Although modern times are catching up quickly within the cities of China, understanding the roots of this ancient and complex culture is essential when doing business there. In part II of 'doing business in China' we take a closer look at some of the cultural nuances your expats in China need to be aware of.

Understanding China's history is essential to comprehend the Chinese

When Dutch Jenny van Baden visited China for a holiday from her expat location in Taiwan she was struck by the fascinating developments in the country. "When you are out of Shanghai for one week, a new building or highway might have popped up in front of your window when you return," she says.

Although modern times are catching up quickly within the cities of China, "understanding their history is essential to comprehend the Chinese and the way they respond to things." says van Baden, who works for ASML in Shanghai.

Hierarchy in management culture

Take for instance hierarchy. Due to Confucianism, Chinese have a strong devotion to their hierarchical system. Everyone has a social rank in the Chinese "management" culture, and all are expected to know where they fit into the hierarchy and to behave accordingly.

There are diverse manners in which hierarchy is continually reaffirmed in Chinese management culture. For example, hierarchy is very clear when entering a business meeting with a group. The highest-ranking person should lead the group, and the most senior member of the Chinese and foreign team should head the discussion. If other members of the group interfere, the Chinese people present might be shocked.

Furthermore hierarchy also determines introductions in meetings and seating arrangements, which makes it very important for you to find out where your counterparts fit into his or her hierarchy.

Likewise you need to understand your position within your hierarchy and your status relative to your Chinese counterparts.

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