Work Culture of China

Prepared By:

Bhavin Agrawal(02)

Tunika Belani(05)

Malvi Bhatt(08)

Chintan Desai(15)

Drashti Kevatiya(23)

Part 1 : Overview and Geography

Overview of China

China remains a developing country its per capita income is still a fraction of that in advanced countries and its market reforms are incomplete. Official data shows that about 98.99 million people still lived below the national poverty line of RMB 2,300 per year at the end of 2012. With the second largest number of poor in the world after India, poverty reduction remains a fundamental challenge.

China’s sustained economic growth will make it the world’s largest economy by 2030. Its large and competent labor force, entrepreneurial culture, and massive infrastructure investments are making this growth possible. But there are also challenges which include maintaining social stability and dealing with environmental issues.

Area : 3,691,502 square miles (9,596,960 square kilometers)

Population : 1,298,847,624

Religions : Daoist (Taoist), Buddhist, Muslim 1%-2%, Christian 3%-4%

Climate : tropical in the south to subarctic in the north. In the west, the land consists mostly of mountains, high plateaus, and desert. The eastern regions are characterized by plains, deltas, and hills.

Region : Inner China and Outer China.

Dynamic : Developing country, keeping changing

Borders : Russia and Mongolia to the north, India to the southwest, and Myanmar, Laos, and Vietnam to the south.

Borders:- To the east, it borders the Yellow Sea, the South China Sea, and the East China Sea

Traditional culture of ChinaChinese tradition and culture includes Beijing Opera, Tea

Ceremony, Tai Chi, Calligraphy & Painting, Folk Entertainment, Courtyards, Festivals, Wisdom and more.

Buddhism is the dominant religion in China.

Festivals :

Chinese New Year/Spring Festival

Qing Ming Festival

Dragon Boat Festival

Mid-Autumn Moon Festival

October 1st - Founding of the

People's Republic

Part-2 : GDP and Major Industries

GDP Of China China has leapfrogged Japan to become the world's second-largest economy,

a title Japan has held for more than 40 years.

For the total global stock market value, the USA accounts for over 30%, China 7.38%,Japan 7.05%

GDP contribution of China

Country Rank: #2

GDP : 9.24 trillion USD (As of 2013)

Sector GDP in % (2013)

Industrial 43.9%

Agriculture 10 %

Service 46.1 %

Major Industries of China

Power Industry

ManufacturingIndustry

Automobile Industry

Power Industry

Of all Chinese industries, the Thermal, Hydro and Nuclear power industries have developed the most rapidly.

Presently, China is the world's second in the installed capacity of generators and generated electricity.

Main power grids now cover all cities and most rural areas of China.

The sufficient power supply in China is mainly because of the rapid growth of the fuel coal output.

Manufacturing IndustryChina's manufacturing industry can provide complete sets of large

advanced equipment, including power generating equipment such as nuclear power sets, ultra-high voltage direct-current transmission and transformation equipment, fertilizer and petro-chemical equipment, transport equipment, and new paper-making and textile machinery.

The main reasons for growing this industry is easily availability of labor, technology, less government laws, less production cost etc.

Electro-mechanical products ranked first in the export volume of China for eight years in succession from 2005 to 2013.

Automobile IndustryIn the 1990s, the automobile industry developed as one of the

country's key industries. The output of automobiles increased from 1.45 million in 1995 to 3.25 million in 2002.

The automotive industry in China has been the largest in the world measured by automobile unit production since 2008.

Of the automobiles produced, 44.3% were local brands (including BYD, Dongfeng Motor, FAW Group, SAIC Motor, Lifan, Chang'an (Chana), Geely, Chery, Great Wall and Roewe ), and the rest were produced by joint ventures with foreign car makers such as Volkswagen, General Motors, Hyundai, Nissan, Honda, Toyota, Mitsubishi etc.

China ranks No.1 in both auto manufacturing and auto selling for 4 years.

MAJOR INDUSTRIAL AREA

China - Singapore Suzhou Industrial Park in Shanghai

Tianjin Economic & Technological Development Area (TEDA) in Beijing

Bonded Logistics Zone (BLZ) in Shanghai

Special Economic Zone (SEZ) i.e. Shenzhen, Zhuhai, Shantou, Xiamen, Hainan Island, and Shanghai Pudong, all in the coastal area

Top Major Companies in ChinaIndustry Companies

Power

China datong Corportion

China Guodian Corporation

China Huadion Corporation

China Huanung Corporation

Automobile

Dongfeng Motors

First Automobile Works

Beijing Automobile Group

Brilliance China Auto

Manufacturing

361 Degrees -family fahion

Anta Sports

Li Ning Company

- Chiaphua Components Group

Major Exports of ChinaProducts Exports ( in %)

Electronic Equipments 25.4 %

Machinery 17.3 %

Knit or crochet clothing and accessories 4.4 %

Furniture, lighting , signs and prefabricated buildings 3.9 %

Optical, technical and medical apparatus 3.4 %

Non-knit and non-crochet clothing and accessories 3.1 %

Plastics 2.8%

Vehicles excluding trains and streetcars 2.7 %

Iron or steel articles 2.6 %

Footwear 2.3 %

Some of the industries supporting these exports, such as manufacturing electronic equipment and producing clothing, are labor intensive. This may explain why China’s unemployment rate is 4.1 per cent — compared to the estimated 9 per cent global average.

Part-3 : Work Culture

Regional Culture Differences in China

East part of China and the coastal cities:

focusing on written contract, more internationalized.

North-east of China:

focusing on oral contract

The West China:

focusing on commercial practice

Working Hours and Off daysThe working hours of Chinese companies may be from 08:00 to

17:00, 08:30 to 17:30 or 09:00 to 18:00.

The official organizations (government offices) usually work from 09:00 to 17:00 with a one-hour siesta.

44-hour normal working week (maximum of 48 hours)

150% overtime payment with reference to the normal hourly pay

Do not work on Saturdays and Sundays.

Off Days

Business DressMen : Jackets for meetings

and Dinner

Women : Business Suits,

low heels to avoid being

taller than the host

Avoid too much of perfume.

Conversation (Non Verbal Communication)

When talking to each other, Chinese people stand very close. The main reason is politeness and trust.

Less usage of hand gestures

While having a conflict, the important thing to remember is to not to get upset or angry because according to them only low or uneducated people cannot control their emotions.

Conversation (Verbal Communication)

Strong hand shakes are avoided

Avoid politics

Try to avoid saying “no” when answering questions instead the say “I’ll look into that.”

It is considered disrespectful to stare into another person's eyes.

Chinese Meetings EtiquetteSeniority is very important to the Chinese.

Handshakes are the most common form of greeting.

Look towards the ground when greeting someone.

People enter the meeting room in hierarchical order.

Sitting positions in a meeting room is accordingly to rank, importance and seniority.

Series of meetings, rather than just one

Chinese Meetings (conti..)Unlike western-meetings, Chinese meetings are about

building relationship, exchanging information

Address the other party by his designation eg. Chairman XX , Director XX or Manager XX.

Chinese Meetings(Conti…)

Appointment in advance preferably in writing is necessary for any business meeting.

Direct contact with the host company is required otherwise it would be better to have intermediary.

Punctuality is considered as virtue so arrive for meeting before time.

It would be necessary to send the agenda in advance.

Business MealThere is no business talk in China without at least one trip to a

grand restaurant.

Elaborated and designated seating positions for the host and the guest with seniority protocol.

Meals are invariably associated with liquor.

More you drink, more respect you earn as Chinese believe that alcohol gets rid of all communication barriers .

The Business cardCard are printed in Chinese on the reverse-side.

Business Cards(conti…)Cards are held in both the hands when exchanging and

scrutinized.

When giving out name cards or brochures, make sure you start with the most senior person before moving down the line.

Conclusion

China always have their own unique business culture and etiquette.

“Guanxi” is a very important characteristic of the Chinese business culture. It means relationships.

In prospective of their culture or we can said that, now-a-day’s their culture is very much related with the innovating new technology and increase the productive capacity of china.