FPCI Public Discussion on Understanding the Business Culture of Chinese Companies
(Jakarta, February 12th, 2018) In these last few years, Chinese companies become one of the powerful forces in the world economy. Meanwhile, Indonesia is the strategic place market that aimed at American, Japanese, Korean and Singaporean companies too before; it makes Indonesian familiar with the way how their business is going. So it might be necessary to acknowledge and understand the business culture of Chinese companies since China become one of the influential potential countries in the world, especially in the economy field.
Come to the discussion three speakers include; Du Qiqi (Assistant Country Manager, Bank of China), Patrick Tuah (Director, Business Development of Angeline Suparto Law Corporation and Sino-Indonesia Investment Consultant), and William Widjaja (Business Development Manager of Kawan Lama Group) to share their thoughts about China business culture at Bengkel Diplomasi on Monday, February 12, 2018.
Compared to other countries, personal relationship plays a vital role in order to deal with Chinese companies, William Widjaja stated. “Instead of focusing on making perfect contracts, you should be more focused on building the relationship and interaction with the owner of the company,” added him. According to the point he wants to make, the keys to successfully engage with Chinese companies is prioritize to learn about the culture, the people, and the philosophy of China instead of focus on the dealt of making cheap products.
Besides, Patrick Tuah introducing two idioms that evidently being the basic foundation of understanding Chinese business culture; “with harmony, comes prosperity” and “a word is worth a thousand gold bars.” The first idiom; with harmony, comes prosperity means that harmony is essential to ensure an inflow of wealth, especially in business dealings. The second one; “a word is worth a thousand gold bars” taught people to honor their word, it is necessary to stick to terms agreed.
Du Qiqi stated that there is an influence of traditional Chinese culture on forming the China business culture nowadays, which is the Confucianism.” To solve this, we must lie on two principles; first is you must be close to the person, and the second is you should respect the person,” added him. To further explain, Chinese people, are very focused on social order. Another influence that makes China business culture even stronger was Chinese economic reform in 1978 that makes them understand the responsibilities in many aspects, including in business aspect.
The fundamental differences that make China has its own unique business culture are in the tactics and the rules. Western companies –American companies have states that people need to agree with before dealing the business contract, while Chinese companies need to establish the relationship first. “If you do not establish relationships with American companies is fine. With Chinese companies, if you maintain the relationship, there is always a room for negotiation,” added William Widjaja.