Cultural Difference between Chinese and Americans in Business.

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Cultural Difference between Chinese and Americans in Business

         Since domestic and multinational corporations are now marketing their products and services around the world, an understanding of intercultural differences has become evident. Managers of multinational corporations and joint ventures have to negotiate, operate, and make strategic plans that adapt to cultural differences in each environment. As business relationships with China increase, management of multinational enterprises and joint ventures are beginning to realize that success may be jeopardized if attention is not paid to cultural differences (Brunner, Koh, & Lou, 1992).

         Major differences between the Chinese and the Americans include language, geography, history, religion, and political and economic systems. All of these lead to cultural differences. Cultural differences may be interesting to tourists and to students of culture; but to business people, they are impediments. Differences need to be recognized before they can be understood. Only when we begin to understand the differences can we change our ways, adjust our business practices to accommodate the differences, and finally communicate to our counterparts in a mutually understandable manner.

          The significant cultural difference is working relationship. The Chinese are rather group-centered, working together in a group. They depend on each other in their work. They emphasize winning honor for the group. Americans, on the other hand, are independent and individualistic, stressing the dignity, rights, and achievements of the individual and the space and freedom of the individual. Americans in business own farms, factories, companies, and their biggest enterprises are privately owned, while in China, most enterprises are still state-owned. At work, Americans have private offices or they may have an individual cubicle. At home, even small children have their own room. In China, people can work together in the same room and share their homes with many family members.

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         People's willingness to express themselves and take risks is different. Americans are open-minded, straightforward, and easy-going. They have rich facial expressions, revealing to some extent whether they are happy or unhappy and whether they have done their business successfully or unsuccessfully. Americans can more easily say "no" and are more likely to show their frustrations and anger when things are not working out. In negotiations, Americans can be more than emphatic in their demands. The Chinese on the other hand, are rather introverted and conservative, and they don't reveal their feelings easily. They treasure something inside. ...

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