Cultural Profile

To: Professor Boyer
From: leo
Date: March 6, 2013
Subject: Cultural Profile of China

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This report covers several important aspects of Chinese economic situation, political environment, and cultural influence. It not only can help our team have a deep understanding for doing business in China, but also we can use this report to make better strategies to help Macy??™s enter the Chinese market and fight with local competitors.

Chinese economic situation
China is the biggest and best developing country, and it is currently the second largest economy in the world. In 2012, the GDP of china approached 51,932.2 billion yuan with 7.8% growth from 2011. Although Chinese economy was affected by the world economic recession, China??™s economy has bounced back in the fourth quarter of 2012 (Trading Economics, 2013). Moreover, Chinese government announced the proactive fiscal policy to stimulate the economy in 2013 and expect to have 7.5% GDP growth in this year.

Chinese political environment
People??™s Republic of China is a single party state governed by the communist party of China. In 1970??™s, China started the policy of reform and open which was determined by Deng who was the second president of China. This policy not only greatly encourages the foreign investments to China, but also constructed a solid foundation for Chinese economic boom. But political system in China has a great difference with that in US, because, in China, the political policies always give big influence on economy and business environment. Moreover, the relationship with government is a big factor to determine whether you can doing business successfully or not (Lawrence& Martin, 2013).

Policies and major laws governing foreign enterprises
In order to satisfy China??™s fundamental principle of opening up to the outside world, and Deng Xiaoping Theory, China is always insist on absorbing the world wide successful enterprises making investments to China. And to better serve the foreign enterprises and to promote foreign investments to China, China passed several major laws to protect and strengthen the rights for China and foreign enterprises, such as the law of P.R.C. on Chinese-Foreign Equity Joint Ventures and its implementation regulations, The law of P.R.C. on Chinese-Foreign Contractual Joint Ventures and its implementation regulations, and The law of P.R.C. on Wholly Foreign-Owned Enterprise and its implementation regulations (China. Org. Cn.).

Chinese cultural orientation ??“ High cultural context
China is one of the worlds oldest civilizations. Chinese people are greatly affected by their traditional culture and long history. These all make Chinese people grow to have high cultural context which is much different from a lot of western countries, especially for America. In China, a few worlds always can present a complex message, therefore the words choice will be very careful thing during the communication.
Nonverbal norm for Chinese social culture
Chinese people are affected by a lot of traditional cultural influence. This derives a lot of Chinese nonverbal communication customs which need to be paid attention to, when foreigners communicate with Chinese. The following are some examples for that.
??? When talking with each other, people can stand close to each other to show politeness, trust, and willing to fit in.
??? When you meet elder people, you should lower your head and bend slightly to show respect.
??? If you want to make a ???sincere promise??? to others, you can put your right hand in front of heart.
??? If you feel angry to others, you should control your emotion. Only people in the lower class of China cannot control their emotion.

Business practice in China
Chinese unique traditional culture and 5000 years history produce their special business practice which has very big difference from western countries. Understanding and practicing these business customs are always the essential factors to determine your business success. The following are some instances for that.
??? The personal relationship determines business relationship (Canadian Tradition Commissioner Service).
??? Sending appropriate gifts to build business relationship is not bribery but it is the common way to show respect (Canadian Tradition Commissioner Service).
??? Business decision and discussion are always conducted in the meal time (Canadian Tradition Commissioner Service).
??? Follow leader??™s arrangement, especially for the orders from government officials (Canadian Tradition Commissioner Service).

Although Chinese economy and policies for foreign companies can encourage business expansion of Macy??™s, the politics and culture difference will be big challenges to us. Understanding the information in this report will be very useful for our team to make appropriate strategies to help Macy??™s establish their successful movement.
Trading Economics. (2013) China Economy Accelerates In The Fourth Quarter. Retrieved March 6, 2013 from

Susan V. Lawrence & Michael F. Martin. (January 31, 2013) Understanding China??™s Political System. Retrieved March 6, 2013 from

China. Org. Cn. Foreign investment policy system in China. Retrieved March 6, 2013 from

Canadian Tradition Commissioner Service. Business Etiquette in China. Retrieved March 6, 2013 from

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