Foreign Business in China Has Term Paper

Download this Term Paper in word format (.doc)

Note: Sample below may appear distorted but all corresponding word document files contain proper formatting

Excerpt from Term Paper:


Wiles (2003) note ways in which Chinese practices of technical communication are affecting foreign businesses operating in China and some of the Western methods that China has to learn to be effective. Specifically, Wiley notes how Western companies have developed single-souring skills that the Chinese will have to adopt to be successful in technical communication. Chinese culture is a high-context culture in which information is more tacit and less explicit, and Chinese culture therefore places less focus on the user. The explicit nature of Western communication works in the Chinese context because it is based on making the user understand, and the Chinese will have to adopt this same approach in order to trade with the West, where the user wants to be the center of attention and wants to be informed directly.

A report by Anthony (2003) also suggests that China's business culture is being changed by foreign involvement: "Company by company, employee by employee, they are changing the way China does business" (para. 5). For one thing, Chinese companies are being developed to compete with some Western companies and are being create as private entities and not as state-owned enterprises. The effect of Western companies in China is to show people a different way of living. Also, the American mode of management emphasizes the worth and importance of the individual and the ideas of democracy and freedom, and analysts see these values having an impact on workers inside China.

Bates (2005) notes how Chinese practices favoring Chinese firms and using protectionist and predatory practices to do so have affected Western firms. Western firms are hit by higher tariffs and other payments in order to export goods to China or to manufacture goods in China and then export them back to the West. The Chinese culture is seen as a barrier that has not been fully addressed or much affected by pressures such as those from the U.S. government, which has not much to correct the situation.

Wolff (2004) notes the growing number of foreign laboratories I China and how such entities have been attracted with the growing emergence of the Chinese consumer. Companies bringing new products into China have had to provide more support to customers on how to use or maintain the product. Many of these laboratories have been established in compliance with an agreement reached with the Chinese to do so as part of any entry into the Chinese market. In some cases, companies have to localize their products, such as when softer programs have to made compatible with Mandarin. Social practices have also changed the way some game manufacturers treat their products as when one company "noted that, unlike Western users who play games on their own computers, PRC cell users play group games over the Internet, with many thousands of users online simultaneously. This company realized that such traffic required a totally new approach to allocation of server time. Insights like this clearly began to transform tactical support into a strategic new product and service direction for businesses" (Wolff, 2004, para. 6).

Dessler (2006) cites some of the ways Western businesses change when entering China in order to fit into the Chinese business climate. First, companies still have to take account of central planning by the Chinese government, such as a government-run mandatory personnel file system, a single union, and restrictions on city migration. Human resource management in China is therefore different in spite of changes that have been made. Another issue is how the employer will confront cultural differences, as Dessler notes:

For example, in a society that emphasizes saving face, performance feedback needs to be more oblique than in the West. Many Chinese still think of their employers more as family than as employers, and may expect employers to provide for their social welfare (Purdum, 2005). Many Chinese candidates are reluctant to sell themselves during an interview because of a strong cultural bias against boasting (para. 4).

What is taking place is described by Yu (2002) as a blending of cultural business styles, which is the way multinational corporations have long been behaving in overseas venues. New entrants into China experience a clash in business cultures that they see as forcing them to choose between different styles of doing business, but Yu notes that one solution is to blend business styles into something acceptable to both sides. This is a good middle ground when each set of practices serves a discrete function, as noted by a paper that "categorizes strategies for overcoming the uncertainties of operating globally as either 'offensive,' meaning they help to localize the company to the foreign environment, or 'defensive,' meaning they protect corporate interests and reduce uncertainty and complexity" Yu, 2002, para. 2).


Anthony, T. (2003, December 12). U.S. companies changes Chinese lives - and corporate culture, too. AP Worldstream. Retrieved August 11, 2007 at

Bates, C. (2005, July 1). Leveling the international playing field: while some foreign trade practices are simply unfair, recognizing that is one thing; doing something about it is another. American Machinist. Retrieved July 13, 2007 at

Bodeen, C. (2006, January 25). Google Launches Search Engine in China. AP Online. Retrieved August 13, 2007 at

China Compulsory Certification (CCC Mark) (2006).

Dessler, G. (2006, September 22). Expanding into China? What foreign employers should know about human resource management in China today. SAM Advanced Management Journal. Retrieved August 14, 2007 at

Ghose, a.K. (2000). Trade Liberalization, Employment and Global Inequality. International Labour Review, 139 (3), p. 281.

Goldstein, C. (2001, December 8). Wal-Mart in China. The Nation, retrieved April 22, 2005 at

Gooley, T.B. (2003, February 1). China: reforms may take awhile: China pledged to the WTO that it would loosen restrictions on foreign companies doing business there. But change is coming slowly to transportation and distribution services.,%20Co.%29%22%5DLogistics Management.

Retrieved August 12, 2007 at

Habib, M. & Zurawicki, L. (2002). Corruption and Foreign Direct Investment. Journal of International Business Studies, 33(2), p. 291.

Pomfret, J. (1998, December 19). China Making Life Tougher for Foreign Firms. The Washington Post. Retrieved August 12, 2007 at

Wiles, D. (2003, August 1). Single sourcing and Chinese culture: a perspective on skills development within Western organizations and the People's Republic of China. Technical Communication. Retrieved August 13, 2007 at

Wolff, M.F. (2004, January 1). Foreign R&D labs in China see missions expand, practices advance. Management. Retrieved August 12, 2007 at

Yu, L. (2002). Blending cultural business styles. MIT Sloan Management Review 44(1), 12-13.

Zhang, M. (2002). Information Technology Policy-Making in the People's Republic of China. International Journal of Public Administration, 25 (5), p. 693.[continue]

Cite This Term Paper:

"Foreign Business In China Has" (2007, August 14) Retrieved December 4, 2016, from

"Foreign Business In China Has" 14 August 2007. Web.4 December. 2016. <>

"Foreign Business In China Has", 14 August 2007, Accessed.4 December. 2016,

Other Documents Pertaining To This Topic

  • Business in China Companies Have

    Another factor that must be taken into consideration is represented by the business etiquette in China. Business etiquette in this country is significantly different than that of Western countries, but it is similar to other Asian countries. The analysis of business etiquette is based on the cultural dimensions that characterize the Chinese population. Same as in the case of other Asian cultures, China has a high long-term orientation, which means

  • Business Ethics China and Mexico This Work

    Business Ethics: China and Mexico This work in writing will discuss the business ethics in view of countries that are foreign to one another and specifically the countries of Russia and China and Mexico. This work will contrast and compare the business ethics of these two countries toward providing a contribution to the global ethical perspective. The work of Ma (2010) states that business ethics "refer to the moral principles

  • China Management as China s Economy

    State Domination and Financial Markets The Chinese government has characterized its involvement in economic development as "serving rather than supervising the private economy" since 2008 (Xinhua, 2009). With this shift in focus a number of changes to Chinese management can be expected. The paternalistic approach will remain, as it is part of Chinese culture, but there will be further Western influences, particularly with respect to the desire outcomes of management behavior. In

  • China s Developing Accounting System China

    For example, there are several suspicions regarding the foreign companies audited by Chinese authorized auditors, given their reduced number and lack of experience. Another example regards China Life Insurance, which was listed on the Hong Kong and New York stock exchanges, raising approximately $3.4 billion. The company's future evolution was not as successful, since the following year a routine audit on the company revealed that it had uncovered $652

  • China the Dilemma of a Ethical Practices

    China The Dilemma of a Ethical Practices and Profitability of Trading with China China continues to have one of the world's strongest and most resilient economies, achieving a 10.3% Gross Domestic Product (GDP) growth rate in 2010 compared to the world average of 4.2% and the United States' 2.9%. U.S. Lawmakers continue to question the $4M in foreign aid that Congressional budgets are requesting for one of the fastest growing economies globally

  • Business Kea Fashion Ltd a National New

    Business Kea Fashion Ltd., a national New Zealand garment chain, has come to an important point in its development: the decision to internationalize its business and to enter a foreign market. In general, and it is also the case here, such a decision can have a double goal. One would be to find sources of production that would decrease production costs. This is usually done by extending the company's activity in

  • China Import China s Importation Documentation Requirements Procedures...

    China Import China's Importation Documentation Requirements, Procedures, Programs, and Policies: An Overview Every business endeavor has certain legal and procedural requirements that must be known and followed in order for the endeavor to be both successful and viable in the long-term. Embarking on any business or trade venture without first ascertaining the legal requirements and bureaucratic procedure is setting the venture up for outright and immediate failure at the worst, and an

Read Full Term Paper
Copyright 2016 . All Rights Reserved