China Demands Common Sense

In the quest for the essence of doing business with China, Hong Kong is historically speaking a logical port of call. In this dynamic city with a population of more than 7 million, we team up with Daniël Ben-Ezra, Media Director of Spotz Media. December 2005, he severed his ties and set out for China, armed with a pocket sized Lonely Planet. What are his findings so far? Can he confirm the prevailing prejudices about the Chinese and doing business in China? Or does he dispel any form of cultural clash?

The business appeal of China, Hong Kong in particular, is like a red rag to the energetic Daniël Ben-Ezra. This already led him into some typical Asian tours de force; from a stage-managed meeting with an intimidating majority of participants, to binge drinking competitions at business dinners. However, according to him, the corporate gap between Hong Kong and Europe is not that huge. “Of course there are some differences. Promises are easier made than we usually tend to do. And therefore, they are of lesser value. This could be due to the fact that the Chinese, in my experience, avoid conflicts. Consequently they are quick to make promises, even if they don’t really understand what you mean.”



Hierarchy

“If you compare the European way of doing business with that of the Chinese, the importance of networking in China is paramount. Moreover, decisions are invariably made at the top of the pyramid. There is a strong hierarchy. For example, it is a waste of time talking to assistants as they have little or no authority to make decisions. The Chinese are also very bureaucratic, they love the red tape of seals, multiple signatures and copies of forms.”

To put it differently: managing to get in at top level, and not attaching too much value to promises; is that what defines the key to success in Asia? “Of course you should never generalise. To give an impression: even in a relatively small city like Hong Kong (http://www.chinasuccessstories.com/2007/11/06/tax-in-china/), there is a big difference among its inhabitants. Between ‘real’ locals, people born in Kowloon or the New Territories, and Island Chinese. Island Chinese are often American Born Chinese, referred to as ABCs. A local Hong Kong Chinese often speaks poor English, is in general not very assertive and has specific cultural habits. On the contrary, an American Born Chinese is usually very westernized in his take on the world. In addition the inhabitants of Hong Kong, in comparison to the inhabitants of other Chinese cities, are better educated and more sophisticated. Foreigners can easily get by using English in this Metropolis, whereas on the mainland being able to speak a little Chinese generally proves to be of value.”



Trends

Apart from the demographic diversity, there are of course similarities between mainland China and Hong Kong. “The Chinese are equally ambitious and keen to profit from the growth of their super power. The country is developing itself just like the former British colony, to western standards of lifestyle and income. That does not necessarily mean that Europe or the United States of America set the tone. For example Japanese fashion is very trendy and pop stars from South Korea are very popular.”



Essence

When it boils down to how to successfully position yourself between all the other budding trendsetters, Daniël Ben-Ezra is more than emphatic. “The Chinese business culture is hard, ambitious and networking is very important. That demands versatility, determination and an open-minded approach, alongside the willingness to learn and work hard: common sense really. If, on top of that, you are able to communicate clearly, be polite and show respect to others, doors will open, which otherwise would have remained firmly closed. In my opinion, that probably is the key to business success in China!”

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