People’s Republic of China

1. People’s Republic of China Angela Farmer Chris Fishback Melinda Lobaugh PatatAyuwathana

2. Interesting Facts • 34 Chinese children are born every minute • There are about 40,000 characters in Chinese language • Inventions from China: • Paper • Compass • Gun Powder • Printing • Chopsticks • Flame throwers • Ice cream

3. Demographics • Population: 1,330,141,295 (July, 2010) • Ethnic groups: 91.5% Han Chinese, 8.5% others • Growth rate: 0.494% • Main dialects: • Mandarin (national dialect) • Cantonese • Hundreds of other dialects in various regions • Religion: Buddhism • One-child policy

4. Economics • GDP: • 10% growth forecasted for 2010 • Inflation rate: 3.6% (Sept, 2010) • Unemployment rate: 4.3% • Exchange rate: $1 to ¥6.64 • Stock market: Hang Seng Index

5. Economics, cont’d. • Exports: $1.204 trillion • Electrical machinery • Apparel • Textiles • Iron and steel • Imports: $954.3 billion • Electrical machinery • Oil and mineral fuels • Metal ores • plastics

6. Political System • Communist Party • Established 1949 • Mao Zedong • Key members • Chairman: HuJintao • VP: Xi Jinping • Premier of the State Council: WenJiabao • Capital: Beijing • No civil liberty • Censorship • The Great Firewall of China

7. Cultural Groups Han Chinese: largest ethnic group 91.5% (1.2 billion) Zhuang: 1.2% (16.1 million) Manchu: (10.6 million) Hui (9.8 million) Miao (8.9 million) Uyghur (8.3 million) Tujia (8 million) Yi (7.7 million) Mongol (5.8 million) Tibetan (5.4 million) Buyei (2.9 million) Dong (2.9 million) Yao (2.6 million) Korean (1.9 million) Bai (1.8 million) Hani (1.4 million) Kazakh (1.2 million) Li (1.2 million) Dai (1.1 million)

8. Regional Subcultures • Hong Kong • Mainly populated by Cantonese • Known for combination of Chinese Culture and British bureaucracy. • Taiwan (not really apart of the PRC) • Ruled by Nationalist Party • Emigrants from Fujian and Guangdong provinces • Mixture of Confucianism, Taoism, and Buddhism • Tibet • Highest Region in the World • Home of the Dalai Lama • http://www.youtube.com/watch?v=8x-nQ-vPw5k

10. Cultural Dimensions – Hofstede’s Individualism vs. Collectivism Small vs. Large Power Distance • Masculinity vs. Femininity • Weak vs. Strong Uncertainty Avoidance

11. Hofstede’s, Contd Long vs. Short Term Orientation

12. Trompenaar and Hampden Turner’s • 1) Universalism vs. particularism • (What is more important, rules or relationships?) RULES - Universalism • 2) Individualism vs. collectivism • (Do we function in a group or as individuals?) GROUP - Collectivism • 3) Neutral vs. emotional • (Do we display our emotions?) NOPE - Neutral • 4) Specific vs. diffuse • (How separate we keep our private and working lives) NOT VERY - Diffuse • 5) Achievement vs. ascription • (Do we have to prove ourselves to receive status or is it given to us?) GIVEN - Ascription • 6) Sequential vs. synchronic • (Do we do things one at a time or several things at once?) SEVERAL - Synchronic • 7) Internal vs. external control • (Do we control our environment or are we controlled by it?) CONTROLLED - External

13. Kluckhohn and Strodtbeck • The essential nature of people • Good/evil/mixed Basically Good • Relationship to nature • Dominant/Harmony/Subjugation Harmony • Relationship to other people • Hierarchy/Collateral/Individualist Hierarchy • Modality of human activity • Doing/Being/Containing Being • Temporal focus of human activity • Future/Present/Past Past

14. Cultural Dimensions, contd • Why these values? • Preference • China’s history • Consequences of non-conforming • Work Ethic • Attitude Towards Change

15. Customs • Greetings • Handshake (usually a ‘deadfish’ and longer than US) • Bowing to officials or elders • Pat small children on the head • Business Gift Giving • Bring something native to your region (wrapped in colorful colors) • Give w/ both hands • No duplication

16. Customs, contd • Key Holidays/Ceremonies • Chinese New Year (2010: Feb 14) • Zhonghe Festival • Eat Chinese pancakes and clean the house • Spirit Festival • Burn fake money to appease your ancestors and they won’t trouble the living. • Tipping – not usually, but can be appreciated at times • Bellhops, waiters, and what not.

17. Communication • Mandarin Chinese is spoken in just about every setting. • Overseas business is communicated in English • Business Etiquette • Friends first, businessmen second • Conservative suits w/ subtle colors • Women – avoid heels and short-sleeve blouses • Business cards – give individually and offer assistance • Nonverbal • Rude to point to someone • Rude to stare, expect very little eye-contact • Personal Space • Not that important, “close-talkers”

18. Communication, contd • Conflict Management • Try to avoid: Harmony, not justice • Food Etiquette • Most important person sits furthest from the door • No one sits until the guest of honor does. • Chopsticks (duh). Keep ‘em clean and they’re not toothpicks. • If you’re a guest, eat the food! It’s rude if you don’t. • Close your mouth.

19. Current Chinese MBA Students • Zhang Bo, University of International Business & Economics, Beijing, China • Song Qiuling, Central University of Finance & Economics, Beijing, China

20. Questions to Consider • Language requirement • Curriculum • Work experience • Classroom environment • Daily lifestyle as a college student

21. Higher Education in China • The National College Entrance Exam is almost the sole determinant for college entrance in China • Nine-hour long exam held only once a year! • Nearly 10 million students competing for 6 million spots (2010) • No age limit but must have high school diploma in order to take the exam

22. University Admission Process • Peking & Tsinghua University most prestigious • Different university tiers require different score range • Students list university preferences before OR after the exam

23. Issues Within the University Admission Process • Government regulations to prevent cheating • Regulating internet • Shutting down internet cafes • Wireless earpieces, scanner-embed pens • Family pressure & influence • Promising luxury gifts to children • Internet scams to buy exam questions and answers • Physical Health • Physical illness • Suicides occur every year!

24. Public v. Private Universities • Public institutions preferred over private institutions • Students who score poorly on the National College Entrance Exam can attend private schools

25. Prepared for the Job Market? • Wall Street Journal – China Daily newspaper reports: • Study of top 1,000 test scorers from 1977 – 2008 • None had outstanding success in any industry • Top test scorers become instant celebrities • Local TV and radio interviews • Individual study habits examined by public

26. Chinese Job Market • Universities accepting more students than ever before • Employers seeking low-skilled, blue-collar workers • Number of high-skilled, high paying jobs not ample relative to number of graduates • Many college grads facing unemployment

27. Business Environment • Questions to ask MBA students: • Do you think China businesses have a problem with bribery/corruption? If so, please name an example that you would consider to be the worst? • What country do you think China does the most business with? • When you think of an American business, what do you think of? • How would you describe an American business person?

28. Business Relationships • Most business relationships become social relationships, unlike U.S. where most business relationships stay professional and aloof.

29. Corruption • On average, 140 thousand party officials and members were caught in corruption scandals each year in the 1990s • Only 5.6 percent were criminally prosecuted • 2004:170,850 party officials and members were implicated, but only 4,915 (or 2.9 percent) were subject to criminal prosecution. (Minxin, 2006: 7)

30. Management Aspects • Questions to ask MBA students: • What kind of relationships do normal employers/employees have? • Are personal relationships at work important to you? • How do you view authority within the business environment in China? • What do you think about women in the business world? • What does it take to get promoted over another person? • How does a typical business meeting run in China? • What is the proper after-meeting etiquette in China? • What are some do’s and don’ts when it comes to doing business in China?

31. Management Style • Confucian Approach – the older the person, the more respect is given to them from the younger generations • Management style “tends towards the directive, with the senior manager giving instructions to their direct reports who in turn pass on the instructions down the line • It is not expected that subordinates will question the decisions of superiors - that would be to show disrespect • Source: http://www.worldbusinessculture.com/Chinese-Management-Style.html

32. Women in the Workforce • Laws say equal rights but “the liberalization policies of the last decade might have reversed many of the advances made by women in Chinese society under the previous hard-line regimes.” • Source: http://www.worldbusinessculture.com/Women-in-Business-in-China.html • Foreign women will be treated with respect but when it comes to decision making, Chinese will naturally defer to the males.

33. Business Cards • When giving out name cards or brochures, make sure you start with the most senior person before moving down the line. • When giving out a name card or receiving one, ensure that you are stretching out with both hands with the card. Remember to face the card you are giving out in a manner such that the receiving party gets it facing him correctly. • http://www.chineseculture.net/html/chinese_business_culture.html