might be wrong but I thought that ancient Greek civilization was relatively unknown until archeology exploded onto the 19th century scene. Before the fall of Communism in Greece did we not know little about it? Democracy has always been around but it seems to me that countries often associate themselves with positive successful things from the past. The Chinese always claim a strong bond to their ancient culture but anyone that has been to China can see that while the government violently and destructively broke that bond during the Cultural Revolution, they have focused a lot of current energy on rebuilding that now. It’s like America still views itself as the hard working savior of the world during WWII and I get the feeling that we are supposed to be doing that now but surely we are doing the opposite with our current detrimental foreign policies. My idea here is that many countries/governments often try to legitimize themselves by connecting to positive past histories.
2) “Americans, surely, do not only link their democracy to that of the Greeks”
Historically, wasn’t Grecian democracy (demagoguery perhaps) heavily influential on Medieval European civilizations which paved the way for 18th century British parliamentary democracy and the French revolution, both of which were used by Jefferson, Hamilton, etc when forming the ideas for our American democracy?
3) “The Average Chinese person knows more about America than “black and white movies, a few classical English novels and cheesy 60’s songs”, especially given than many of the B/W movies, novels and 60’s songs that are though western classics in China are not American.”
Here is an average stereotype of a Chinese university student. How I hate “Yesterday Once More” and “Gone with the Wind” and “Pride and Prejudice” because it was the only things which students were interested in. Having said that, most of what I learned about America and China was taught to me by elderly Chinese while I was studying kung fu, Chinese medicine, etc. I would say that the average person only knows a few stereotypes while the educated non average Chinese is highly knowledgeable and perhaps even more familiar with the reality of America than Americans themselves.
4) “I don’t know what industry you work in, but I personally never found cultural problems that huge in business – outside of it was a different thing.”
I have worked in the education, general business and import/export. Cultural problems can be huge but in China they are always indirect and you never openly talk about them. I think from your perspective you seem to be more experienced and higher up on the business food chain, so you probably experienced a higher level of Chinese cultural business interaction (official meetings, communications, etc). I was the one who was sitting in the back, translating and watching all of the inter office cut throat competition and having the reality of what was going on explained to me by my Chinese counterparts. Everything can look so happy and nice but as the 36 Strategies say ‘xiao li cang dao’ (knife is hidden in the mouth).
5) “Sun Zi was talking about war – will people stop quoting him as a way of explaining how Chinese people do business?”
Chinese themselves use Sun Zi, Sun Bun, Zhu Ge Liang, 3 Kingdoms and the 36 Stratagies for business. It isn’t just a children Western obsession. As Clausewitz so famously said “war is an an extension of politics”. One reason why the Chinese are the masters of negations and business is because they have a strict/focused attitude for this. American tend to take it easy, sign a legally concise contract and then play golf to consummate the relationship. My current employer, like many of the companies I work with, struggle to understand the complexity of Chinese business strategies but they never get it. The Chinese are always playing hard ball and the American counter parts are always whining that they broke the contract.
6) “Too often you see people talking about the ‘thousands of years between America and China’, as far as I am aware China has been republic only since 1911, the current republic was founded in 1949, and the current system only started developing in 1978 – none of this speaks of gradualism.”
You have a point here – same say that technically Chinese history started in1949 with Mao, was destroyed during the 60’s and then reborn after ’78 so actually Chinese history is very short
7) “A bar manager is not a great source for how people conduct business – this may surprise you, but I have been to plenty of totally boring meetings which happened during the working day and in which karaoke was not involved.”
A bar manager is only an example. I could use my Chinese friends who are salesmen and spend all of their time in Europe and the Middle East or family who hold high government positions but it all comes down to the same thing: the majority of Chinese official business will take place during lots of boring meetings. Everything is nice and quite and routine. However, because China is a guanxi-ocracy, the real relationships and business deals are done outside of work, over a dinner table with a glass of bai jiu or at a bar or karaoke, or a tea house. If you want to success in business in China you have to smile and play the official game during the day time hours but then head out at night and make friends and the real business deals during the night.
FOARP says
1) See the Renaissance
2) See above, plus the legacy of the original republic and senate of Rome, as well as the common law tradition, the growth of parliaments (which pre-dated the renaissance), the Magna Carta etc.
3) “Pride and Prejudice” is a British novel. Much of what the average Chinese university English student has to read in the way of western literature is 19th and early 20th century stuff, but I know plenty of Chinese who have read beat poetry, listen to Jazz, enjoy modern art etc. Sure, these were city-dwelling intellectuals, so I’ll say that the majority of Chinese urbanites probably know as much about the US as you can learn from a watching a poorly subtitled season of Friends on pirate DVD, whilst the folk in the countryside may know very little indeed, but they don’t have to. RE: The Carpenters, I second that emotion.
4&5) You may find western offices to be pretty cut-throat too, and most of my ex-colleagues were much more likely to have read a book on Six Sigma by Jack Welch, or “Business the Jewish way”, than the “Art of War”. If I told you that to understand how to do business in the west you would have to read Tacitus, Julius Caesar’s Gallic campaigns and “Vom Krieg” by Von Clausevitz you’d laugh, wouldn’t you? Myself, I learned how to do business from the ancient mysteries of the Wu Tang.
6) I don’t know – but it’s something you can argue. Let’s just put it like this: When you go to buy Jiaozi in the middle of the night and you find yourself eye-to-eye with your local jiaozi man – do you feel the weight of 5,000 years of culture pressing down on you, or do you just feel hungry for jiaozi? Henry Ford said something about this I believe.
7) I think this comes down partly to the general prohibition against boring your colleagues by ‘talking shop’ during social occasions that is found in most western countries, but China is hardly the only place where alcoholic events also serve as opportunities for networking. Over the last year or so I have had the good fortune to be involved in a good number of conferences on IP, and believe me, much booze was consumed and many new professional relations formed – but thankfully karaoke was not involved.
oldson says
FOARP
Actually “If I told you that to understand how to do business in the west you would have to read Tacitus, Julius Caesar’s Gallic campaigns and “Vom Krieg” by Von Clausevitz you’d laugh, wouldn’t you?” I would not laugh. I think that one way to gain a deep understanding of foreign culture/cultural aspects is through literature. For example, I did read Tacitus, Thucydides, Herodotus,etc and I consider them a great influence in my understanding of Western culture. I also think that although it is an abstract reach, one can compare reading European military treaties to understand European/American business practices and reading Chinese military treaties to the same affect. It gives one an idea of the ideological background, management styles and history. Aggresive American capitalism with an occasional helping hand from the US military is a part of our economy. The same goes for China, which is kind of like the 3 Kingdoms as different political lords stuggle for power and control over Zhong Yuan.
Also, learning “how to do business from the ancient mysteries of the Wu Tang” sounds like you understand the Daoist/Buddhist ideas of enlightenment 🙂 (一则无量， 无量则一) (One is all and all is one)
ZT says
Another horseshit commentary from a foreigner visiting China and not staying long enough to be really accepted. Had he stayed long enough he would have found that Chinese business people are no different than business people from any other venue. Sad that he thinks business in done in bars. I make millions in deals every year and it is generally taboo to talk business in a bar.
It irks me that these people who just superficially touch China go back to their own countries and publish this drivel.
FOARP says
@ZT – Even if what you are saying is true, what is the point of putting it in such combative terms?
ZT says
@FOARP
Okay…I apologize but I have lived in China for many years and done business here successfully for all that time. I don’t have any problem being accepted and I don’t confuse culture and business. I am irked, as I said, by the foreigners who spend a little time here and then go back home as professed experts on China and Chinese. Oldson is obviously very intelligent and he writes in a way that everyone can understand, as you do also FOARP, but the problem I have is his registration of fact regarding business here. He is dead wrong. Businessmen are businessmen wherever you go. I have no problem with his dissertation on Culture. For the most part he is right on but business is it’s own culture worldwide.
oldson says
@ ZT & FOARP
I should jump in here to clarify a few things. I do not claim to be a Zhong Guo Tong but I have spent many years in Asia. My business experiences in China are either personal or were taught to me my Chinese coworkers. Anyone who claims to be an expert on China is obviously a fool. I only offer my limited experiences in exchange for constructive criticism and open dialogue.
Most of my experiences in China were with the ‘under side’ of the business world with regards to China’s unique socio-cultural structure. I realize that business does have its own subculture which is universal no matter where you go but China presents a special situation. Most business interaction is initially formal and then gradually informal as people become more familiar with each other. Sometimes this does involve entertainment venues. China follows this Asian pattern but I see it as sometimes a “guanxi-ocracy” – where individuals are more tribal and depend more on friends, connections, associates, classmates, etc. The place to communicate with this vast network of friends and potential business associates is through resteraunts and other such public places.
With going out to bars or clubbing, I think the business level I am referring is directed towards the lower level entrepreneur and common businessman. CEO’s and high level businessmen have a reputation to maintain and it is important that they keep away from such seemingly vulgar and pointless activities. They do not go to bars to get drunk and party, but their employees below them do. These employees are the ones that I am referring to. They want to raise their position on the hierarchy so they use their guanxi. Perhaps we could say that in the business personnel hierarchy, the lower you go on the pyramid, there is a higher chance that these individuals will over depend on their guanxi network to help them out and solve their business issues in informal public places?
So my question to ZT is: do you see anything unique about the Chinese business world with regards to different Asian countries? Other countries? How does it differ or compare?
ZT says
Well thanks for forgiving my outburst OLDSON and you ask an interesting question.
There is something unique that confirms your belief in the culture of the people here that affects their business behavior.
Chinese businessmen are real “survivors”. When they start a business or they have one started for them such as an SOE they already have two strikes against them. Business here is hard and oftentimes cruel …to be kind.
The uniqueness comes from the presence of real “guanxi”. The kind that exists culturally and isn’t paid for with bribes. Businessmen here survive by having close relationships with their competitors..yes, I said competitors, as well as suppliers. Those relationships are quite serious and even though they aren’t formed in bars to my knowledge, they become close friendships in many cases.
Under a common cause they develop “guanxi” with one another to survive against the onslaught of unfairness heaped upon them daily by a government who is too involved in business.
Whether a businessman here belongs to the CCP or not makes little difference. Since you have to obtain a license to have an official Trade Association and you cannot speak to the government without one, the only avenue for survival becomes your dependence on your “friends”. The individual voice has no power. These melding relationships help them figure out a way to continue surviving.
Guanxi is the cultural element involved indeed
oldson says
I can see that you really understand guanxi – perhaps we can divide guanxi into 1) loyalty centered guanxi and 2) brown nosing guanxi (money grubbing and bribes).
I have the upmost respect for the real Chinese business person because they most likely grew up in poverty, worked hard through school and started out from the bottom of the corporate ladder. They slowly climbed to the top through their own effort and the assistance of friends and family. That is definently the real guanxi. A number of times I ran into serious problems and I was able to solve them through loyal friends and associates.
And yes, guanxi is a survival necessity in China. I wish that America had stronger relationships because most problems end up in a state of frustration – by calling a Customer Service Rep and waiting on the line to be told that your problem cannot be solved and you are out of luck.
Jack says
I like your strong opinions and overall I think you delivered a vivid picture of Chinese culture and its evolution. You say it may go all Western and lose 5 thousand years of history, which I doubt. As you like sayings, see English sayings and compare them to Chinese sayings You will see that the common sense gave birth to similar values and sayings, but the flavour is nevertheless different. And more, China is a very big country that has a lots of different sub cultures.
I think that the Chinese will change a lot their ways by embracing Western values. Same time USA will evolve rapidly into a different culture. It is no longer the white American male culture, it is also female, hispanic, Chinese, Indian and so on. It’s a huge melting pot of different civilizations and only God knows what will come of it.