Let me first of all, thank the Ministry of Foreign Affairs and Foreign Trade of Jamaica and the Port Authority of Jamaica for organizing this seminar with the general theme of DOING BUSINESS WITH CHINA in preparation for the China-Caribbean Economic and Trade Cooperation Forum. I was suggested to speak under the topic UNDERSTANDING THE CHINESE CULTURE.
It is indeed a very big topic! China has a history of civilization for over 5000 years. For centuries, China has perpetuated her excellent traditions and national spirit, while at the same time adopting the best facets of other civilizations. But I think the primary interests for our friends present here today is the basic knowledge of Chinese culture, and also some commercial aspect of Chinese culture.
However, before touching on that, I'd like to give you a brief account of China's economic and foreign trade situation. 25 years ago, the Chinese people, led by late Deng Xiaoping, started the historical journey of reform and opening-up. Over the 25 years from 1978 to 2003, China maintained an average annual economic growth rate of 9.4% with GDP increasing from 147.3 billion USD to 1.4 trillion USD. The import and export volume increased from 20.6 billion USD to 851.2 billion USD, with an average annual growth rate of 16.1%. In 1978 there was hardly any project using foreign capital, but by the end of 2003 the accumulated foreign capital used in the country already amounted to 679.6 billion USD.
In foreign trade, just 10 months from January to October this year, the import and export volume reached the level of the whole of last year. It is estimated that the foreign trade volume will come to a new record high of 1 trillion USD by the end of 2004, making China the third largest trading nation in the world.
From 1990s up to now, China's trade relations with Latin American Countries have experienced a period of fast growth, achieving 2-digits growth rate in most of the years. Trade volume of 2003 was 6 times that of 1993. China's total investment in Latin America has mounted to over 4 billion USD. China's sound development is now one of the driving forces of the economic growth of Latin American countries.
Our economic and trade links with Jamaica have also made much headway in the recent years. Jamaica is China's top trading partner in the English-speaking Caribbean region. Based on the 200 million USD record set in 2003, the two countries have managed to make a big stride forward this year: by the end of September, the trade volume between China and Jamaica registered 350 million USD, that is 1.5 times of what we achieved last year. China's decision to co-host the China-Caribbean Economic and Trade Cooperation Forum with Jamaica next February is not only a reflection of the friendly relationship between the two countries, but also an impetus to our trade and economic cooperation.
China's development has provided a very good business opportunity to the world. For instance, in 2003, China consumed 8,200 million tons of cement. That was half of the world's consumption. China is already the leading importer of many raw materials and industrial products, including soybean, iron ore, wool, rubber and alumina. The point is that China's economy is still expanding. Some economists have predicted that by the year 2020, China's economic output will come to 4 trillion USD, with the foreign trade volume reaching 2 trillion USD, of which the import will be 1 trillion. So you would agree that the huge Chinese market will become more and more attractive to the businessmen the world over.
However, China and Jamaica are geographically far away from each other. And our two cultures are different. The geographical distance and cultural gap between us may cause some problems for Jamaican friends. Therefore, it is necessary to know something about the Chinese culture, especially its influence on the values of the Chinese people and consequently the business philosophy of China.
China's ancient civilization is one of the few civilizations with independent origins, and the only unbroken civilization in human history. Chinese culture, born alongside with the development of the civilization, has been prosperous all the time. It has influenced the human development in countries far beyond the Chinese borders and shines in even greater brilliance in the world of today.
The foundation of traditional Chinese culture is Confucianism, which gives Chinese culture the most important feature, that is, emphasis on the harmony of man and society. Confucianism is a kind of system advocating moral, political and social principles concerning with the value of the individual and the cultivation of personal ethics. Therefore, imbued with a deep sense of humanism, Chinese culture attaches great importance to personal ethics, self-improvement and self-cultivation, thus leading to the pursuit of moral perfection. These are also the marrow of Chinese business philosophy.
Business has a long tradition in China. Even before the first unification of the Chinese nation in 221 BC, well-planned domestic business network had been set up. Later on, with the economic development, successive governments had established national highway and canal systems to transport farm produce. Actually some of the canals are still in use even today. Metropolis with over 1 million population emerged in China at least 1000 years ago, whose prosperity and bustling commerce had attracted merchants from the western world. And they came to China along the ancient Silk Road, which is an example of ancient China's trade relationship with foreign countries. Chinese people's capability of managing business has been recognized in many countries.
According to ancient Chinese philosophy, the universe is actively evolving, and human beings should struggle to improve themselves as well. Over centuries, the Chinese people have kept many fine traditions, which enable them to build the Great Wall, invent compass, paper-making, gunpowder and moveable type of printing and find new homes in many countries of the world.
In many ways, Jamaica is luckier than China. China is much bigger than Jamaica, but are you aware that at least one third of the land in China is considered as not suitable for human habitation? Jamaica is the land of wood and water, while China's resources are limited because of our huge population. Hurricane is ruthless but doesn't come frequently, while in China, hardly a year passed without attacks by natural calamities such as floods, drought, typhoon or earthquake etc. but we have survived by fighting back together and hard working. We know we must devote ourselves to the self-improvement. The Chinese people realize that their history is not something just to be proud of, but something to be carried forward.
Please remember that these are the people you will do business with.
Of course, individuals may vary from one to the other. But generally speaking, the Chinese people share many basic values and characteristics. I have summarized the following 6 points for your information:
1. Treasuring fame and credibility
The Chinese people are brought up in the culture atmosphere, which attaches great importance to fame and credibility. In the eyes of Chinese, being punctual and always keep promises are essential issues for anyone who wishes to establish his own business.
There are many fables and stories on this theme in China. One of them goes in this way: Once upon a time, a lad makes a promise to meet his beloved lass under a bridge. He gets there on time, but the lass doesn't show up at the appointed time. The lad waits and waits, and suddenly finds that the river floods. What should he do? Runs away? No, the lad chooses to stay. He waits and waits, till he is drowned in the floods. In China, it is the faithfulness that is highly valued. "A promise is worth a million" is many people's pet phrase.
Being constantly refreshed with stories like that since their childhood, the Chinese people regard it as a bad habit, and consequently, a symbol of poor education, if someone fails to honour an agreement, keep a promise, or just being late for an appointment. So if you wish to leave a good impression on a Chinese from the very beginning, please be sure being on time.
2. 2. Hardworking and thrifty
As a matter of fact, these are universally acknowledged virtues of the Chinese people. If someone makes himself a millionaire by hard working and thrifty, most probably he is a Chinese. The Jamaican Chinese is a good example in this regard. In the early days of their settlement in Jamaica, most of them made a living by operating China shops in villages. These shops mainly sold daily necessities and farming tools. Later, by introducing more flexible sales modes like account sale, they expanded their business which grew in strength and gradually became the pillar of the early commerce in Jamaica. Nowadays, although many Jamaican Chinese undertake other professions, yet traditional virtues can still be felt as they guided the Chinese in Jamaica along their path of entrepreneurship.
You have heard of Mr. Li Ka Shing, a billionaire and the top businessman of Hong Kong. He started his first business by selling plastic flower with borrowed 5000 HKD. He leads a very simple life. There is no swimming pool in his house and the watch he wears was bought with 26 USD. He once said, I don't mind donating 1 million dollar, but when I find there is 1 dollar on the ground, I will go and pick it up. Not a penny should be wasted.
3. Modest and implicative behavior
Direct, sign-on-the-dotted-line culture may work in western countries, but in China, talking too much on oneself or praise oneself too much will be taken as lack of modesty, and that's quite annoying. Therefore, Chinese people normally try to avoid praising their products and service in a direct way. Instead, they prefer to leave it to customers and let facts speak. In China we have a proverb: Good wine doesn't mind being served in a back street tavern. In English there is a proverb with the same meaning: Good wine needs no bush.
On the other hand, the Chinese people seem to be a little bit ambiguous. Sometimes they don't refuse others straightforwardly and prefer to express their refusal in an indirect way, leaving foreigners at loss. Never mind, they are just trying to save faces for both sides. Maybe it is difficult for you to understand this, but it is part of the Chinese culture.
4. 4. Long-term partnership
The Chinese people believe that time will reveal a person's heart as distance tests a horse' strength. Successful business relationship can only be established on the basis of reliability, which comes naturally from day to day dealings. It takes longer time for the Chinese people to make friends. However, when they find you trustworthy, they are ready to be your lifetime friends. So establishing personal contacts and friendship with your Chinese partners could be vital to your business.
5. Introvert personality
The Chinese people are introvert. So don't be surprised if your Chinese partner doesn't share a hearty laughter with you. They don't like lengthy speeches, they are usually not good dancers or singers, or they don't want to show off their talents. They are not used to attending banquets, cocktail parties, afternoon tea and coffee break. In a word, compared with Jamaicans, they are not hot enough. But, as I just said, they could be very good friends.
6. Small profits but quick turnover
The Chinese people don't mind gains and losses of one transaction. What they care is to have a footing in the future marketplace. They could sell more of their products by losing some profits so as to speed up their capital circulation. In business, they are always trying to reach a win-win solution. They know that partnership can last long only when both sides make profits.
Cheating is a very serious offence in China. They don't like to be fooled. If they find themselves being trapped, their retaliation is sometimes out of your expectation. So the best solution you could take before doing business with China is to be a faithful and reliable partner. When the Chinese businessmen take you as a friend and a long-term cooperation is established, it's you turn to make great profits.
China is far away from Jamaica, but my Embassy is very close to you. We are at 8 Seaview Avenue. At the end of my address, I'd like to use a quotation from Sunzi, a famous strategist in the 5th century BC "Know the enemy and know yourself, and you can fight a hundred battles without defeat." So before you start to do business with China, you are welcomed to contact the commercial office of my Embassy. My colleagues in that office Counsellor Hao Yongjiang and First Secretaries Wang Wenbin and Zhong Chuanshui will do their best to provide you assistance. You can also log on relevant websites set up by the Ministry of Commerce, China Council for the Promotion of International Trade and governmental agencies of various levels for detailed information. When you are in China, you can always get necessary help and assistance from local governments.
Please accept my best wishes for the success of your business with China.
Thank you very much.
