Lost in translationChina gilt als Schwellenland, wird aber zunehmend zu einer wirtschaftlichen

Großmacht und für Investoren immer wichtiger. Vicki SuSSenS befasst sich mit

aktuellen Entwicklungen und kulturellen Besonderheiten, die beim Ausbau von

Geschäftsbeziehungen zu China zu beachten sind.

Chinese youth: moving towards a bright future?

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Eric X. Li was born at the height of Mao Zedong’s Cul-tural Revolution (1966–76). Growing up, he learned that all societies progress natural-

ly through feudalism, capitalism, so-cialism and, finally, to communism. To reach this paradise on earth, however, they must fight capitalism. “That grand story was a bestseller,” Li told a TED-talk audience (see also pp. 22–25) in 2013.

Then came the break up of com-munism in Eastern Europe in the 1990s. “Disillusioned by the failed religion of my youth, I went to Amer-ica,” the venture capitalist and po-litical scientist from Shanghai tells his audience. There, he was taught another “grand story”: that all so-cieties progress naturally towards democracy and free markets, but to get there, they must fight evil. The audience starts to laugh.

Li laughs, too, but then he says: “Let us stop telling people there’s only one way to govern ourselves. It is wrong.” In the past 30 years, Western leaders have tirelessly pro-moted their agenda of free markets and democracy, he says. But China did not “buy the story”.

Instead, it developed its mixed model of communism and a market economy — and went from being one

agenda [E(dZendE] Programm; hier: Konzeptaudience [(O:diEns] Publikum, Zuhörer(innen)grand [grÄnd] großartig, tolltirelessly [(taIElEsli] unermüdlichventure capitalist Risikokapitalgeber(in) [(ventSE )kÄpIt&lIst]

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CHINA INTERCULTURAL COMMUNICATION

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of the poorest agricultural countries in the world to its second-largest economy. Since 1978, China’s GDP has increased tenfold and some 650 million people have been lifted out of poverty. “Eighty per cent of the entire world’s poverty alleviation happened in China. In other words, all the new and old democracies put together amounted to a mere fraction of what a single, one-party state did without voting,” he said.

Li says his business is growing in leaps and bounds. Entrepreneurs are starting businesses every day in Chi-na, and the middle class is expanding at a speed unseen before in history. “According to the [US] grand story, none of this should have been hap-pening,” he says.

China’s progress is indeed impres-sive. In 1978, it began economic re-forms to introduce market principles. Since then, it has developed stock

markets, modernized its banking system, opened up to foreign trade and investment, and increased the autonomy of state enterprises. It has focused on building the manpower it needs for its economy’s future de-velopment by investing heavily in education, science and technology, health and welfare, and infrastruc-ture. A network of highways and high-speed trains now connects huge areas of China, linking its various economic zones. China has the third- largest railway network worldwide and already has more high-speed tracks than the rest of the world combined.

At the same time, the state has promoted business activity and the development of industry clusters in regional economies. Beijing, Shang-hai and Shenzhen, in Guangdong, for example, aim to become global cen-tres of biotechnology. Together, their industry parks now include more

than 5,000 small enterprises, which are supported by tax incentives and state-funded academic research. De-velopments like these mean that mul-tinationals now see China not only as a source of cheap labour and a growing consumer market, but also

academic research wissenschaftliche [ÄkE)demIk ri(s§:tS] Forschungalleviation [E)li:vi(eIS&n] Minderung; hier: AbbauBeijing [)beI(dZIN] Pekingentrepreneur Unternehmer(in) [)QntrEprE(n§:] GDP (gross domestic BIP (Bruttoinlands- product) [)dZi: di: (pi:] produkt)incentive [In(sentIv] Anreizindustry cluster Industriezentrum [)IndEstri (klVstE] in leaps and bounds rasant, sehr schnell [In )li:ps En (baUndz] manpower [(mÄn)paUE] Arbeitskräftemere fraction: a ~ nur ein Bruchteil [)mIE (frÄkS&n] network [(netw§:k] Netzpoverty [(pQvEti] Armutstate-funded staatlich finanziert [)steIt (fVndId] stock market Aktienbörse [(stQk )mA:kIt] tenfold [(tenfEUld] zehnfachwelfare [(welfeE] Sozialwesen

Old ways, modern city: tai chi in Shanghai

“Let us stop telling people there’s only one way to govern ourselves. It is wrong” Eric X. Li, venture capitalist and political scientist from Shanghai, China

INTERCULTURAL COMMUNICATION CHINA

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as a centre of innovation. The coun-try faces serious challenges, however, including a rapidly ageing population — in part, the result of the state’s one-child policy — government and business corruption, and pollution. Also, its GDP growth dropped from 10.4 per cent in 2010 to 7.7 per cent in 2013, although it has defied

predictions of imminent collapse. According to David Lee, general manager in Hong Kong of the Bos-ton Consulting Group (BCG), the slowdown comes in part from the government’s plan to turn the largely investment-driven economy to one based on consumption, supported by the growing middle class and a more developed social safety net. Well- developed infrastructure, continuing urbanization and the rising middle class will continue to make China at-tractive to foreign investors, says Lee.

challenge [(tSÄlIndZ] Herausforderungconsumption Konsum [kEn(sVmpS&n]defy sth. [di(faI] etw. trotzenpollution [pE(lu:S&n] (Umwelt-)Verschmutzungprediction [pri(dIkS&n] Prognoseslowdown [(slEUdaUn] (Konjunktur-)

Abschwächungurbanization Verstädterung [)§:bEnaI(zeIS&n] Source: CIA World Factbook (https://www.cia.gov/

library/publications/the-world-factbook/geos/ch.html )

China: Fast facts

Official name:People’s Republic of ChinaGovernment:Communist stateCapital:Beijing 15.6 million (2011)Chief of state:President Xi JinpingPopulation: 1.36 billion (July 2014 est.)GDP (at purchasing power parity): $13.4 trillion (2013 est.)GDP growth rate:7.7% (2013 est.)Unemployment:4.1% (2013 est.)Main trading partners:US, Japan, South Korea, Taiwan, Australia, Germany (2013 est.)Main religions: No religion: 52.2% (China is offi-cially atheist); Buddhist 18.2%, Christian 5.1%, Muslim 1.8%, folk religion 21.9% (2010 est.)

Beijing [)beI(dZIN] Pekingbillion [(bIljEn] Milliarde(n)est. (estimate) [(estImEt] Schätzungfolk religion [(fEUk ri)lIdZEn] VolksreligionGDP (gross domestic BIP (Bruttoinlands- product) [)dZi: di: (pi:] produkt)purchasing power parity: kaufkraftbereinigt at ~ [)p§:tSEsIN )paUE (pÄrEti] trillion [(trIljEn] Billion(en)

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Moving on up: China’s exports are

growing fast

Money, money, money: the new Chinese middle class

The air that you breathe: pollution in Beijing

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INTERCULTURAL COMMUNICATION CHINA

40 www.business-spotlight.de 5/2014

Indeed, global firms wanting to re-main competitive have no choice but to be active in emerging economies like China because the developed economies are not providing suffi-cient growth. As Jeff Immelt, head of General Electric (GE), told the BBC: “I sit in my office every day and say I’ve got to have a higher market share in China than I have in the United States. I’ve got to win Brazil; I’ve got to win Africa. There’s no choice.”

According to a 2014 article by BCG, it is “time to reengage with, not retreat from, emerging markets”. However, domestic Chinese firms with low-cost structures and first-hand knowl-edge of local consumers are more aggressive and improving their operations more quickly than glo-bal firms. The Chinese consumer- electronics firm Haier, for example, produced a washing machine that also cleans potatoes, after discovering that potato farmers were using their ma-chines to wash their produce. Haier

now focuses on finding niche markets in both developing and developed countries. One success in the US is an affordable wine cellar in the form of a small refrigerator with humidity control. Haier also produces one of the world’s top-selling standard fridges.

Firms like Haier are beginning to challenge multinationals in their home markets, reports BCG. And firms such as GE are now developing inno-vations for poorer markets and then transferring them back to the US. Re- cently, GE developed a portable ultra- sound machine for $15,000 (about €11,000) in China, which is now be-ing used in emergency rooms in US hospitals that need to cut costs.

GE is one multinational giant that has the international experience ne- cessary to succeed in China. Henkel, which has been in China since 1988, is another. China is now the firm’s third-biggest market, and in Septem-ber of last year, Henkel opened the world’s largest adhesives factory in

Shanghai. The firm encourages staff to move between its regional offices and provides intercultural training. “Employees working in China are from different cultural backgrounds,” says a Henkel spokesman. “This can inspire more ideas and passion.”

Alliance Boots also understands the Chinese market. Recently, it bought a 50 per cent stake in Guangzhou Pharmaceuticals, one of China’s larg-est wholesalers. It took two-and-a-half years of discussions before terms were even negotiated, the firm’s head, Stefano Pessina, told BBC News.

adhesive [Ed(hi:sIv] Klebstoffchallenge sb. [(tSÄlIndZ] auf jmdn. Druck ausübencompetitive [kEm(petEtIv] wettbewerbsfähigdeveloped economy Industriestaat [di)velEpt i(kQnEmi] emergency room Notaufnahme [i(m§:dZEnsi ru:m] US emerging economy Schwellenland [i)m§:dZIN i(kQnEmi] humidity control Luftfeuchtigkeits- [hju(mIdEti kEn)trEUl] regelungnegotiate sth. [nI(gEUSieIt] etw. aushandelnniche market Nischenmarkt [(ni:S )mA:kIt]pharmaceuticals Pharmazeutika [)fA:mE(su:tIk&lz] portable [(pO:tEb&l] tragbarproduce [(prQdju:s] Erzeugnissereengage with sth. sich erneut auf etw. [)ri:(IngeIdZ wID] einlassenrefrigerator [ri(frIdZEreItE] Kühlschrankretreat from sth. sich aus etw. [ri(tri:t frQm] zurückziehenspokesman [(spEUksmEn] Sprecherstake [steIk] Beteiligungterms [t§:mz] Konditionenwholesaler [(hEUlseI&lE] Großhändler(in)

“The value of trust could spread to the West”ABE SOROCK, American, owner of Atlas-China, a recruiting agency that supplies Chinese firms with bilingual Ameri-can expats in Beijing, China.

American expats who have worked in China and the US, who are bilingual and understand both cultures, are in

big demand here. They help Chinese firms gain intercultur-al understanding of and close deals with US firms.

In the past five years, Chinese companies have actively started to gain the intercultural skills they need to give

them an international advantage. The Chinese don’t expect foreigners to learn Chinese or their culture, but they see it as a sign of respect if you do.

I think China will change the way global business is done. For example, deci-sion-makers in Chinese firms will do business with you only after a relationship of trust has been built. As China becomes more powerful, the ability to build that trust will become a business advantage, and so this cultural value could spread to the West.

Beijing [)beI(dZIN] Pekingexpat (expatriate) [)eks(pÄt] ifml. (dauerhaft) im Ausland lebende Personrecruiting agency [ri(kru:tIN )eIdZEnsi] Personalagentur

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www.business-spotlight.de 41

“When you approach China, you have to be even more flexible than you have to be when working in the Western world.” Pessina says that the Chinese think longer term than people in the West and that they fre-quently change their minds.

Firms entering China with a one-size-fits-all marketing strategy will fail, as online auction site eBay learned. When it bought the Chinese EachNet e-commerce site in 2004, it took its US model to China. How-

ever, it could not compete with local rival Taobao, and closed down two years later. It then formed a joint venture with the local internet portal Tom Online, which helped it to meet local consumers’ needs.

“A great deal of commercial op-portunities in China are being lost in translation,” says Abe Sorock, who runs an agency in Beijing that recruits bilingual expats with international

compete with sb. es mit jmdm. aufnehmen [kEm(pi:t wID] expat (expatriate) (dauerhaft) im Ausland [)eks(pÄt] ifml. lebende Personlonger term [)lQNgE (t§:m] längerfristigone-size-fits-all Einheits-, [)wVn saIz )fIts (O:l] ifml. standardisiertrecruit sb. [ri(kru:t] jmdn. anwerben

China: A civilization, not a nation

China is one of the world’s oldest continuous civilizations, going

back to 221 BC, when seven nation states were united under the Qin dy-nasty. The Han dynasty, which came to power 15 years later, created the Chinese cultural identity, which has kept the Chinese people united for more than 2,000 years.

Today, 92 per cent of China’s pop-ulation call themselves Han. The country’s cultural roots, which are in-fluenced by the humanistic ideals of Confucius, exist as written codes for social and individual behaviour. They run deep, influencing all aspects of society, including business life. For example, guanxi, which means “re-lationship”, refers to the importance of close business relationships built on trust.

BC (before Christ) [)bi: (si:] v. Chr.code [kEUd] KodexConfucius [kEn(fju:SEs] Konfuzius

“The worse thing is to cause loss of face”JASON CHAN, Chinese, owner of Nihao-Nihao, a Chinese- language and intercultural-communication centre in Erlangen, Germany

I am married to a German, so I know that interest in learning Chinese and learning about Chinese culture

is growing here. One of the biggest clichés seems to be that China is “catching up to the West”. In fact, we have been around for 2,000 years, and China is again becoming the powerful nation it once was. It is a big mistake, when you are doing business in China, to believe that “Western” means “progress” and to expect the Chinese to westernize their businesses. Chinese people have a very long memory for bad behaviour and the worst thing is to cause someone loss of face.

catch up to sb. [)kÄtS (Vp tu] jmdn. einholencliché [(kli:SeI] [wg. Aussprache]

“Chinese cultural values are deeply entrenched. The Chinese are not going to westernize”

Jason Chan, Chinese intercultural-communication expert in Germany

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One-child policy: life for this

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Good to know

l Building a relationship based on trust is essential.

l Saving face is key in all interaction. Offer different options so that people do not feel forced into a corner. Never criticize anyone or give people special attention in front of others.

l The Chinese communicate indirectly. Deep knowledge of the culture is need-ed to read between the lines.

l The Chinese respect hierarchy. Each person in an organization has a role. This is important for keeping order.

l Avoid publicly expressing opinions about work, as this can be seen as criticizing your boss.

l When negotiating in China, take a senior manager with you. Senior people enter a room first and only the most senior Chinese speaks during discus-sions. Your team should do this, too.

l The Chinese value humility and the collective. Avoid introducing ideas with “I think…” or “I want…”. Displays of personal competence or talent are seen as egocentric.

l The Chinese value modesty. Present your ideas in a way that shows you don’t think they are perfect. Give as many sides of the argument as possi-ble, and use data and examples.

l Younger Chinese with more interna-tional experience behave less tradition-ally, but they seldom lose their cultural values, such as the need to save face.

display [dI(spleI] Zurschaustellunghumility [hju(mIlEti] Demutmodesty [(mQdEsti] Bescheidenheitnegotiate [nI(gEUSieIt] verhandelnsave face [)seIv (feIs] das Gesicht wahrensenior [(si:niE] leitend, hochrangig

experience for Chinese firms (see in-terview on p. 40). “More decisions are being made about bigger sums of money every day by people who are sitting around a table speaking only Mandarin,” Sorock says. “So if you want to be a part of those con-versations, you have to understand the language, how the Chinese shape their discussions, what kinds of pres-sures they are under and how to real- ly serve their needs. Employing for-eign staff to act as emissaries is a very practical, cheap and effective way of solving intercultural problems.”

Opportunities are there — and not only for global players, he says. “The

development you are seeing here is really just the beginning. People com-ing to China now will be very suc-cessful because many industries and niche markets are in their early stages of development. But in the next 20 years, they will really expand.”

Yet, Sorock has seen the ability of Chinese firms to interact with West-ern firms grow much more quickly than the other way round. “Most American firms expect the Chinese to speak English and to adapt to the US way of doing business,” he says.

emissary [(emIsEri] Abgesandte(r)

“There is an acceptance of change”JAMIE BETTLES, British, head of the European office (in Manchester) of Qingdao-based InternChina, an agency that places European interns with firms in China.

Our clients include Western firms and Chinese state firms with thousands

of employees, but we are also seeing growth in small, dynamic technolo-gy companies in areas like renewable energy, IT or computer games, often run by young Chinese who have studied or worked abroad. Small businesses in China see foreign employees as a way to gain intercultural competence. Of-ten, Chinese companies are reluctant to take on foreign staff for various reasons and an intern is a cost-effective way to try out foreign staff without too much commitment.

The cultural traditions of humility, modesty, harmony and saving face run deep. There is also an acceptance of change because people want social har-mony and don’t want to lose face by not supporting change.

based: ...- ~ [beIst] mit Sitz in ...humility [hju(mIlEti] Demutintern [(Int§:n] Praktikant(in)modesty [(mQdEsti] Bescheidenheitsave face [)seIv (feIs] das Gesicht wahren

Education: key to success in China

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CHINA INTERCULTURAL COMMUNICATION

Sorock does not see the meeting of East and West in China simply as a battle of winners and losers. As an entrepreneur, he believes business cooperation is one way of creating value for everyone: “My little role in creating a better future is to be here, trying to figure out how my country, America, can do better business with China.”

Jason Chan, a Chinese-language and intercultural-communication trainer in Erlangen, Germany (see

interview on p. 41), also believes that deep insight into the Chinese way of doing business is essential. “You won’t succeed in China if you do not under-stand the Chinese mindset,” he says. “Chinese civilization is 2,000 years old, and its cultural values are very complex and deeply entrenched. The Chinese are not going to westernize.”

Chan believes that China is “lying low” now, learning whatever it can from the West because it does not

deeply entrenched tief verwurzelt [)di:pli In(trentSt] figure sth. out etw. herausfinden [)fIgEr (aUt] ifml. insight [(InsaIt] Einblicklie low [)laI (lEU] sich im Verborgenen

halten; hier: sich zurückhalten

mindset [(maIndset] Mentalität, Denkweisesense of destiny Schicksalsglaube [)sens Ev (destEni] soft skills [(sQft skIlz] Sachkompetenz über-

steigende Fähigkeiten

Listen to more on this topic on Business Spotlight Audio

plus Test your knowledge of China in Business Spotlight plus

www For more on China, go to www.business-spotlight.de/china

BOOKSAge of Ambition: Chasing Fortune, Truth, and Faith in the New China, Evan Osnos (Farrar, Straus and Giroux) When China Rules the World: The End of the Western World and the Birth of a New Global Order, Martin Jacques (Penguin)

WEBSITESATLAS-China: http://atlas-china.com InternChina: http://internchina.comNihao-Nihao: www.nihao-nihao.com

For more information

yet have the soft skills to be a world power, but that China has awakened to a sense of destiny.

“We were once a great nation and it is as if the Chinese are now realiz-ing they can have that again,” says Chan. When that happens, he has no doubt Chinese firms will expect busi-ness partners to speak Mandarin and to adapt their way of doing business to the Chinese.

Vicki Sussens is a feature writer and editor of the Intercultural and Manage- ment sections of Business Spotlight. Contact: v.sussens@spotlight-verlag.de

BS

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Grammat ik

easy1. Which one is it?

Choose the correct option to complete each of the requests below.

MAKING REQUESTSIn Grammar at Work (p. 45), we present different structures that are used to make polite requests. Here are some exercises to practise these structures.

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a) I would hoped / was hoping you could take over the late shift next week.

b) Can you do / make me a favour? Can you put these files on the top shelf?

c) Do you mind if / that I leave a little earlier today?

d) You will / wouldn’t lend me £10, won’t / would you?

e) Could / Couldn’t you take these letters to the post office, please?

f) Would you mind to call / calling Dr Brown to can-cel my appointment?

medium2. A soft start

Complete these sentences with the words from the box.

afraid l bother l cheeky l excuse l favour l rather l sorry

advanced3. In your own words

Write what you might say in each situation. Include an introductory phrase or sentence and the word given in brackets.

Example: You’re in an expensive restaurant. You’ve already been served your food and wine. Ask the wai-ter to bring you a glass of tap water. (could)

Excuse me! Could you bring me a glass of tap water, please?

a) A colleague has parked his car so close to yours that you can’t get out of the parking space. Call him in his office and ask him to move his car. (bother)

b) You’re in the canteen, and you discover that you’ve left your wallet at home. Ask the colleague behind you in the queue to lend you ¤10. (couldn’t)

c) You need more time to finish a report. Ask your boss to give you a few more days. (wondering)

d) You‘re visiting a client and it’s very hot in the office. Ask to open the window. (mind)

e) You’re going on holiday for three weeks. Ask a colleague to water your plants. (favour)

f) A customer calls to enquire about prices. Ask her to hold on while you check the price list. (If)

a) Sorry to _______________ you, Mike, but could you give me a hand with these boxes?

b) I’ve got a big _______________ to ask you, Claudia. Could you drive me to the airport later?

c) I know this is a bit _______________, Tom, but could you possibly lend me ¤10?

d) I’m _______________ I haven’t quite finished with this yet. Could you give me another hour?

e) The radio’s _______________ loud, don’t you think? Would you mind turning it down a bit?

f) Er, _______________ me! Can you open the door for me, please?

g) I’m _______________ to keep going on about this, but I really do need those files back.

REMEMBER !To make a request more polite, you can introduce it with a question, an apology or a remark that explains the reason for your request:l Could you do me a favour? Could you

answer this email from a customer? l Sorry to bother you, but I was won-

dering if you could check this list for me.

l It’s rather cold in here, isn’t it? Do you mind if I shut the window?

What’s the best request?

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