Seminar Paper, 2006
23 Pages, Grade: 1,3
Table of Contents
Table of Contents List of Figures
List of Abbreviations
2. Problem Definition
3. Objectives and Metholodgy
4. The cultural development of the People’s Republic of China
4.1 An Historical Overview
4.2 The Religions and Morals in China
4.3 Communication and its context
4.4 The social behaviour pattern in China -The Guanxi-Concept
5. Introduction into the cultural theory models
5.1 The five dimension model of Hofstede
5.2 The value guide lines of Trompenaars
6. Case – Transrapid
6.1 The history of the Transrapid
6.2 The Transrapid in China
7. Conclusion, critical comments and outlook
8. Table of references
Figure 1: China’s GDP between 1952 and 2003 Figure 2: The Chinese dimension model of Hofstede Figure 3: The German dimension model of Hofstede
Figure 4: The Latin American dimension model of Hofstede Figure 5: The Asian dimension model of Hofstede
Figure 6: The European dimension model of Hofstede Figure 7: The Arab dimension model of Hofstede
illustration not visible in this excerpt
There is hardly another nation in the world which has changed its picture within the past two or three decades like the People’s Republic of China. The former communist regime of Mao Zedong has opened itself to the world since the end of the Cultural Revolution in 1976. This change is most apparent from the economic point of view and also from a social perspective. From 1976 on, foreign investors were allowed to enter the country to present their know-how as well as to bring in liquidity. As a consequence, there are constantly more goods manufactured in China for the global market.1
The progress of the economic trend clearly shows the increase of China’s influence on the world market. In the year 2005, China achieved a gross domestic product of CYN 18,232 billion (about EUR 18,060 billion) with a population of almost
1.3 billion people. This is an income per capita of CYN 14,025 (about EUR 1,390). In the year 2000, the income per capita amount was only CYN 7,812 (about EUR 774). This shows an increase of approximately 55 per cent only within five years.2 The figure on next page shows the growth of China’s GDP within the past 50 years.
Today Germany has a population of about 82 million people.3 In the year 2005, Germany’s GDP was located at around EUR 2,244 billion. These figures account a German’s per capita income of about EUR 27,365. Clearly, the level of the German income per capita is in absolute much higher. But the increase of Germany’s GDP compared to the year before only stands at 0.9 per cent.4
Previously, Germany’s companies reacted to the fast growth in China. In the year 1972, Germany obtained goods at an amount of EUR 175 million. In the year 2004, the value reached EUR 40 billion, which is an increase of 227 times. Since the year 2002, China attained the position of the second leading non-European export partner for Germany.5
illustration not visible in this excerpt
Figure 1: China’s GDP between 1952 and 2003
But, besides all of the positive trends that were mentioned in the introduction, huge communication problems between the Chinese and the Germans occur regularly. The background of these problems are mainly based on the cultural differences between Western and Eastern countries. These bilateral differences have been existing for several centuries and they still do exist in the today’s world of globalization.6
The objective of this case study is to discuss the cultural differences and their impact on business relations between German and Chinese business men. First of all, the development of Chinas culture will be constituted. Later on, this development will be analyzed by the models of Hofstede and Trompenaars who are both famous Dutch researcher of cross-cultural differences. Then the recent contract between the city of Shanghai and Transrapid International will be discussed.
The following section of the case study will describe some determined aspects of the Chinese culture which are important when doing business with China. For comprehending the way of the Chinese think and in what they believe, it is essential to understand the historical development of China. Below, the most important philosophies and religions will be analyzed, as well as the peculiarity of the Chinese language and communication. Furthermore, these peculiarities will be compared with the European language and communication manners. The last section will concentrate on the social behaviour of Chinese people and what Edward Hall (an American cross- cultural researcher) called low- and high-context society.
It has been documented, that the Chinese history started in the 21stcentury before Christ. At that time, the Xia-Dynasty arose and lasted for about 400 years, until the Zhou-Dynasty started. Later the Qin- and Han- Dynasty were in power.7 A detailed description of every century would go beyond the scope of this case study. That is why a huge step has to be made at this juncture up to the year 1911 after Christ, when the period of mandarin and imperialism finished and a revolution came into being. A new republic was proclaimed that led to a public disturbance of peace. The consequence was a civil war lasting until 1949 for nearly 40 years.8 On the 1st of October 1949, Mao Zedong proclaimed the People’s Republic of China and a new era in the history of China began.9 Mao’s goal was to build a new communistic regime and to re-develop the country’s economy by starting several campaigns. As a result of the first campaign (Land reform) about one million landlords were killed.10 Instead of a great leap forward, million of peasants, intellectuals and other anti-Maoists found their death during the campaigns and the cultural revolutions.11 Mao died in September 1976 and only a few weeks later his followers were brought into prison.12 Then Deng Xiaoping came to power and China started with foreign trade.
1 Cf.: Vermeer, M., (2002), china.de, p.38.
2 Cf.: http://www.auswaertigesamt.de/diplo/de/Laenderinformationen/China/ WirtschaftsdatenblattChina.pdf
3 Cf.: http://www.destatis.de/download/d/bevoe/bevoe_nach_bundeslaendern04.pdf
4 Cf.: http://www.destatis.de/presse/deutsch/pk/2006/bip2005i.pdf
5 Cf.: http://www.auswaertiges-amt.de/diplo/de/Laenderinformationen/China/Bilateral.html
6 Cf.: Chen, M., (2004), Geschäfte machen mit Chinesen, p.145.
7 Cf.: Zürl, K., Huang, J., (2002), Wirtschaftshandbuch China, p.64.
8 Cf.: Vermeer, M., (2002), china.de, p.34.
9 Cf.: Seitz, K., (2006), China, p.161.
10 Cf.: Seitz, K., (2006), China, p.169.
11 Cf.: Seitz, K., (2006), China, p.216.
12 Cf.: Seitz, K., (2006), China, p.227.
Scientific Study, 331 Pages
Project Report, 13 Pages
Diploma Thesis, 88 Pages
Term Paper, 16 Pages
Research Paper (undergraduate), 9 Pages
Textbook, 141 Pages
Research Paper (postgraduate), 422 Pages
Scientific Essay, 25 Pages
GRIN Publishing, located in Munich, Germany, has specialized since its foundation in 1998 in the publication of academic ebooks and books. The publishing website GRIN.com offer students, graduates and university professors the ideal platform for the presentation of scientific papers, such as research projects, theses, dissertations, and academic essays to a wide audience.
Free Publication of your term paper, essay, interpretation, bachelor's thesis, master's thesis, dissertation or textbook - upload now!