Country Assessment of China - Research Paper Example

Country Assessment of China China is one of the fastest growing economies in the world, and is predicted to become the world’s largest economy sometime over the next century. Because of these facts, China is a great place to invest and do business in. Before entering the Chinese market, there are some issues that need to be considered. This paper will touch on Chinese culture, business management practices, government influence on business, and what a foreign business needs to be a success in China.

The vast majority of Chinese are either Taoist or Buddhist (Kwintessential). There are a number of languages spoken in China, but the two main ones are Mandarin and Cantonese. Because China culture is largely based on Confucianism, Chinese people show great respect for their elders (Kwintessential). Chinese are more of a collectivist society; as such, an individual would sacrifice his or her needs for the group’s objective. Face is very important in Chinese society because no one likes to embarrass their superiors.

Also, most communication in China is done through non-verbal communication (Kwintessential). Body language is just as important as what is spoken. Any overaggressive behavior is likely to be frowned upon as losing control is to lose face. Because Confucian philosophy believes that all relationships are not equal, there are differences in the way the employers and employees should be treated (WorldBusinessCulture). Seniority is very important when it comes to Chinese business management practices; managers demand respect from their employees in the same way that an old person would from a young person.

Business is China is very formal; managers inform their subordinates what task they should be doing, and there are never any complaints from the employees. A manager is like a father figure to his employees (WorldBusinessCulture). The manager expects loyalty and commitment, and in return he will offer support for his employees. Because the Chinese government is Communist, it takes a hard line when it comes to business. This has eased up in recent years as the government has opened up the country to foreign investors.

The Chinese economy could now be thought of as capitalist, even though the government is still Communist. The managers of most large Chinese domestic firms are linked in some way to the ruling Communist Party, and the government often places pressure on businesses to go a certain way (WorldBusinessCulture). Besides this, the United States of America has long held the view that the Chinese government manipulates its currency, the Renminbi or Yuan, so that its export industry remains competitive.

Foreign investors in China can expect plenty of government intervention when it comes to business activities. For a foreign business to become successful in China, it needs to take a lot of time getting to understand the culture first. This will go along way to business success, because relationships are the key to forming good business partnerships. Because China is such a large market, it may help to find a reliable Chinese business partner (Denlinger). Overall, the key to business success in China is to get involved for the long term and remain patient until a business opportunity presents itself.

Works CitedDenlinger, M. Paul. 7 Secrets to Business Success in China. 2003. 30 April 2012 .Kwintessential. China - Language, Culture, Customs and Etiquette. n.d. 30 April 2012 .WorldBusinessCulture. Chinese Management Style. 2012. 30 April 2012 .