Cultures have a very significant impact on the way to make business. Chinese culture is belonging to Asian cultures, which are very peculiar and totally different from Western cultures. Wilson (2004) in one of his articles has stated that “culture is a popular explanatory concept frequently used to describe a company, a rationale for people’s behaviour, a guideline for action, a cause for condemnation or praise, or a quality that makes a company ‘what it is’”.

If a company is oriented toward the Chinese market, of course, the influence of Chinese culture will be significant. For example, culture can play a dramatic role in positioning new products or brand-building, or it may have an impact on consumers, on their preferences where to shop. Currently international companies are concerned with methods of attracting and satisfying Chinese customers. Managers should always keep in mind that Chinese culture can either track closely or have a knock-on effect on business and negotiating process. That is the problem.

To find a good solution and a good approach to Chinese customers foreign business partners have to know that Chinese consumers are different from their own culture. Chinese people value order and believe in their collectivistic culture. Also they are faithful to the cultural tradition of Confucianism which has a significant impact on their behaviour. However, currently there is a great influence of modernization, globalization and industrialization which put in question traditional Confucian values of Chinese consumers. Hence, the situation is changing rapidly and it is quite difficult to control it. The only way out of this endless circle is to monitor and analyze not the Chinese market and Chinese economy, but to analyze Chinese consumer behaviour from the anthropological point of view.

The good advice for managers could be to study Chinese culture in comparison with up-to-date anthropological monitoring. It is necessary to understand that quantitative studies (statistical data) are not a good base for creating different strategies oriented toward business at the Chinese market. Strategies based on qualitative studies will be very useful and beneficial for newcomers to the Chinese market due to the fact that the research based on qualitative methods purports the analysis and understanding of people’s behaviour. Only then foreign managers can state that they know Chinese market and Chinese consumers very well.

China standard of living has been levered up exponentially over the years that it’s now the one of the top few economies in the world. Through the decades, the standard living of China has been rising and consumers are changing their needs and wants. The Chinese no longer seek for basic needs such as food and shelter According to Maslow’s hierarchy of needs, higher standard of living has fulfilled Biological and Physiological needs of the consumers thus the Chinese are moving up the level and demanding more compared to the past.

Hence, a lot of foreign investors in China are no longer just producing their goods in China. Most foreign companies are now marketing their products in China itself due to the large population demand. With a population of 1,313,973,713 (July 2006 est.), labor is not an issue in China. With a huge consumer base and increasing economy, many foreign investors are fighting for a piece of the China market. Furthermore, the China government is encouraging more foreign companies to enter in the China market and certain regulations and procedures have been are no longer as stringent as before. With the government support, China received a total of 622.4 billion U.S. dollars in foreign direct investment from 1979 to 2005.

However, entering the China market is not an easy task. The government procedures in China are not easy to understand. Full of complexities and paperwork, many foreign investors are always so confused when dealing with the authorities. The Chinese have their own style of working which may irritate foreigners who are not familiar with the procedures here. Any complications with the government can lead to long delays with any business opportunities. Therefore, the best way to prevent any complications with the Chinese government would be to engage a local party to help the foreign company with the administrative stuff. First of all, locals would not have any problems with any language barriers. Locals would be more familiar and comfortable dealing with the higher authorities. Furthermore, they would know the proper negotiation methods here in China.

The Chinese cherishes relationships among people. They believe that with good relationship comes trust which will lead to mutual success. Hence, the Chinese businessmen will ensure a strong and stable relationship with their business partners before carrying out any dealings with them. This way of doing business often causes conflicts among foreign investors and the locals. Foreign companies need to understand and familiarize themselves with the Chinese culture. If not, miscommunications can ruin any potential business deals and mess up the whole plan on China market entry.