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Differences in Chinese private business compared to State-owned organisations

4 senior members from CRCC Asia, Bank of China, Active Anglo Chinese Communications and Davica HR gathered at a recent China Unbound event to discuss how we can build more successful cross-cultural teams and collaborations. Here are highlights of the event!

Q: Is there a difference between privately owned organisation’s in China and State Owned Organisations in terms of the way people behave?

“Yes I feel UK SMEs generally behave more like privately owned organisations in China and UK large corporates are similar to State Owned Enterprises (SOEs) in China.” Yintong Bester, MD of Active Anglo Chinese Comumnications says.

“Having said that, it is important to try to empathise and understand each company’s background that you are working with, and work out what defines success for them.” Edward Pearce, Director of CRCC Asia adds.

Particularly with SOEs, they might have some targets that are not necessarily related to making more money. It may be about keeping people employed or sorting out some other potential future problems.”

“On the other hand, for many small Chinese companies that I met that could potentially list on AIM, it’s the listing process, the successful listing, that is their success. That means either they got a big pay out or they got fleet of cars, or they got their new factory etc. It is not necessarily successfully running this business for 10 years.”

Bester further observes, “It’s not consistent, some companies you find they take a very structured approach, develop their business step by step, and very focused. Then with other companies, they come up with an idea and off they go! Chinese companies I have dealt with can be so different, they are less consistent than the companies in the UK in my experience. I feel it’s a transitional stage in China now.

To see how we can help you build your China business: Survival BUSINESS phrases – Mandarin taster on 25th September 2018 at 19.00.

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