China is one of the world’s fastest growing economies and is viewed by many as the factory of the world. Doing business in China has never been more rewarding as investments are producing enormous gains from across all industries. However, the risk factor remains quite high, as China is one of the least understood countries mainly because of its late entry into the market economy. Going into the Chinese market without sufficient knowledge on its culture is indeed dangerous. Ultimately, investors and people who seek to reap from this Chinese boom need to understand the Philosophy behind how the Chinese system works in order to succeed in their ventures.
One of the most highly regarded schools of thought in China is Confucianism, which of course, are based on the teachings of Confucius. Many Chinese principles and practices are firmly rooted upon this ideology some of which are still highly regarded in China even to this date.
This philosophy emphasizes that man’s main goal is to become a virtuous being. In addition, he must be a man of learning and good manners. To put it more accurately, “the perfect man must combine the qualities of a saint, scholar, and gentleman.[1]” It stressed four main virtues that a man must possess. The first is sincerity in which a man must be truthful, faithful to his promises, and conscientious in his duties. Second is benevolence wherein mutual benefit is seen as the main goals of decision-making. Thirdly, the virtue of filial piety encourages sons and daughters to give respect to their parents and to contribute to the success of the family. Last is the virtue of propriety wherein human beings are asked to do the right thing simply because they are right.
There are several key practices that are rooted from the Confucian value system. Chinese practices like guanxi gives importance to the relationships we form with other people. These relationships can serve as a network of connections wherein we may be able to seek help when we need one and also assist others with their needs; in other words, mutual respect is needed. Mianzi or face-saving is also a very important aspect in Chinese culture. Honor of one’s family as well as one’s own name is regarded highly as a value and being shamed inappropriately may cause trouble. Conversely, giving praise to others hastens relationship building and trust among Chinese individuals. Ke Qi is another important Chinese practice wherein humility and proper behavior especially to guests are important.
Knowing these philosophies and practices whole-heartedly when doing business in China can certainly minimize the trouble that might result from lack of cultural understanding. In business dealings or joint ventures, one may deduce that the Chinese will only close the deal if they can first earn your trust. It is imperative to keep your word because it is hard to heal the wounds of the relationship once the trust is broken. As seen from above, mutual benefit is key to the Chinese so it is important for people to be aware of what benefits they can offer to their Chinese counterparts. In addition, the Chinese prefer direct-to-the point discussions and flowery exaggerations of what benefit they might get from you might not be welcomed.
In dealing with employees, egalitarianism remains an important value for their motivation. We can see that this is rooted upon the Confucian value of benevolence. Egalitarianism is still quite rampant as the Chinese came from a society wherein employees get equal treatments and salaries. As an example, a Chinese employee might be motivated more if he teams up with other people when doing a specific task. Rewards may also be more proper if they are shared within the group rather than given individually to the “more deserving” people.
As China opens its doors to the world, more and more people are discovering how to play China’s rules of the game. Some get confused and give up, while others take time to understand the Chinese philosophies and in the end, reap the rewards that China has to offer.
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