DOING BUSINESS IN CHINA

Doing Business in China

Doing Business in China

Introduction

Although in spite of the growing influence of China, for the companies that aspire to do business in China still face challenges. Language, business etiquettes, corruption, and intense competition are few obstacles, which the companies are normally confronted with. The examples given in this paper regarding protocol, business etiquette, business practices and cultural differences show the numerous areas within which companies and their employees could be confronted with challenges. For all international organizations, companies or persons the cross-cultural comprehension is a vital tool that needs to be acquired while doing business in China. In addition to this the paper explored the culture in China via 5-D model lens in order to obtain a better impression of the Chinese culture's deep drivers. As the potential persists on growing, so doing business in China would gain much significance.

Discussion and Analysis

Brief Overview of China:

Chinese are considered to encompass an oldest continuous civilization. The country has a verifiable history of more than four thousand years. The capital of the country is the Beijing city, which is even the hub for China. Standard Chinese is the official language of the country that developed from the Mandarin dialect. English is spoken by the majority of the business individuals. Even though within China there are a number of dialects, nonetheless the language that is written is only one. In China the ruling government has a communist structure that encourages atheism, even though the freedom of religion is guaranteed by the constitution of the country. A number of religions are practiced within China; nonetheless, Confucianism; in spite of not being an official faith is practiced extensively all over China. The country is one of the most heavily populated nation of the globe. Nearly everyone in China is Han or ethnic Chinese. As far as childbirth is considered there exist stringent regulation and all couples are restricted to merely a single offspring (Williams, 2012).

Why China is preferred globally for doing business?

With countries in the West continue to be caught up in financial chaos, companies and businesses are seeking for getting footholds in countries like China and other East Asian and Pacific countries, with the hopes of expanding the middle class and tapping the growth. The strong economic growth, together with numerous reforms by the government and swift transformation in the market imply that China, which is the 2nd largest economy in the world, is no more merely a nation for manufacturing at reduced costs. It is even a progressively rewarding place for doing business. A number of companies from the West, which include multi-national companies like Procter & Gamble, Boeing, Volkswagen and Starbucks, are ensuring their presence within China (Kermeliotis, 2011).

As per the report by 'UK Trade & Investment and China-Britain business Council', the focal point for numerous UK based companies in China persists on being in a small number of familiar and large cities like Shenzhen, Shanghai, Guangzhou, and Beijing. Nonetheless, the conditions of business within these cities are developing ...