Introduction
Nowadays, China is one of the most prosperous countries for business. It has rapidly established itself as one of the most influential world leaders in international trade. Businesspeople often prefer Chinese business platforms to start entrepreneurship, as there are numerous advantages. Moreover, China is one of the most attractive options for starting a business: the tax system and economy allow comfortable conditions for setting up a business. Traditional values are significant components of Chinese culture, shaping the country as an entire cultural entity. It is essential to look at Chinese culture, economy, and business to note differences from the United States and make a reasonable conclusion about setting up business in China.
Sociocultural Features
China is one of the most prominent reminders of valuing a country’s traditions and culture. Ancient China was an example of architectural masterpieces which amazed the whole world with their quality and amount. One of the most vivid examples of Chinese manufacturing was silk, which created a particular landmark for the world’s manufacturers. Striving for perfection and harmony might characterize Chinese cultural and social approaches to life and business. Compared to European and United States business cultures, Chinese entrepreneurs strive to work together to achieve a common goal (Daoust, 2018). Like most Asian countries, China values age; it is seen how different Chinese communication is from that of America or Europe (Daoust, 2018). In addition, Chinese people never give direct negative feedback; instead, they politely point at one’s mistake, which will help to solve the issue effectively and painlessly. This feature is of high context culture; the level of contribution and trust is high in China, and local citizens attempt to build strong relations with other people.
Economical Differences
Some can consider the Chinese economy in agricultural trade as China is one of the most successful examples of rapid economic development. The local government encourages foreign business and provides a system of benefits for entrepreneurs worldwide. Moreover, the special conditions of China create a unique atmosphere of hospitality and comfort. China’s economic system is capitalism, while the consequential national idea is the prosperity of Chinese citizens. Governmental enterprises constitute the most significant part of the Chinese economy; small companies and individual businesses exist. China’s economy is one of the most successful examples of rapid development; many countries today strive to cooperate with China, as the government has manifested itself as a world leader in high-tech innovation, agriculture, and technologies.
China possesses a market economy that involves economic planning through industrial policy and strategic plans. The country’s leading sectors are coal, metallurgical, textile, machine-building, and food. Crop production has become one of the main branches of agriculture. Nevertheless, the economy of China proceeds to change, and various forms of ownership might coexist. China is the largest trading partner of the United States, and it is interesting to scrutinize the economic differences between these countries (York et al., 2022). The taxation system in China is comfortable for businesses, while the U. S. taxation structure is ‘against capital investment’ (York et al., 2022, para 2). Setting up business in the U. S. might be problematic because of the complicated tax system and high rates. For example, corporate tax in the United States constitutes 18,3 percent, while in China, the same tax is 4,8 percent (York et al., 2022). Therefore, the difference is vast between small enterprises and larger companies. Additively, in China, all entrepreneurs, including local and foreign ones, pay taxes; these finances constitute a governmental budget used to improve the country’s image, making it innovative and comfortable.
Legal-Political Features
Chinese legal-political system is relatively clear to understand foreigners. It is possible to divide the structure into several levels, which will be markers of importance and efficiency. For instance, the Constitution is the most vital document in China’s legal system and prevails over other regulations (Du, 2020). Then, general and basic laws formulated by the National People’s Congress constitute the second level of vitality in the system. Administrative regulations, judicial interpretations generated by the Supreme People’s Court, and military regulations prevail in the last class of the system, which include local laws and departmental rules.
Moreover, the legal-political structure of China respects responsible and reliable rulers. Primarily, the system was created according to ancient Chinese traditions. The central part of attention and effort was made by Confucius, who aimed to work out a certain standard of high morality, and behavior, creating the ideal image of a contemporary person. In Confucius’ view, mandatory policies and ritual norms should shape the modern citizen. He saw the need to establish social order and attempted to create a clear structure where every person would have their place, rights, and duties. This tendency to preserve existing orders and strengthen the social and political order was due to former political instability. During the life of Confucius, China was not a country of moral and behavioral landmarks; rather, it was oppressed by individual kingdoms of hegemony and the moral decay of society. Today, people can witness how China managed to recover from its destructive past. With its high standards of virtue and social order, the Chinese legal-political system differs from other countries. Almost no country but China combines ancient traditions and modern legislation in its approach.
Managerial Differences
Management style possesses valuation of traditions and customs respectively. In China, the management style is characterized by the presence of a senior figure who instructs other workers. Furthermore, the senior manager should be a fatherly figure who carefully administers and executes control over employees (Cunningham, 2019). It is believed that such a strategy contributes to the company’s goals and helps to solve various issues faster. This managerial approach is mutually beneficial, as it is based on mutual respect and trust. As it was mentioned above, Chinese people never give direct negative feedback. This strategy makes work more comfortable and efficient for all team members in the management system.
Some features might seem surprising when people come to China to set up a business. For instance, in American organizational culture, people rely on job titles and believe it reflects the importance and power of a person. As a rule, it leads to higher competition, as many candidates strive to get a higher title. As a result, the company’s goals might be achieved due to more prestigious competitiveness and productivity, but the American management style is characterized mainly by individualism (Cunningham, 2019). Chinese businesspeople are unfamiliar with the internal competition; as China’s culture strives for harmony in every aspect of life, management does the same. Respect, politeness, and care differ in Chinese leadership from other countries’ approaches.
Conclusion
Overall, China is a country of high moral and behavioral standards. It has established itself as one of the most prominent leaders in the economy and technological development. Due to the respect for traditions and rituals in Chinese culture, the country is characterized by explicit norms of behavior and expects the same from foreign people. Doing business in China benefits the government and the entrepreneur due to the comfortable taxation system.
References
Cunningham, B. (2019). Discussion on the differences between U.S and Chinese management styles. Global Tides, 13(3), 1-6. Web.
Daoust, M. (2018). Chinese cultural codes and business practices. National University, 1, 1-7. Web.
Du, G. (2020). What’s Chinese legal system? – China legal research guide. China Justice Observer. Web.
York, E., Durante, A., & Muresianu, A. (2022). Comparing the corporate tax systems in the United States and China. Tax Foundation. Web.