Business Culture in China

Differences Between Western and Chinese Working Culture

1. Roles and Responsibilities

In a Western professional setting, the jobs and responsibilities of every employee are well defined. This is generally not the case in Chinese workplaces, as roles often extend beyond the outlined job description and depend on management’s instruction.

A certain level of ambiguity regarding employees’ roles and responsibilities is tolerated because there is a collective mentality that everyone in the workplace is united based on a common cause. As such, it is expected that everyone will endeavor to carry out any necessary duties, regardless of whether or not they are within their expertise or scope of work.

2. Working Hours

Although Compulsory overtime is not common in China, many employees want to stand out from the crowd and be seen as hard workers amongst their peers. Therefore, it has been common for employees to stay for unpaid overtime to show their dedication.

The culture of working long hours was previously widespread amongst numerous technology companies in China, with the term “996” representing the scheduled hours between 9 am and 9 pm, 6 days a week. While employees under Chinese labor laws should only be required to work for no more than 8 hours a day, without overtime pay, 996 was not in line with regulations and affected the well-being of employees. As of August 2021, the Chinese government officially ruled 996 working schedules to be illegal, protecting workers’ rights to rest.

3. Punctuality

In Western workplaces, tardiness can be tolerated so long as it does not become a regular occurrence, and many workplaces offer a great deal of flexibility in this regard. In China, punctuality is reflective of one’s commitment to the job. Some companies enforce a penalty system that deducts a small amount from an employee’s wage each time they are late.

4. Holidays

Whereas public holidays in most countries are set out on specific days, Chinese public holidays are spread out among different dates each year based on the Chinese Lunar Calendar.

For most, the allocated holidays are when they are able to return to their hometown or travel around. As such, it is best to avoid interfering with the lives of colleagues and clients during holidays unless absolutely necessary. It is best to arrange meetings and business trips to ensure they do not overlap with the holidays.

Additionally, for some public holidays, such as Chinese New Year or the national holiday referred to as Golden Week, workers may be required to work make-up days for extra time off, which will typically occur on a weekend.

5. Understanding the Hierarchy

In Western culture, asking questions when faced with uncertainties and challenges is a standard practice. Employees are expected to show initiative in asking questions, as this shows that they seek to understand a particular issue better. Moreover, even challenging questions are encouraged as long as they do not appear disrespectful to others.

Due to the hierarchical nature of the work environment in China, employees are expected to follow instructions and not question those in superior positions (see Santander Trade). The concept of “saving face” is strictly observed, which often restricts open discussions where employees can voice their ideas and opinions. See Global Business Culture for further context on saving face in Chinese business culture. Most of the time, conclusions made by a manager or boss are final.

6. Relationships and the Principle of Guanxi (关系)

The business culture in China emphasizes the importance of personal trust and strong relationship building, referred to as Guanxi (关系). In a corporate relationship, a business partner will voluntarily offer to provide favors with the expectation that you will reciprocate later on. This culture of reciprocity is interconnected with the concept of guanxi, signifying deep and lasting relationships.

Guanxi is the network or connections that can be utilized to create business opportunities and deals. It plays a huge role in business interactions in China and is often necessary for creating opportunities that would not have been available otherwise.

7. How are Meetings Started and Concluded?

In Chinese business culture, when you arrive at the meeting, you are expected to greet everyone in the room, regardless of how many people there are. Additionally, before discussing business matters, participants are used to having a few moments for social conversation.

Negotiations from the Chinese point of view are made to build trust and harmony between the parties involved, and relationships form a large part of the business (as mentioned in the previous section). During the meeting, it is common for the parties to provide in-depth information about their companies and the context of the negotiations.  Usually, final deals are reached in casual settings such as bars or restaurants and not in formal business meetings. This interpersonal style is preferred over contract-based negotiations.

The Chinese prefer to maintain long-term relationships through ongoing correspondence rather than efficiently carrying out short-term negotiations and deals.

8. Employee-Manager Relationships

Chinese companies adhere to a strict hierarchical system of operations, as confirmed by China Expat Society. The system has many levels of leadership, and seniority plays a big role in the employment relationship.

Employees follow a very formal procedure when dealing with superiors higher than them. To illustrate this, when employees report to their managers, they often address their managers formally, regardless of whether they are with other business partners.

Chinese employees usually do not talk before their boss speaks to show respect. Asking permission to talk before their boss does is common practice. In a meeting with a business delegation, the leader of the Chinese team usually approaches the boss of the other party first, before introducing themselves to the rest of the team.