Business Culture in China - Essay Example

Economic Environment Economic environment refers to all economic factors such as economic structures, economic philosophy of a country, economic policies, planning, controls and regulations which affect the functioning of a business organization in a country. In China, the government has absolute control over all markets and owns all resources. The buying power of the people of China is high and continues to rise constantly and with this rise, tremendous business opportunities are created. The high population of China also provides a good market for products as local consumers eagerly purchase western goods.

In addition, the high population also provides ready and sufficient labor to the business firms or organizations (Yong, 2005). The stock market is also an economic indicator of how the Chinese economy is performing. Investors can get information on the performance of any sector of business that they wish to invest in through the stock market. From a market perspective, the pressure to innovate has not existed in China because the demand for goods has never outweighed supply. The Chinese innovation has also been affected by the economic impact of the low labor costs and the foreign direct investment policy.

China’s has a good infrastructure that promotes business operations. It has good communication systems, transportation systems, energy facilities and internet and technology (Yong, 2005). Legal Issues The legal environment incorporates a number of legal regulations of doing business in a given country. The regulations ensure that the interests of businesses organizations do not go against the national interests. The regulations can either be government legislations or. This essay gives an insight into the business culture of Chinese people.

For example, showing impatience or humility in a business deal implies mischief and one can change the power balance in one’s favor. Guanxi (which means relationship) is also a very vital characteristic of the business culture of China. Good business relationship reduces frustrations, disappointments and risks in business. The Chinese culture is very different from the western culture in that whereas the western countries make deals with any person, Chinese people will only make business deals with those whom they think are trustworthy.

Therefore, for the western countries to do business with them, they have to prove that they are trustworthy. Economic environment refers to all economic factors such as economic structures, economic philosophy of a country, economic policies, planning, controls and regulations which affect the functioning of a business organization in a country. In China, the government has absolute control over all markets and owns all resources. The buying power of the people of China is high and continues to rise constantly and with this rise, tremendous business opportunities are created.

The high population of China also provides a good market for products as local consumers eagerly purchase western goods. In addition, the high population also provides ready and sufficient labor to the business firms or organizations. China has for many years been politically stable and this has promoted foreign investment.