The Three Advantages Western Executives Will Have in China

Since the normalization of trade and China’s acceptance into the World Trade Organization in 2001, the lure of vast untapped markets have drawn companies from all over the world. Though China has a huge market potential, thus far few foreign companies have found an equally huge success.

Even the Japanese and Taiwanese have had difficulties exploiting China’s markets despite having closer ties to, and a better understanding of China. There are many reasons for this. China’s experience under communist rule was dramatically different from Taiwan’s or Japan’s’ during the same era and have shaped many business practices. The vast geographical and cultural differences of China are more akin to the European Union with Chinese provinces being as different culturally as Italy is to Finland.  Adding to the confusion is the accumulation of four-millennium worth of habits, all of which have created a unique business environment that is constantly evolving.

Initially it may seem as though the Western executive is at distinct disadvantage doing business in China, but there is an up side. Western executives have unique advantages over their local Chinese, overseas Chinese, and Japanese counterparts.

The first advantage is directness. Because so much in Chinese social and office interactions depend on the all-important concept of “Face”, many Chinese tend to be reluctant to make quick decisions and will look to find a consensus before committing to a decision. The result is Chinese managers can be notoriously hesitant and indirect. As a Westerner, you are outside the political circle and would not be expected play the game of office politics. Thus, you can be more direct in voicing opinions and ideas that others cannot for fear of upsetting coworkers. Rather than be offended, many Chinese will appreciate the Westerner’s straightforward approach and ability to get to the point.

The second advantage Westerners enjoy is that the Chinese do not expect them to understand and comply with Chinese etiquette. Should you make some cultural faux pas, the Chinese staff will be forgiving and take it all in good humor. This gives you considerable leeway socially as well as in making deals since you can be more aggressive during negotiations and feign ignorance if you stretch the limits of negotiations too far. Conversely, should you display some knowledge of  Chinese etiquette and culture, you  will almost immediately make a good impression and be considered an educated and culturally sophisticated person, an honor in a society that places the highest value on education. This will put you on the leading edge of the learning curve and enable you to make friends, conduct business successfully, and enjoy your experience.

Lastly, despite the occasional cultural misunderstandings and prejudices, most Chinese admire Westerners and western civilization. Westerners are considered somewhat exotic and there is a certain cachet in having western friends and business partners. With tact and a subtle manner you can use your almost celebrity-like status to great advantage.

So despite the disadvantages of doing business in an unfamiliar culture, there are also certain advantages and it is back to intelligence and personality to determine success.