Throughout this new era, business negotiations with Chinese is getting more challenging and difficult. Indeed it is true that the Chinese culture is complicated and is a result of traumatic. For an instance, the Tiananmen Square incident as a traumatic historical past that causes China to become an-open door policy country. Hofstede five cultural dimensions can actually give impact or influences to the business management of a company. By using Hofstede model, the Chinese culture can be analyzed on how they manage during the business negotiations.
Applying the Hofstede’s model in the Chinese culture, the Chinese society has a high score in power distance. During the business negotiations, Chinese society likes to give orders to their respective partners on how the business should be going as they tend to control others. Controlling others makes them feel that they have power in the business. The power that they manage also represents their status symbol in their own view.
Chinese culture has a low uncertainty avoidance. Uncertainty avoidance is mean that the society’s tolerance and ambiguity. Uncertainty avoidance also includes that the Chinese society wants to minimize the possibility of getting situations such as strict law and regulations and others. In Chinese culture, history became a factor that they can change the law whenever they like. When a business negotiation is about to reach to the end, Chinese society does not like any legal documents as they don’t trust the law. To make sure the business negotiation goes well, both partners including the Chinese society will draft out the business contact as they can discuss on the terms and conditions that they want to draft in the contract.
The Chinese culture has also showed that they are in the collectivist dimension. Collectivist in Hofstede’s is defined as the theory of practice that makes a group rather than individual. Chinese society emphasizes on the guanxi which is the relationship they want in a business. Some business partners may bring the Chinese people to have some entertainments while discussing or negotiating the business. Therefore, business partners should balance between formal and informal meeting so that the business negotiations will be successful.
The Chinese culture has shown that the Chinese society are the masculinity in the Hofstede’s model. In Hofstede model, masculinity is mean the trait for a society in which social gender roles are clearly distinct. In the Chinese society, they have the thoughts that men’s have to be motivated by their ambition and must have achievement of wealth meanwhile women’s have to stay out of business negotiations process. When the masculinity factor is applied in business negotiations, it is a threat for businesswomen as the Chinese society (men) would try to take control of everything.
The Chinese culture uses long term orientation. Long term orientation is future plan in a whole instead of just only the current plan for the time being. Chinese partners likes to commit on future market position instead of just cooperating for a short moment. If a business partner proposed to have a short term cooperation, then the Chinese partners will not be interested. In order to discuss about the business negotiations with the Chinese partner, it is better to talk about long term dealing by talking about future plans and all.