China's business philosophy

Chinese business etiquette is closely related to national culture and its history.

In this article, we will try to explain the philosophical foundation of Chinese business etiquette.

It is necessary to better understand your Chinese partners and assess their behavior.

Confucianism and Taoism are the two major philosophical sects in China. They have influenced China's business practices for centuries and are still influential and still of great significance.

Interpersonal relationship is the main core of Confucianism. Now it has a great impact on the Chinese mindset and social behavior.

• One of the most important aspects of Confucianism is mutual respect and interpersonal trust in society.
• There are two main doctrines that have an impact on business negotiations: hierarchical social relationships and the concept of saving face.
• Confucianism defines social hierarchical relationships as follows:

Managers and followers, fathers and sons, couples, old people and children, teachers and students. The first one protects and guides while others respect and follow. In Confucianism, obedience and observance of these rules are seen as the path of social harmony.

In China, we can note that many companies and management systems still have hierarchical doctrines.

In addition, in business negotiations, it is important to identify key people or managers in your company who have the same status as key Chinese characters or managers.

• There is also a concept of saving face in Confucianism.
• This concept is needed to create harmony in social relationships.
• There is an example of the impact of Chinese culture on pickpockets.

Suppliers from China do not refuse to cut prices. Bargaining about prices is also part of Chinese culture. But they will still say "no" to the price of your goods in order to save your face and control the negotiation process.

Understanding China's business philosophy will help you achieve your business goals and help you understand the behavior of your business partners. However, this does not mean that you can avoid misunderstandings, it will only help you better analyze your partners and gain a stronger position in the negotiations.

The famous Chinese strategist and philosopher Sun Zi [author of "The Art of War"] said:

"Understanding the enemy, you don't have to worry about the outcome of 100 battles."

Of course, your Chinese partner is not a real enemy. But it's best to always realize that China's way of doing business is still completely different from Europe. China needs to learn.

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Orignal From: China's business philosophy