China Business. It Helps To Know The Culture: Responses to Comments

A week or so ago, Jason Patent wrote a three part series on incorporating knowledge of Chinese culture to better your business in and with China. I asked Jason to write these posts after having listening to?Jason give the best talk I have ever seen/heard on the cultural differences between China and the United States as those differences relate to business. Jason's first post was entitled (by me), "China Business. It Helps To Know The Culture," his second post was entitled (again by me), "China Business. It Helps To Know The Culture. Part II. Dealing With The Ethical Gray Zone," and his third post was entitled (yes, by me), "China Business. It Helps To Know The Culture. Part III. Stereotypes As Excess Baggage."

All three posts generated a substantial number of excellent comments, both pro and con. Many of the comments raised issues to which I thought it would be helpful for Jason to respond. So I asked Jason to write another post addressing the comments and he graciously agreed to do so and here it is.

Audiences are often polarized by the claims I make about differences between Chinese and Western mindsets. It's been no different here, in the comments left on my three guest posts. Most everyone falls into one of two camps: "This is great," or "This is bunk." The "bunk" camp has roughly four critiques, which I'll address here.?

Critique #1: (a) This abstract mindset stuff can't possibly account for the dirty details of everyday business — (b) which makes it useless.?

On (1a), absolutely. Mindset is one piece of a huge set of puzzles and challenges that have to be addressed in running a successful business anywhere in the world. Three brief blog posts are simply by necessity going to be somewhat abstract and vague. (And woe to the company that hires a consultant to write blog posts and do nothing else!) Any serious consulting engagement has to go way beyond mindset and into the organizational and operational nitty-gritty that real businesspeople face every day.?

As for (1b), for the best chance at success you need both the abstract and the specific. To the extent that the day-to-day work of running a company can be informed by high-level principles like mindset, it is likely to be more effective. Unless one thinks the findings themselves are inaccurate, which is a separate conversation.

Critique #2: (a) Current political and social circumstances can explain all the relevant mindset differences. (b) Societies change over time (a form of evidence for (2a)).

I can't do justice here to the volumes of statistically validated social science research that demonstrate the surprising stability of mindsets over time. For cultural issues generally, I'll refer you to the work of Geert Hofstede and his team. For U.S. and China, pick up any of the 19th-Century works by U.S. missionaries in China (my favorite is Smith's Chinese Characteristics. Or, better yet, read Lin Yutang's 1935 classic My Country and My People, and see how well it's held up over time.

Critique #3: Stereotypes may have some business use.

There's a terminological distinction in the field of intercultural communication between stereotyping and generalizing. Generalizing is the act of making statements about a group of people, realizing that there is variation within any population. Stereotyping is taking a perceived characteristic of an individual and claiming, on the basis of this, that all people "like this person" share this characteristic (and probably other negative characteristics too). I simply don't see the business value in this latter act. Generalizing, yes; stereotyping, no.

Critique #4: Don't be too easy on the Chinese: they could in fact be out to mess you up.

True. No businessperson should act without a duly critical stance toward people with possibly competing interests. What I find disheartening is the certainty with which Westerners often attribute certain behaviors to this or that "Chinese characteristic," which then often leads to broader, more negative generalizations, and ultimately to an unproductive, and ill-deserved, distrust.

There is no one best window through which to view the Chinese, or anyone. But the more possible windows we allow ourselves, the richer our set of cognitive tools for solving complex problems — intercultural and other.

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China Business. It Helps To Know The Culture. Part III. Stereotypes As Excess Baggage.

This is the third and final part of a three part series of posts by Jason Patent, a China market access consultant with years of on the ground experience and all sorts of degrees from top schools (including a Ph.D from Berkeley) that qualify him to discuss how Chinese culture is likely to impact your doing business with China. Jason's first post is here?and his second is here.

Here is his third:

Human beings stereotype. It's part of our wiring. There's no getting around it.

In China you will be dealing with your own stereotypes of Chinese people. You could either pretend they're not there and have them sink your business, or you can acknowledge them and re-frame them into more positive ways of thinking. It's up to you.

Here are 9 common stereotypes you're likely to have in whole or in part, and ways to re-frame them:

1. The Chinese are out to cheat me.

China has been through a lot of tough history, over thousands of years and even up to very recent times. Chinese people have had to make tough choices in a world of scarcity. This mentality has been passed down through the generations. No Chinese does anything a Westerner wouldn't do if fighting for survival.

The upshot: Cross your T’s and dot your I’s. Be prudent, not paranoid.

2. The Chinese think they're superior.

The Chinese are legitimately proud of their amazing cultural accomplishments. Think of the food, the monuments, the language, and on and on. Chinese give respect where it's due: to Westerners for their advanced technology and social institutions, and to themselves for what they've done.

The upshot: Allow yourself to admire what there is to admire, while keeping your cool.

3. The Chinese lie.?

People from every culture lie. What Westerners call “lying” in China is often just a more subtle form of communication than we're used to. China is what's known as a “high context” culture: information is assumed to be in the background — the context. The more you learn about the assumed context, the better you'll get at seeing the meaning behind the words.

The upshot: Get trained on Chinese communication style. Learn as much as you can about the Chinese mindset, so that you know what background assumptions people bring to the conversation.

4. The Chinese go back on their word.

Shaped for millennia by a fickle, resource-poor environment rife with natural disasters, the Chinese see the world as constantly in flux. Circumstances change, and it's foolish to set a plan in stone now for an imagined future, when it might not be a fit for the actual future. It's best to remain adaptable and flexible.

The upshot: Be ready for your counterparts to ask for changes to contracts. Understand that in China the contract is often seen as the beginning of a relationship, not a fixed definition of reality.

5. The Chinese are always stalling for time.?

Like any business counterpart anywhere in the world, the Chinese have strategies for getting what they want. A common one is to use home court to their advantage. It's easier on the Chinese if things take longer than it is on you.

Upshot: Be ready and set reasonable expectations that things probably aren't going to happen quickly.

6. The Chinese are stingy.?

The Chinese are thrifty. Again, over millennia the Chinese have often had to scrape together meager livings out of a hostile, overcrowded environment. Every resource is precious, and could disappear at a moment's notice if not carefully guarded.

The upshot: Negotiation is not viewed as a win–win proposition. Be thrifty with your resources too, and meet the Chinese on their own zero-sum terms.

7. The Chinese don't care about quality.?

Everyone cares about quality. But when it comes to priorities, sometimes it's more important to the Chinese to save some resources than to make something that fits Westerners' high standards. See above about precious resources.

The upshot: Be fastidious and unrelenting in your QC. Get feet on the street and keep them there.

8. The Chinese don't care about their environment.?

The world of the average Chinese person is relatively small. People are focused — narrowly, from a prosperous Western perspective — on day-to-day concerns like having enough to eat and a roof over their heads. It might be nice to have a cleaner environment, but for many Chinese that's a luxury.

The upshot: Instead of complaining about the awful air, imagine what it would be like if you didn’t get to leave it in a week or two.

9. The Chinese hate Westerners.

In fact Westerners are much admired in China. What Westerners perceive as “hatred” is usually more a vague sense of suspicion. Like everything else, this results from the thought habits of the past, especially the past century and a half, which saw Westerners exploit and mistreat China. All this means is that you have to earn their trust.

The upshot: Behave in a way that is worthy of trust, and trust will come. With time.

Categories can be useful. Reasoned, informed judgment can be useful. Stereotypes have zero business value. Get savvy about your own stereotypes and re-frame them. Not only will you feel better and get along better, but your business will do better.

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China Business. It Helps To Know The Culture. Part III. Stereotypes As Excess Baggage.

This is the third and final part of a three part series of posts by Jason Patent, a China market access consultant with years of on the ground experience and all sorts of degrees from top schools (including a Ph.D from Berkeley) that qualify him to discuss how Chinese culture is likely to impact your doing business with China. Jason's first post is here?and his second is here.

Here is his third:

Human beings stereotype. It's part of our wiring. There's no getting around it.

In China you will be dealing with your own stereotypes of Chinese people. You could either pretend they're not there and have them sink your business, or you can acknowledge them and re-frame them into more positive ways of thinking. It's up to you.

Here are 9 common stereotypes you're likely to have in whole or in part, and ways to re-frame them:

1. The Chinese are out to cheat me.

China has been through a lot of tough history, over thousands of years and even up to very recent times. Chinese people have had to make tough choices in a world of scarcity. This mentality has been passed down through the generations. No Chinese does anything a Westerner wouldn't do if fighting for survival.

The upshot: Cross your T’s and dot your I’s. Be prudent, not paranoid.

2. The Chinese think they're superior.

The Chinese are legitimately proud of their amazing cultural accomplishments. Think of the food, the monuments, the language, and on and on. Chinese give respect where it's due: to Westerners for their advanced technology and social institutions, and to themselves for what they've done.

The upshot: Allow yourself to admire what there is to admire, while keeping your cool.

3. The Chinese lie.?

People from every culture lie. What Westerners call “lying” in China is often just a more subtle form of communication than we're used to. China is what's known as a “high context” culture: information is assumed to be in the background — the context. The more you learn about the assumed context, the better you'll get at seeing the meaning behind the words.

The upshot: Get trained on Chinese communication style. Learn as much as you can about the Chinese mindset, so that you know what background assumptions people bring to the conversation.

4. The Chinese go back on their word.

Shaped for millennia by a fickle, resource-poor environment rife with natural disasters, the Chinese see the world as constantly in flux. Circumstances change, and it's foolish to set a plan in stone now for an imagined future, when it might not be a fit for the actual future. It's best to remain adaptable and flexible.

The upshot: Be ready for your counterparts to ask for changes to contracts. Understand that in China the contract is often seen as the beginning of a relationship, not a fixed definition of reality.

5. The Chinese are always stalling for time.?

Like any business counterpart anywhere in the world, the Chinese have strategies for getting what they want. A common one is to use home court to their advantage. It's easier on the Chinese if things take longer than it is on you.

Upshot: Be ready and set reasonable expectations that things probably aren't going to happen quickly.

6. The Chinese are stingy.?

The Chinese are thrifty. Again, over millennia the Chinese have often had to scrape together meager livings out of a hostile, overcrowded environment. Every resource is precious, and could disappear at a moment's notice if not carefully guarded.

The upshot: Negotiation is not viewed as a win–win proposition. Be thrifty with your resources too, and meet the Chinese on their own zero-sum terms.

7. The Chinese don't care about quality.?

Everyone cares about quality. But when it comes to priorities, sometimes it's more important to the Chinese to save some resources than to make something that fits Westerners' high standards. See above about precious resources.

The upshot: Be fastidious and unrelenting in your QC. Get feet on the street and keep them there.

8. The Chinese don't care about their environment.?

The world of the average Chinese person is relatively small. People are focused — narrowly, from a prosperous Western perspective — on day-to-day concerns like having enough to eat and a roof over their heads. It might be nice to have a cleaner environment, but for many Chinese that's a luxury.

The upshot: Instead of complaining about the awful air, imagine what it would be like if you didn’t get to leave it in a week or two.

9. The Chinese hate Westerners.

In fact Westerners are much admired in China. What Westerners perceive as “hatred” is usually more a vague sense of suspicion. Like everything else, this results from the thought habits of the past, especially the past century and a half, which saw Westerners exploit and mistreat China. All this means is that you have to earn their trust.

The upshot: Behave in a way that is worthy of trust, and trust will come. With time.

Categories can be useful. Reasoned, informed judgment can be useful. Stereotypes have zero business value. Get savvy about your own stereotypes and re-frame them. Not only will you feel better and get along better, but your business will do better.

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China Business. It Helps To Know The Culture.

A few months ago I spoke at a seminar out East at which?Jason Patent also spoke. Jason gave the single best talk I have ever seen/heard on the cultural differences between China and the United States as those differences relate to business. Based on that, I asked him to write some guest posts on China's business culture and this is the first in what will be a three part series.

Jason is currently Vice President, Communications & Marketing for Orchestrall, Inc., a China- focused market access firm with its U.S. offices in Philadelphia and offices throughout China (Hong Kong, Beijing, Shanghai, Suzhou, Dalian, and Xi'an to be exact). Jason has over two decades of experience with China, including over seven years living in China and he is fluent in Chinese. Much of what Jason does today for Orchestrall involves helping foreign companies in China improve their China marketing and communications. Jason has a Ph.D in Linguistics from Berkeley, an M.A. in East Asian Studies from Stanford, and an A.B. in East Asian Studies from Harvard.?Bottom line though is that he really really knows his stuff. ?

So without further ado, here is Jason's first post:

Imagine for a moment that you’re going to set up a lemonade stand in Midtown Manhattan one hot Saturday afternoon. You know it’s going to be a tough sell, because New Yorkers are tough customers, and you have a lot of competition. So you want to take every step you can to ensure success.?

Question: Would you neglect to bring, say, cups? Or a table? Or a pitcher? Of course not.

Why, then, do so many Western companies send their people to China without proper training in the Chinese mindset? Business is unpredictable wherever you go. Companies spend countless dollars on ROI studies and risk management, just for a vague sense of certainty. Yet one enormous risk factor, and threat to ROI, is staring them in the face: the possibility of investing precious dollars and hours in sending people to China unprepared to deal with the day-to-day muck of living and working in China.

In a recent report on failed expat assignments in China, executive coach Ed Britton wrote: “Western culture notices things if they are easy to see and measure. The effects of culture don’t translate easily to accounting records. But, start counting the number of expatriates who don’t complete their stay, and that number will go straight to the bottom line.”

One such example came to me through some colleagues with years of experience in China. They once came across an American executive whose entire, carefully planned, hard-fought-for China venture came crashing down for lack of mindset preparation.

The executive was an American businessman trying to hawk his wares in Southwest China. It was a major venture, and he felt prepared. After all, his firm had grabbed major contracts throughout the U.S. and Europe, and he was no neophyte when it came to doing the research, wrangling local support, and doing what he had to in order to succeed.

Investing significant resources in connecting with the right people, he managed to secure a personal meeting with the Governor and Vice Governor of one of the provinces in the region — no small feat. But he blew it. Despite all his business savvy and preparation, in one meeting — one meeting — he sent his China prospects down the tubes.

Here’s what happened. A take-charge guy, this American businessman knew what he wanted and never hesitated to share his thoughts with subordinates and colleagues. His direct style had been a major factor in his success. But in China it was disastrous. He began the meeting with the Governor and Vice Governor as if he were running it. After all, he had set it up; it was his show. They were there to hear what he had to say. Right? Wrong. Strike one.

Not long into the meeting, the businessman expressed some concerns about some problems he had encountered working with the provincial government. The Governor sought to reassure him, using a common Chinese term, fàngxīn, which in this context translates best as “don’t be worried.” Unfortunately, the interpreter used a different translation, appropriate to other contexts, but not to this one: “Take it easy.” Which might as well have been, “Relax, buddy, there’s no problem here.” One small misunderstanding led to another; tension increased. Strike two.

Feeling threatened and unsure of the situation, the businessman did what came naturally to him as an American: he dug in his heels. He restated his concerns with more vigor, laying the blame at his counterparts’ doorstep. The Governor, in turn, handled a clearly upset person the only way he knew how. Laughing nervously and trying to reassure the man, he used the same phrase he’d used before: “Don’t be worried.” But the American didn’t get it. Strike three.

The result? Inevitable, and predictable. A year’s worth of investment, preparation and research down the drain. His venture went nowhere.

This businessman was no Pollyanna. He was savvy enough to know the value of meeting with well-placed government officials, and to make the meeting happen. That’s already further along than 99 in 100 Western businesspeople in China. Yet it wasn’t enough.

What makes this story even more painful is how predictable the entire affair was to anyone with on-the-ground experience in China. It would have taken a minimal investment of time and money for this executive to be properly prepared.

Sadder still, stories like this play out every day in China. So very many opportunities are missed, and so very much time and money are wasted — and all for something completely predictable and avoidable.

Business is not just business, despite our American insistence to the contrary. The only way to succeed in China is with the curiosity to examine our own beliefs and practices, and the humility to see other ways of doing things as equally valid. And the good sense to spend a bit of time and money now to save, and make, much more down the line.

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