History That Influences Current Business Activities in China - Report Example

Business in China China has the largest population in the world and at present experiencing fast development in areas of economy, industry and business. Its financial system had a rapid growth among the Asian countries since last 1980 and the second largest economy in the world after the United States of America. The industrialization has offered majority of the Chinese population with greater purchasing power and higher standards of living. The modernization of China in the direction of Western values, customs and ideas has directed the society towards industrial and economic development from basic dependency on agriculture. This economic growth due to modernization is going to raise GNP and lessen poverty of China (Byrne et al. 2-28). History that influence current business activities in china The Chinese organizations are gaining access to international markets and looking to widen their market position. At present China is the model for the world, like as Britain once was. Britain manufactured products in large scale efficiently in the 19th century. Now China is taking the lead position in the world economy and in science and technology. Between 1970’s and 1980’s the economic reforms and the entry of China to foreign trade and investment have revolutionized many regions of China, specially the coastal regions. And also the investments have grown faster. Their product quality levels are incredible, like as Japan in the 1950’s and 1960’s. China copied Soviet, then Western and Japanese strategies. Presently, production operations are achieved global standards in a lot of Chinese companies. Early 1990’s China changed from being oil exporter to a major importer. Consequently, China is investing billions of dollars from its business earnings into foreign energy assets. To get benefits from these assets, energy companies must globalize their operations and change the way of management (Lockett and Hill 1-9). In recent times China symbolizes an amazing case of financial development in the world market. The changes are due to the number of people in the market, the various monetary reforms faced by the government, and the pace at which the nation is creating the change to a full market economy. The expected growth, its gross domestic product (GDP), is to enhance more than seven times over the next 20 years. The automobile industry in China indicates an unusual case of industry growth. For entry to the World Trade Organization (WTO) in 2001, China required committing to foreign investment, and that investment keeps on pouring in. As of 1994, overseas automakers have invested close to US$20 billion in China (IBM Business Consulting Services 1-30). Language and verbal and nonverbal communication customs in china Diverse nationalities have definite gesture and emotions. But, due to the diverse conditions and civilization, the similar gesture and emotion has different sense for different people. Hence, it is useful for one to know people by their fundamental nonverbal communicative skills. China’s ancient culture and civilization is well known. Even though the verbal language, the nonverbal communication gestures lasts for a long time, it changes in different historic times. It is necessary to distinguish between the dead and the modern gestures. This gesture groups are symbolic because there may be old gestures which are still used in some part of China. Nonverbal communication comprises not only gestures, which are part of the body language but also imitate, which are facial language (Mu Zhiling and Li Guanhui n. pag). The greeting gesture of western norm of shaking hands is acceptable form for Chinese, but even a nod of the head or minor bow will do. Exchange of business cards using both hands with the name printed in Chinese are also a common practice. The Chinese use clapping to greet people and other person also expected to return the applause. Touching gestures are not acceptable for Chinese. The Chinese normally stand much closer than Westerners. Other nonverbal gestures are one has to be humble with older or senior people and posture is important. Silence is a sign of politeness and during discussion do not disrupt. On public roads, spitting and blowing the nose without a handkerchief is common, but the government is taking action to reduce this (Imai n. pag). Education systems and literacy rates in china After the formation of the Peoples Republic of China, the government gave more significance to education and tried to enhance the cultural quality of the people for the building of the nation. In 1949 China had 500 million people and 80% were uneducated. Chinese government made educational policies as a result the students going to school improved fast. At present 91 percent of country has made compulsory primary education as a result 99 percent of children are attending schools. As a result of reform and opening policies in 1978, Chinas education got on the road to fast growth. China has achieved substantial gain drawing global attention in education. Understanding and giving main concern to the growth of education is the foundation of the two major nationwide strategies of developing the quality of the people and revive the nation on science and education and achieving continued growth. While the human society enters the information and technology age, education has an important role play (AsianInfo.org, n. pag). Role of social institutions, such as family, religion, labor unions and place of employment in China The Peoples Republic of China (PRC) is a dictatorial country in which the Chinese Communist Party (CCP) is the supreme foundation of power. All top government, police, and military positions are held by party members. Maximum power rested with members of the Politburo. Citizens do not have the freedom to express opinion to the party-led political system and the right to remove their national leaders or form of government (Bureau of Democracy, Human Rights, and Labor n. pag). Chinese government does not recognize the international labor rights and presently has more labor leaders in prison than any other country in the world. Chinese employees do not have any right to form or join free trade unions. Collective negotiations for better wages and working conditions by free unions are not allowed. Strikes and democratic labor protests are banned in China. There has been a lot of change today in the family structure. The father still remains the family leader and decision maker. He controls the main decisions of the children. But, usually he no longer exerts total control. The father not responsible to arranges the marriage, though this still remains in some of the most traditional families and in less developed areas. Children can select their career fields, but influenced by the father (ChinaUnique n.pag). Shopping practices and commonly eaten foods unique to china Having food in china is lot of fun and joy. Pick the bowl up to three inches from mouth and move huge amounts of food in with chopsticks. There is always a selection of foods on the table and can try each food in turn. One has to use his tongue to pack all food firmly, like chewing tobacco, and speak usually. When served chicken or fish, one has to put the whole thing in his mouth, and has to spit it out on the table. Normally, the Chinese don’t drink while eating. Lastly, a piece of fruit is served (Graceffo n. pag). China is one of the ideal places for shoppers with various goods, and will make one happy. There are superb memento and gifts for friends and relations, special products of various kinds, including Chinese silk, tea, antiques, paintings and calligraphy, Chinese medicines, jade and pearls, handicrafts many other choices. Major holidays and customs There are ten national holidays in china such as New Year’s Day, International Women’s Day, Tree Planting day, International Labor Day, youth day etc. and various other Chinese traditional holidays. The culture is said to be as the arts, beliefs, customs, institutions and all other product of human work and idea shaped by a group of people and the Chinese culture is affluent, and it has history of thousands of years. The traditional dress is still the long gone. The wedding in China, the bride will wear a white bridal gown, as is worn in weddings in the western countries (ChinaUnique n.pag). Business practices related to place of employment, types of businesses, length of workday and hiring practices in china. The two deltas of China, the Pearl River and the Yangtze, have attracted global companies for investment. This is because of their growth and access to ports, airports and other facilities. However this is changing as costs for land, labor and utilities in both deltas and challenges with site availability, labor problem, electricity and environmental concerns. For fixing locations, one technique is to search further interior in China, but this create problems longer transportation , dealing with local authorities, often accepting less developed technological environment and various other issues (Business-in-Asia.com n. pag). The main attraction for foreign investor is its low labor costs and laborers can be hired for as low payment of US$ 60 per month and graduates can be employed with pay as low as US$150 per month. Contracts are usually needed for employment and specify probation periods of not more than six months. The working hours are eight per day and the forty-hours per week and overtime pay is consented by law, and there are legal limits on maximum overtime. Paid leave and length of leave one can avail varies according to local rules (Carnes n.pag). Work Cited AsianInfo.org, Education and Literacy in China, 15 April 2007 Read More