Chinese Business Continues To Be Based on Family Ties
Mainstream Chinese culture is rooted in Confucianism. The belief system of Confucianism is based on the teachings and writings of the 6th Century BCE philosopher Confucius. Emphasis is placed on the concept of relationships and the elements of responsibility and obligation – especially obligation to one’s family.
Francis Fukuyama, in his landmark book, “Trust: The Social Virtues and the Creation of Prosperity” says that despite the explosion of Chinese industry around the world in the past twenty years and the high-tech, modern façade of many Chinese companies, Chinese businesses continue to be based on family ties. Simply put, there is a very strong inclination on the part of the Chinese to trust only people related to them, and conversely to distrust people outside their family and kinship group.
Fukuyama says, “The tendency of Chinese firms to remain small and family managed . . . constitute an advantage. They have done best in relatively labor-intensive sectors and in sectors with fast-changing, highly-segmented, and therefore small markets such as textiles and apparel, trading, timber and other commodities, PC components and assembly, leather goods, small-scale metalworking, furniture, plastics, toys, paper products and banking. A small, family-managed firm is highly flexible and can make decisions rapidly.”
In order to take advantage of highly flexible, low-cost Chinese manufacturing, you need someone that can navigate the unique economic and social characteristics of Chinese society. Mainland China Trading & Consulting knows Chinese culture, because we are Chinese! We are American too, and that’s the beauty of our business model. And you get to reap the benefits of that model – if you’re willing. |
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