Doing Business In China

Doing business in China will be a far different experience than any you have ever undertaken. China is a diverse land of 1,306,313,812 people living in an area of 3,696,100 square miles with a diverse ancient culture that differs dramatically from the Western as night from day.

Putonghua, a form of Mandarin Chinese, is the primary language used for international commerce and cultural exchange, which has made doing business in China difficult. Fortunately, English is becoming an established second language and is required by students attending universities. Linguistic diversity flourishes in many regions and remote areas where the language takes on a life of its own.

China is a land more than 3,500 years old. Religion is universal, but not in the traditional way Westerners view it. There is sometimes little difference between religion and philosophy as practiced by Taoism, Buddhism and Chinese Folk Religion devotees where God is a concept that seems arbitrary, while inner growth and peace provide pathways to enlightenment. When traveling, be certain not to disparage any religion you may encounter, nor foist your own views on a people not overly fond of Westerners, who were considered barbarians not so very long ego.

The Chinese legal system appears incapable or unconcerned about providing safeguards for basic freedoms. Defense attorneys have little status or impact. Government use of "Reeducation Camps" is widespread. Justice is sometimes swift and strict with public executions the norm.

Human rights is a concept lacking in many respects. The People’s Republic of China (PRC) government asserts that the human rights situation is improving but harsh measures and abuses still occur.

The media is controlled by the PRC. The Chinese Central Television (CCTV) the The People’s daily, and Xinhua are agencies of the Chinese government.

Taboos include questioning the legitimacy of the Communist Party. Despite restrictions, some media control is changing since most state media outlets no longer receive large government subsidies and are expected to provide their own operating revenue through advertising. As a result, newspapers have grown bolder in their editorial stands, and are generating circulation sales through muckraking and investigative articles. But because of the threat of censorship, political commentary is limited.

The number of newspapers in China has increased from 42 in 1968 to more than 2,200 in 2005. About 7,000 magazines and journals are published. Underground print media outlets abound with pornography and smuggled Western romance publications leading the way.

Many publishers use their own distribution channels to avoid government control and understate figures to avoid taxes. Roughly 25,000 publishing houses and hundreds of individual bookstores produce and sell romance literature, porno, political and intellectual journals.

Television has grown from 1 set per 100 people to 25 sets in 2005 with roughly a billion people having access to 700 stations and 1,000 radio stations.

Television broadcasts are controlled by the Chinese Central Television (CCTV) with 16 channels commanding a 30% audience share in a single national network supervised by the Propaganda Department and the State Administration of Radio, Film and Television. Local shows command higher audiences which represent local view points.

China business travel is restricted in other ways. Driving a car is not recommended while risking your life with a cabbie is. The Chinese government “encourages” travel with a guide to keep you from stumbling into areas hostile to foreigners, which may be any area outside of the major cities each airline services. Don’t believe the travel brochures you read. “Facts” presented in these may be somewhat exaggerated. And there are a host of protocols from eating to tipping to sleeping arrangements that may bewilder even the hardiest traveler. The best thing to do is research. You can check these Web sites for protocol and background on the culture:

U.S. Department of State

China Travel

China Vista

China Window.com

The need for a valid visa and passport when doing business in China goes without saying. If you need to update or renew your passport, do so as far in advance as possible. The busy times for passport renewals is January through August. It may be best to plan on four months of prep work to complete all of your travel arrangements.

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