In China, building friendships based on trust is essential for long-term business partnerships. However, for many outside China, developing this trust can be challenging, highlighting the need for cultural fluency in Chinese business dealings.
The International Chamber of Commerce, Jus Connect, and McCann Truth Central conducted a study titled “The Truth About Cross-Cultural B2B Relationships.” This study aims to help businesses and law firms create better communication plans for cross-border trade. One key finding is the need to map the world based on cultural differences and similarities rather than geography.
Pragmatic Realism in Chinese Business
China is characterized by pragmatic realism, with a focus on specific requirements, practicality, and structured meetings. This sets it apart from countries that prioritize creativity and flexibility. Understanding these behaviors, rooted in Chinese culture, is crucial for effective business strategies. Chinese culture integrates Confucianism, Buddhism, and Taoism, with Confucianism being dominant. The five key elements of Confucianism are humane, duty, courtesy, wisdom, and honesty. Harmony, the fundamental doctrine shared by these philosophies, emphasizes balance and appropriateness in all relationships.
Harmony’s Impact on Business and Dispute Resolution
The concept of harmony influences how Chinese people conduct business and resolve disputes. They prefer to address concerns discreetly to maintain harmonious relationships and favor amicable dispute resolution over direct confrontation. In 2022, Chinese courts mediated 8.95 million cases before litigation, resolving one-third of disputes through mediation.
Balance in Chinese Culture
Chinese people believe in maintaining balance and that extreme situations eventually lead to their opposites. They pursue pragmatic goals aligned with the law of development rather than aggressive goals. This explains their openness to giving partners a second chance and focusing on win-win situations for long-term harmony.
Chinese civilization has endured for over 5,000 years, guided by principles that respect authority and emphasize group interests. Business decisions in China are based on responsibility to superiors and leaders. Chinese companies may prioritize non-economic factors, such as responsibility and public image, over immediate economic benefits.
Conclusion
Understanding the deep-rooted cultural values and principles in China is essential for successful business relationships. Trust, harmony, and balance are key components that guide Chinese business practices and decision-making processes.