引言
在1978年，中國經濟改革，和對外開放以來，中國的經濟增長速度異常迅猛。中國經濟改革的主要目的是建立充分的剩余價值來支持中國經濟的現代化。當外國企業在1978年第一次踏入中國市場時，他們幾乎沒有面臨什么與本地市場的競爭，中國的顧客們也都十分推崇這些外國品牌。而在二十世紀九十年代的后期，情況發生了轉變，外資企業發現，與他們進行競爭的不僅僅是其他外資企業，還有那些本地的企業，本地企業經營更加完善，且物美價廉。從此以后，許多的外資企業都失去了商譽（范，2007）。

因此，據芮偉德&李（2003，p.3）介紹，中國經濟快速增長的主要因素是快速的資本累積，生產力的改進以及外商直接投資。外商直接投資增加的效率居高不下。由于大量的外商直接投資，中國政府出臺了外商投資特權政策。芮偉德&李（2003,p.3）同時還介紹道，從1979年到2000年這段時間，中國依靠外商投資已經獲得了5189億美元。

Introduction

In 1978, since establishing in China the era of Chinese economic reforms and its opening to the outside world, China’s economy has reached an exceptional rapid growth. The main aim of Chinese economic reforms was to create sufficient surplus value to support the modernization of the Chinese economy. When foreign companies firstly entered the Chinese market in 1978, they have faced very small competition with local companies and were respected and adored by Chinese consumers. The situation have changed in the later 1990’s, when FIEs found increasing competition against them not only from other FIEs but also from local companies that were offering better deal and cheaper prices. Many FIEs since then lose reputational advantage and goodwill (Fan, 2007).

Therefore, the major factors of China’s rapid economic growth according to Reuvid & Li (2003, p. 3) were rapid capital accumulation, improvements in productivity and foreign direct investments (FDI). FDI were increasing in a high rate. Large inflow of FDI was a result of privileged foreign investment policies. Reuvid & Li (2003, p. 3) also reports, that for the period from 1979 to 2000 China has received a total of US$518.9 billion in foreign investment.

Similarly, Luo (2000, p. 159) agrees that for the same period Chinese authorities have mobilized investment of US$522.4 billion in foreign capital, but adds that it was established over 300,000 foreign invested enterprises (FIEs) in mainland China. Currently, there are more than 500,000 FIEs operating in China.

Since there are this many foreign companies, corporations and private businesspersons are operating in China, there is a possibilities that they might face some problems. Both (Brett & Gretchen, 1999, p. 205) and (Plafker, 2007, p. 79) marked out that among a vast variety of problems the main are negotiation strategy and business etiquette. Without any doubt, the main challenges can be distinguished as cultural aspect that leads to wide-ranging dissimilarities between the Western culture and the Eastern one, specifically Chinese, which, in turn, causes big problems in doing business. These problems have become a huge challenge that is not easy to overcome.#p#分頁標題#e#

Firstly, this paper will discuss negotiation strategy and Chinese philosophy of thinking. In addition, ‘guanxi’ aspect will be covered in this part, as ‘guanxi’ is an important part of in Chinese business world. The aim of this part is an attempt to show how Chinese people are thinking and what leads for their decisions. Secondly, there will be an attempt to show the pitfalls of Chinese business etiquette. The main purpose of this part is to give a reader an idea of what should be done, and what should not while doing business in China. The purposes of this essay is try to examine each of these aspects individually, through examples explain how they affect business communication and suggest ways to overcome these challenges. In addition, the aim of this work is try to show how to do business with Chinese specific.

Negotiation strategy

In the face of colossal interest about China by the Western world, China remains a dream for countless western enterprises and companies. One of the potential challenges that often threaten West-Eastern commercial relationships, especially China, is negotiation. An analysis of Western enterprises trading with China has shown that they considered negotiation strategy as the most successful factor for trading in China (Brett & Gretchen, 1999). Although the Chinese are less developed and industrialized than the West, but for hundreds of years they have known some nobles in the great art of negotiating. The Chinese style of negotiating was not recently created, it appeared in ancient times. Actually, negotiations play a significant part of Chinese life (Brett & Gretchen, 1999, p. 207). It comes from the Chinese culture, tradition and philosophy. For better understanding the basics of Chinese way of negotiating it is better to start from the philosophy of how Chinese are thinking and what is Chinese business culture.

Chinese philosophy of thinking

It is generally known, that Chinese culture includes three philosophical traditions – Confucianism, Taoism and Buddhism. Confucianism interacts with interpersonal relationships – ‘guanxi’, whereby Taoism deals with existence in harmony with nature, and Buddhism deals with people's immortal world (Fang, 2006, p. 52; Luo, 2000, pp. 12-15). Many people believe that these are types of religion, but as for Chinese, they are philosophies or teachings. Chinese can follow all three teachings, each for one aspect of his life. However, the most important philosophical tradition is Confucianism, as it is related to ‘guanxi’. Confucianism – ‘rujia’ – is a philosophical tradition that was founded by Confucius (551-479 BC). Confucianism becomes a system of moral ethic and guanxi. It is generally agreed (Fang, 2006; Kumar & Worm, 2003; Luo, 2000) that it includes eight basic values: loyalty, respect, kindness, love, trust, justice, harmony and peace. A person who want to maintain his or her face should obey there principles.#p#分頁標題#e#

There is a saying ‘to be a Confucian gentleman’ which means to place high value on trust and sincerity, cultivate morality, and, what is more important, show a profound capacity to make a deal without negotiating and make ‘win-to-win’ business solution (Oxnam & Theodore de Bary, n.d.; Wong & Loy, 2002). The Chinese negotiators commonly observe and evaluate the importance of ‘guanxi’ and trust between partners on the onset of negotiation, and then regulate his negotiation tactics in dealing with the other partner based on the Confucian principle of mutuality. Hence, it is a strategic importance to try to create and maintain an honest ‘guanxi’ and a high level of trust with Chinese partner. That, in turn, will lead to negotiations will take place in Confucian traditions which, in turn, will lead for the maximum profit for both partners (Brahm, 2007; Fang, 2006; Luo, 2000; Kumar & Worm, 2003).

Nevertheless, the challenges in this aspect took place. Australian Trade Commission (Austrade) (2008, para. 8) suggests their own way to overcome negotiation problems. Firstly, always try to find good quality independent legal and qualified advice before signing a contract. Secondly, use a competent firm to review all contracts, since failure to gain all information about a potential partner’s background could lead to serious difficulties. Third, halve your expectations, and double or even triple your time and budget. Finally, Chinese business people prefer to create a strong ‘guanxi’ before signing a contract, so, it is better to be prepared for harsh negotiations and to deal with ‘grey’ issues.

‘Guanxi’

When foreigners go to China, they usually have strong belief that doing business in China will be absolutely the same as in their countries. However, it is not true, and the first step to avoid failure is to receive an understanding of ‘guanxi’ (Fang, 2006). Therefore, ‘guanxi’ is becoming the first challenge that should be solved. Generally, ‘guanxi’ is used to describe interpersonal relationship in Chinese business world and appear to be the central idea of Chinese society (Luo, 2000). Luo (2000) also identified ‘guanxi’ as everything and as a complete trust. Chinese words for negotiation – ‘tanpan’ – literally means talk or discuss, while in Europe negotiation suggests slightly disagreeable meanings of conflict. Chinese associate business with ‘guanxi’, friendship, trust, and negotiation strategy is considered as cooperation.

To enter into Chinese trade or to start doing business in China ‘guanxi’ should be developed as it becomes a huge benefit for particular person. The concept of ‘guanxi’ is very vital in China. As for foreigners who are doing business in China, understanding and using ‘guanxi’ correctly means having right persons in specific places, in government, for example.#p#分頁標題#e#

As it is stated by Buttery & Leung “to build and sustain a position within a Guanxi network requires some knowledge of ‘renqing’ which is about the exchange of favours and ‘mianzi’ which is about the giving of face or enhancing of someone’s social status” (1998, p. 382). Fan (2007) pointed out ‘guanxi’ plays a role of the netwоrk among different people that work together. The careful development and diligent cultivation of ‘guanxi’ can reduce the risks to a minimum. This is especially useful for FIEs that operating in China.

To conclude, ‘guanxi’ is an important part of doing business in China and it is better not to oppose it. As a ‘Confucian gentleman’, the Chinese negotiator relies on mutual trust and benefit, avoid conflict at all means, and seeks “win-to-win” solutions for everyone to succeed. As for foreigners, to avoid challenges, they should follow one simple rule – accept Chinese traditions and try to understand their way of thinking.

Etiquette

Economists and politicians’ debate are endless whether China is different or unique. As foreigners come to China, they are facing some difficulties in communication, especially when there is a need to open business in China. The easiest way to overcome this challenge is to learn Chinese business etiquette. Under business etiquette, it is usually understood some rules of manner that made social interactions run more efficiently. Understanding Chinese business etiquette could not only help to win some minor points, but also, what is more exciting, to provide greater understanding of Chinese nation methods of dealing, and their motives (Plafker, 2007; Reuvid & Li, 2003).

2.1 Chinese business etiquette

At a certain level, business etiquette in China is becoming less important than it used to be. For instance, the rules of business etiquette among older generation are much more in place then for younger businesspersons. When dealing with older Chinese people matters of etiquette remain significantly important. It is not a secret that Chinese society gets used to a set of norms, rules, habits, symbols, and moral basis, which are different from the Western ones. For instance, Fang (2006) points out the number “8” is respected while the number “4” is disgraced because it is literally means death. Not following this simple rule would lead for losing business opportunities while doing business in China.

However, as for young people, communication with them flew in easy-going way due to they tend to be much less persistent and single-hearted than their elders are. This is because young people are more open to the ingoing expansion of western cultural influence. Foreigners, no matter how good their Chinese is, how well they understand Chinese culture and etiquette, they would anyway be categorized as outsiders. Any foreigners that come to China would be called ‘laowai’ or ‘waiguoren’, which literally means old foreigner or foreign country person (Plafker, 2007).#p#分頁標題#e#

Austrade (2008, para. 9), provides a list of some important Chinese business etiquette solution for foreigners. Firstly, to build up good business relationships and trust – ‘guanxi’ – that is very important in China it is expected to spend a lot of time at meetings and banquets with potential business partners. Secondly, business meetings start promptly and begin with introduction to the most senior person at the meeting first, followed by the others in descending order of seniority. Thirdly, the Chinese respect their elders, so showing of politeness for older person will reflect on signing a treaty. Lastly, and supposing the most important, is business cards exchange, literally ‘mingpian’. This act is the question of vital importance in China. The card should be translated (in both English and Chinese), and presented with both hands with the Chinese side face up. Plafker (2007) agrees in this respect with Austrade but adding that when meeting with some very-high ranking persons it is particularly appropriate to do so. He also added that it is better not directly put business card into the pocket, but vice versa – spend some time discovering it. Plafker (2007) also states that none of the above is the magic key for success.

In conclusion, business etiquette is very important question while doing business in China, but also none of this mentioned facts are the important keys to success. To “win” the Chinese you should be Chinese or be smarter, more impudent and dexterous.

Conclusion

The aim of this work was to highlight the main challenges among a vast variety of problems. The main are negotiation strategy and business etiquette. Combined together they create a great challenge, which is cultural issue. Without any doubt, these are exactly can be named main challenges of doing business in China. Tree main challenges cultural issues, business etiquette, and negotiation strategy were covered. The central place was taking by guanxi, as it plays a significant role of every single aspect. Both business etiquette and negotiation strategy with no doubt gave a full picture of problems in doing business and how to overcome some pitfalls that was faced.

“The keys to effective communication in any setting are to: understand guanxi; recognise and take note of cultural differences; and adapt negotiation strategy. In general, international marketers should place reputation at the centre of their corporate strategy, and focus single-mindedly on guanxi, especially its role in the forming of positive corporate-government relationships” (Fan, 2007).

“Whether or not a positive or a negative outcome occurs is very much dependent on the quality of the pre-existing relationship among the negotiators, a quality, that is perhaps best gauged through the construct of social capital. The three elements cultural issues, business etiquette, and negotiation strategy are not entirely independent of each other, but by the same token, they independently have a unique significance” (Kumar & Worm, 2003).#p#分頁標題#e#

It should be noted that detailed information could not be fully provided due to the limitation of words that can be used and a lot of information is lying outside the borders of this essay. This will lead for a possibility of future development in this area. This essay could be particular interested for people who are in planning to go to China, doing business China and for other purposes.