Chinese business is rooted in tradition
In order to be successful in business we should know special features of doing business in different countries. Business in China is influenced to a great degree by ideas of ancient philosophies and customs. Teaching of Lao Tzu and Confucius and practice of feng-shui are not only studied but followed by many businessmen. Construction of the Hyatt hotel in Singapore and a US-controlled bank in Hong Kong was conducted with participation of experts in the Chinese art of architectural design known as feng shui.
Ancient principles appear to be the most important for business leaders, who say that their business is deeply rooted in the philosophies of Confucius, Lao Tzu and Sun Tzu.
Traditional values influence business practice and behaviour of people in many ways. The Chinese prefer to listen rather than talk. Flying arms and moving hands to express or emphasize points are considered ill-mannered, as are physical displays of frustration and enthusiastic slaps on the back. Keeping a low profile can be a virtue.
A great number of books was written about business behaviour but there are actually no books on social, psychological and cultural issues of doing business in China. Wharton School professor Ming-Jer Chen wrote a book “Inside Chinese business— a guide for managers worldwide” for Western executives to help them understand Chinese traditional values and their influence on modern business prac-tice “I want people to be able to understand what to do in all sorts of situations”, said Chen.
The nature of Chinese business, and why it is so difficult to understand, is that events are seen not in isolation but as inter-related. A lot of things can be learned by focusing on the interrelation of things.
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1.18 Bicycle Kingdom “Turning to cars”
People in China are fond of bicycles, but these days they are falling in love with cars. Not many people can buy a car as it is very expensive The average wage a year is $759, and a car costs much more But a large number of entrepreneurs and professionals get high salaries and start buying cars. The number of private cars is growing by 30% a year. In the financial center of Shenzhen, near Hong Kong, car sales are booming and increase by 200% a year. According to official sources, 3 million cars are already on the road. The car is a status symbol, business tool and just a convenient means of transport. It changes lifestyle of people. These days China can be compared with America of the 1950s when cars were flooding the streets of the cities.
Almost every foreign car maker is trying to enter China’s car market. General Motors, Toyota and others are increasing production. General Motors which set up production in China to avoid high import taxes, started producing an inexpensive sedan. The company has taken deposits from 15,000 buyers. Many people take bank loans in order to reach their dream. There are drive-in movie theatres, private driving schools and service centers. Even Chinese without cars can answer the call of the open road thanks to rental agencies in big cities. French company Citroen is starting the first chain of rental offices in the country.
The cities and towns are not ready for a great number of cars. The streets are narrow, and there are often traffic jams and accidents. Most drivers have little experience, they run red lights and park on sidewalks.
The government is trying to increase car sales. It offers cheap loans, low taxes and changes rules. The government is investing into construction of high ways and expressways.
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Contracts
The Contract is a business agreement between two parties which buy or sell goods or services. Contracts are concluded either between companies in one country or internationally, that is between companies from different countries.
The Contract has the following clauses or articles:
1) Naming (definition) of the parties and their legal addresses.
2) The subject of the Contract, that is what goods or services will be bought or sold and the volume of delivery.
3) Prices and the total value (amount) of the Contract including terms of delivery.
4) Time (dates of delivery) is shown in the Contract too.
5) Terms of delivery.
6) The Contract also specifies packing, marking and terms of payment.
7) The Contract also includes terms of insurance (if any) and a Force Majeure clause. It usually includes natural disasters such as an earthquake, flood, fire, etc. which the parties can’t control.
8) It is also specified in the Contract in what ways disputes are solved.
All the clauses of the Contract have numbers, and in the negotiations or correspondence one can refer to the specific clause or sub-clause.
The international Contract is usually written in two languages, one copy for each party.
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Business letters
Business letters writing is very important in normal commercial activity. In spite of development of electronic means of communication, letters are very important in business. They are usually written on the letterheads.
The heading gives the name of the company, the postal address, telephone and fax numbers, e-mail and home page in the Internet.
The ordinary business letter has the following parts 1) The Date. 2) The Inside Address. 3) The Opening Salutation. 4) The Subject. 5) The Opening Paragraph. 6) The Main part of the Letter. 7) The Closing Paragraph. 8) The Complimentary Closing. 9) The Signature. 10) Enclosures, Postscripts.
In English business letters the date (day, month and year) is typed on the right-hand side. It is usually typed in full, for example, 27th November, 2010 which is pronounced “the twenty seventh of November two thousand ten”. En American business letters the date is written in the following way: November 27, 2010. The dates shouldn’t be typed in figures as it can be confusing, because in the USA there is a practice to write the date in a different way: month, day and year. So if you write 11.02.2000 it means the second of November 2010 in the USA and not the eleventh of February.
The Main Part of the Letter should deal with one specific subject. The language should be simple and clear. To make a letter easier to read, divide it into each paragraph dealing with one idea or one aspect. If several subjects deal with the same topic, they should fit together logically.
If the letter is long, the paragraphs may have headings which may be typed in ordinary or capital letters. If the letter has more than one page, they should be numbered.
The second and the following pages are typed on blank sheets without the letterhead. The name or initials of the recipient should be placed at the top of the left-hand side of all the sheets.
You can finish the letter with such phrases as: I look forward to meeting you/ hearing from you; We look forward to receiving the proposal / your order / quotation / your reply.
The Opening Salutation varies and should correspond the Complimentary Closing.
If the Opening Salutation is: Dear Mr / Mrs White, the Complimentary Closing is: Yours sincerely in British English and Sincerely Yours (Very) truly yours in American English.
If Opening Salutation is: Dear Sir / Madam / Sirs, the Complimentary Closing is: Yours Faithfully and if you address your friend and use a name, you write Dear Peter and the Complimentary Closing is: (With) best wishes or (best) regards.
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