We all know that China is one of the main players in today’s world economy. China is a millenary country that has been always one of the main (when not the main) powers in Asia. Today it is the most populous country in the world with 1,338,612,968 inhabitants.
China is the third world economy and registered a 9, 5% average economic growth in the last two decades which represents one of the most solid economic transformations in the history. They have identified themselves as a socialist country with a market economy.
China’s background is characterized by agrarism (Two-thirds of the Chinese people still live in rural areas and there are collective farms –Mao’s legacy), Confucianism (that has served as the foundation of Chinese education for 2,000 years; Confucius maintained that a society organized under a benevolent moral code), pictographic language, and wariness of foreigners (in a big part due to the country’s violent history being attack from all the powers).
Chinese organizations work based on eight principles. These elements are a blend of Maoist bureaucrat in learning, Confucian gentleman, and Sun Tzu-like strategist. The first one is the Guanxi principle, which is related with personal relations. According to this principle Chinese place a premium on individuals' social capital within their group of friends, relatives, and close associates. Zhongjian Ren is a principle more related with intermediaries and distrust. It stands that In China, suspicion and distrust characterize all meetings with strangers. Other principle is Renji Hexie (Interpersonal Harmony) which underlines the importance of harmonious relations between business partners. The social status and the Confucian values of deference and obedience to superiors are very strong and are tied to Shehui Dengji’s principle. We can see a big difference between Chinese and western culture, Chinese think in term of the whole (in a holistic way) while Americans think sequentially and individualistically and this is due to the Zhengti Guannian principle. Jiejian (Thrift) is a principle related with saving money; Chinese negotiators will pad their offers with more room to maneuver than most Americans are used to, and they expect both sides to make concessions on price. In Chinese business culture, a person's reputation and social standing rest on saving face, which is observed in Mianzi principle. Finally, thanks to the Chiku Nailao (Endurance, Relentlessness) they prize highly relentless hard work.
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