1. The Setting: Social

2. Mythbusters Trivia What is one thing almost any decent hotel in China offers? a) Billiards room b) Putt-putt course c) Prostitutes d) Movie theater

3. What is one thing almost any decent hotel in China offers? Answer: C) Prostitutes A Westerner may think of the Chinese as very “conservative”, but… Polygamy was a common practice in previous eras and can still be found in isolated rural areas Today, the practice of having a mistress or “minor wife” is common

4. Mythbusters Trivia True or false? A Westerner should not drink with the Chinese at a business dinner, as drinking is considered deviant.

5. A Westerner should not drink with the Chinese at a business dinner? Answer: False One should participate in the strong drinking culture of China in order to foster relationships. (Guanxi) Generally, the Chinese regard with suspicion anyone who does not participate in the inevitable drinking that takes place during almost all business dinners. It is at these kinds of social occasions that most negotiating breakthroughs are made. Toasting, usually with beer, wine or Chinese white liquors, is an important part of Chinese business etiquette.

6. Hofstede Analysis PDI: Power Distance IDV: Individualism MAS: Masculinity UAI: uncertainty avoidance LTO: long term orientation Versus

7. Hofstede Analysis Long-term Orientation is the highest-ranking factor, which is true for all Asian cultures. Chinese rank lower than any other Asian country in Individualism.  high level of emphasis on a Collectivist society by the Communist rule. The low Individualism ranking is manifest in a close and committed member 'group', be that a family, extended family, or extended relationships. Loyalty in a collectivist culture is paramount. The society fosters strong relationships where everyone takes responsibility for fellow members of their group.

8. Hofstede Analysis Significantly higher Power Distance ranking of 80 (Far East Asian countries' average is 60 and the world average is 55) Indicates a high level of inequality of power and wealth within the society. This condition is not necessarily forced upon the population, but rather accepted by the Chinese as their cultural heritage.

9. Chinese Social Classes (after 1949)

10. Role of Women in China Traditionally: 3 Confucian Obediences; Patriarchal Society Implications of the One Child Policy Communism: females have equal status with men (in theory) Today: nearly all women in China work, many doing the same kinds of jobs as men; more inequality in rural areas Labour force participation rate of women: 45% in 2000. Still fierce competition, discrimination in educational institutions, dual responsibilities, and prejudice.

11. Makeup of Population Homogenous society Han Chinese: 91.9% of pop. (2006) The only significant immigration to China has been by the overseas Chinese, who in the years since 1949 have been offered various enticements to return to their homeland

12. Belief Systems Officially Atheist Some religious practice is acceptable in China; however, the government sets rigid limits. Chinese culture closely associated with Confucianism, Taoism and to a lesser extent, Buddhism Tend to believe in luck, fate and that one has little control over events “Regardless of where they live or how rich they are, the Chinese share an abiding belief in hard work, strong family ties, frugality and education.”

13. Chinese Culture: Implications for Business High context culture: choose words carefully; complex meanings Importance of family: many firms controlled by one family and frequently the patriarch of the family Family (not the individual) is the basic unit of social organization

14. Guanxi: “relationships/connections” Guanxi: a network of contacts, which an individual can call upon when something needs to be done, and through which he or she can exert influence on behalf of another. China: people exist only in relationship to others Build relationships before conducting business Less concerned with what is written in a contract vs. the actions that people take to meet their obligations

15. The Chinese Concept of Face Face is an essential component of the Chinese national psyche. “Having face”: having a high status in the eyes of one's peers; is a mark of personal dignity. The Chinese are acutely sensitive to gaining and maintaining face in all aspects of social and business life. Face is a prized commodity which can be given, lost, taken away or earned. Causing someone to lose face could ruin business prospects