China’s Traditional and Modern Business Culture
China’s traditional business culture
Confucian thought has had a profound influence on the way Chinese people do business. For example, “etiquette,” the basic element of Confucianism, originated from the ritual worship of, and sacrifice to, the ancestors. Later it developed into a set of moral rules based on kinship and hierarchy, and has been weaved into five interpersonal relations: those between ruler and subject, father and son, husband and wife, brothers and friends. Not only did it play a role in solidifying patriarchal-feudal relationship, but it is deeply rooted in the living habits and customs of today and has become a force which regulates social interactions and behaviors. Since ancient times, the principle that “an even temper brings wealth” has been an essential part of Confucianism. According to the Analects of Confucius, “Wealth and rank attained through immoral means are as empty to me as floating clouds.” In other words, people should take into account both monetary gains and ethical guidelines at the same time, and that a good economic order can only be maintained by moral rules. These are the fundamental values for China’s traditional business culture.
The renowned Chinese historian Sima Qian (145-86 B.C.) once said, “Jostling and joyous, the whole world comes for profit.” There is no reason to blame people for earning money; however, such money should be earned in a proper, reasonable and legal way. Therefore, it can be concluded that traditional business culture means “working hard and persevering; showing respect to Confucianism; emphasizing daily practices; making money in a legal and honest manner; and being socially responsible.”
Chinese people have a long history of doing business, and there is a long list of business experts, including: Zigong, Fan Li, and Bai Gui, all of whom were prestigious businessmen during pre-Qin Dynasty (before 221 B.C.); Zhang Zhidong and Zhang Jian, pioneering traders in modem times; and Li Ka-shing, one of the contemporary outstanding merchants who have shaped and developed the country’s new business culture. Through their efforts and activities, there was gradually born a Chinese-style business strategy. The key elements of this strategy are:
• Choosing the right location;
• Buying and selling goods at the right time;
• Making small but quick profits;
• Earning money with integrity;
• Recognizing the whole through the obser-vation of parts;
• Using unexpected plans and strategies;
• Treating a talented person with respect and trust;
• Thinking about the future and long-term benefits; and
• Making new and more friends.
This business philosophy has become the mainstream business culture of China. Today, entrepreneurs are still learning business lessons from their ancestors.
China’s modern business culture
Generally speaking, China’s modern business culture can be summarized as follows: quality-based, focusing on integrity and trust, operating in a lawful way and pursuing win-win scenarios. Its core values lie in dedication, integrity, friendliness and other moral codes of business.
China’s business culture includes: international business concepts, advanced business equipment, effective management and marketing strategies, the pursuit of individual freedom and a people-oriented approach so as to address consumers’ physical and spiritual needs. People are encouraged to follow business principles and foster their own moral values. Meanwhile, a modern Chinese business culture is being established and enhanced; corporate behaviors are being regulated and standardized; local enterprises are accepting international economic rules and standards.
Business is not only a means to profit, but a window to showcase improvements in society and a channel through which to spread civilization. Therefore, doing business with integrity and mutual trust is the symbol of a civilized society and a must for future success. Efforts are being made to enhance the strength of China’s traditional business culture, break down the barriers that hamper the market economy and work efficiency, build an advanced business culture system in order to establish a good business environment for people at home and abroad to carry out business activities.
An edited excerpt from When in China: A Guide to Chinese Business Culture published by Sinolingua Co. Ltd.