Myths about Doing Business in China

Christopher C.A. Chan (Australian National University Afghanistan)

Leadership & Organization Development Journal

ISSN: 0143-7739

Article publication date: 1 October 2005

787

Keywords

Citation

Chan, C.C.A. (2005), "Myths about Doing Business in China", Leadership & Organization Development Journal, Vol. 26 No. 7, pp. 596-597. https://doi.org/10.1108/01437730510624647

Publisher

:

Emerald Group Publishing Limited

Copyright © 2005, Emerald Group Publishing Limited


Myths about doing business in China' is a well‐thought practitioner oriented reference book. The main purpose of this book is to elucidate ten popular myths about doing business in China. For example, the first myth involves treating the whole of China as a homogeneous marketplace. The authors allude to the fact that there is tremendous diversity in a supposedly homogenous country. In the second myth, there seems to be an expectation that the Chinese market will continue to grow and perform at a spectacular level. However, the authors question the sustainability of this growth. The third myth identified by the authors includes a widely held perception that penetration into the Chinese market is an easy task because numerous companies have done so. In contrast to this belief, the authors present numerous pitfalls that are usually overlooked, such as the high level of competition, the need to deal with extensive bureaucracy, differences in legal framework, financial practices, and the prevalence of corruption.

Another myth that is highlighted in this book is that the “westernization” of China means that the Chinese share similar values to the West. According to the authors, this is hardly the case. For example, while a Chinese city may look like another city in other developed countries and people might wear Western clothes, the cultural underpinnings are largely integral to the values and behaviors of the Chinese. Moreover, the intricate application of guanxi or importance of relationship building in China is described. Interesting literary and classical texts were often used to reinforce the authors' points.

The often enigmatic negotiation styles of the Chinese people are also presented. This part offers foreign negotiators an idea about the Chinese psyche when it comes to negotiation.

The thorny issue about intellectual property (IP) is discussed. The authors took a very diplomatic approach in informing the readers about the Chinese perspectives on IP. Other related issues discussed include development of trust, corruption, and further discussion about the negotiation process. Finally, issues relating to the management of Chinese employees are discussed.

Overall the authors provide a great deal of information about the successes and blunders of firms, snippets of Chinese culture and practices, and possible encounters that businesspeople might experience. In addition to debunking the myths, the authors have treated various issues sensitively.

This book certainly lives up to its title. The complexity of doing business in China is captured in this book. Yet, this is not a recipe book for success for individuals who are operating in China or are thinking about investing in China. I strongly believe that this book will interest many overseas Chinese (including me) as much as it interests Westerners and individuals from other backgrounds. For these reasons, this book is a real eye opener.

Related articles