Chinese Businessman Emphasizes Culture

On Thursday evening, Savio Chan introduced the McDonough School of Business's students to a new dialect of Chinese — business communications.

The MSB asked Chan, president and chief executive officer of US China Partners, Inc., to shed light on the business environment in his home country, which has garnered increasing interest among students and faculty because of its rising economic and global position.

"We style ourselves to be a global business school," associate professor Elaine Romanelli said. "It's events like this that make me think we've achieved that."

The talk emphasized that in facilitating business with China, American entrepreneurs must first understand Chinese culture and social interaction. The style utilized in Beijing and Shanghai differs significantly from the approach used in New York City or D.C.

"What works in Europe and America most likely does not apply in China," Chan said. "[The] Chinese are much more holistic people, and working with them requires patience."

According to Chan, contracts and partnerships in China are not necessarily founded on a company's wealth, prestige or talent. Instead, the Chinese base such decisions on long-term, personal relationships.

"If they sense you respect them a lot, they will work with you," Chan said.

He suggested that American entrepeneurs who wish to do business with the Chinese should study the country's cultural norms.

Politeness, for instance, holds an important place in the Chinese culture. Smiling, using simple language, recognizing superstition and avoiding confrontation are normal behaviors in Chinese business communications.

Chan said that often successful international corporations, like Google, Inc., do not understand the intricacies of Chinese commerce and can suffer from this lack of knowledge.

Since entering China in 2005, Google, a multi-billion dollar Internet search engine, has complained of excessive government interference and censorship. These criticisms have strained the relationship between the company and federal authorities, creating a rift that Chan does not believe can be healed.

"You can never ever openly challenge your Chinese partner," he said, "Even if you have every reason to challenge them, you can never ever do it in public."

To avoid such problems, Chan suggested that foreigners consult with native Chinese executives, who have intimate knowledge of the country's markets and complex regulation laws.

David Zajc (GRD) said that, as an aspiring businessman, he found Chan's tips useful.

"It's a very different way of thinking," Zajc said. "[It is difficult] to suddenly go to a country like China with its own business practices, which we know nothing about."

Chan encouraged business students like Zajc to take interest in Chinese opportunities.

"You want to surround yourselves with the best, most successful people [in China]," he said, "And if you have a Georgetown Rolodex you can do it in half the time."