How do they work in Shanghai?

Hierarchy and the need to build a relationship of trust in order to close business deals characterise the way of working in China and Japan, thanks to the influence of Confucian culture

The role of women is a pending issue in the Asian labour market
The role of women is a pending issue in the Asian labour market
Pau Garcia Fuster
13 de Gener de 2016 - 06:20
Act. 14 de Gener de 2016 - 12:34
Asia's largest powers, such as China or Japan, are some distance from Catalonia. And not only in kilometres. With the caution required when generalising about countries that can almost be considered continents, there are certain characteristics that define their way of working. "The barriers that exist are more cultural than economic. Highly-prepared people can fail spectacularly simply because of their ignorance of cultural differences," Jaume Giné, associate professor of Esade's law department, member of Casa Àsia and a fan of the continent told VIA Empresa.

Xavier Aubareda, Ficosa controller in Shanghai, has lived and worked in the Chinese city since 2008. "It is a completely different culture. Apart from the culture shock, the day-to-day challenges are more personal than professional. From eating to driving, until you learn to adapt it is complicated," he told VIA Empresa during his Christmas holiday in Catalonia.

From the start, Aubareda makes it clear that "China has to be seen as if it were a continent and not a country. From one side to the other is seven hours on a plane." It includes many distinct regions. "In the west are the Muslims, who do not eat pork. In Shanghai the food is very sweet. In the north in winter temperatures drop to as low as -30 degrees, and in the south, in Canton, fish is very popular and there is a strong relationship with Hong Kong," is his broad summary.

"There are many people who go to China and do not know that there are different languages," adds Jaume Giné. "In Beijing they speak Mandarin, in Shanghai Wu and in Canton Cantonese. Depending on the tone, a word can change its meaning. There are different languages, but only one script," he says.

When working in the country, Aubareda says that "the issue of language is important, but the key is to understand the culture." The Ficosa director says that he uses English on a daily basis, even though he speaks Mandarin Chinese. "For them it is like when a foreigner comes to Catalonia and speaks Catalan. It changes your opinion because you see the effort to integrate, even if it is not the most important thing." Whatever the case, Aubareda insists that "in the international sphere and large cities like Shanghai you have enough with English."

A solid hierarchy
"The way companies work is very hierarchical," says Xavier Aubareda. "The Chinese find it very hard to question the decision of a superior," he adds. After so many years working in China, he notes that "a lot of the time they will keep a question to themselves and make a mistake so that they do not have to ask. They are very respectful to their superiors."

This discipline can get to the point that, as Aubareda says, "if, as an employee, you ask for something from someone outside of their area of responsibility, you will be lucky if they help you. They are very focused on their own patch."

Jaume Giné confirms that these very hierarchical relationships are also seen in Japan. "Decisions are taken by the heads, and if you have a meeting with them you have to be sure who is who." The Esade professor insists on the fact that "they subdivide the work and each person only talks about their area. Reaching agreement in the west can be quick, and in the east it can be very slow."

The art of negotiation
Japanese and Chinese techniques of negotiation can be very distinct from what is usual in Europe. "One of the general principles of Confucian culture is social harmony. Asian Confucians, when you are with them, want to maintain harmony and balance by avoiding direct confrontation with others," Giné points out.

He insists that "they analyse issues cautiously and do not take quick decisions," and that "relationships of trust are key to doing business with them. It is not enough to have a good business proposal; negotiating with an Asian requires time, patience and persistence. The details are what can be the difference in whether a deal goes ahead or not."

On this point, the interpreter is very important because "when it comes to negotiating, they do not like dealing with specific issues and try to come to global agreements," says Giné. The expert in this subject says that "the law has not played a key role in Asian culture, it is based on personal relationships and not contractual ones. They have a tendency to keep on renegotiating as issues move forward. That is why it is very important to have a strategy when it comes to negotiating."

On this subject, he adds that "a Japanese does not want to improvise at all in the negotiations and focuses on the agenda." The Esade professor also says that "the silences are also important. They never say no, but that does not mean yes."

Order, punctuality and perseverance
"They are very punctual. Meetings begin and end at the set hour. If something comes up and you cannot arrive on time, you have to call and warn them," says Giné. "If they say they finish at 12, they leave at 12," he insists.

Jaume Giné also highlights the fact that "presentations and portfolios have to be impeccable, if possible in Japanese and at least in English." Despite all of these factors, he insists that "the advantage of having a Confucian partner is that, even though it might take a lot to get to know him, once you overcome the cultural barriers and establish trust, he becomes a very reliable partner."

Talking about the Chinese character, Xavier Aubareda compares it with the Catalan. "We find it hard to open a negotiation or set up a project. However, a good thing about the Chinese is that they will try out a business and if it does not go well they will start another. And if not, then another." That way, he insists "in the end you will find something that works."

Working like a Chinese?
In some cultures, a rather disrespectful expression is "to work like a Chinese", alluding to their untiring capacity for work. Jaume Giné points out that "most Chinese are not religious and business and making money is in their DNA." He says that "they find it hard to take a holiday, but as they increasingly have consumer societies, they will need more time off in order to consume." The Chinese new year is "a week in which they consume the most and they have a few days off when everyone goes back home."

For Aubareda, after a number of years working in the country, "the expression to work like a Chinese is partly true." He confirms that the government "has tried to promote the domestic market so as not to depend so much on exports, and it has done so by improving social security and making it so that people do not have to save so much." According to the Ficosa head, "they can now spend their money on a new car they like a lot. They increasingly take more holidays, especially if they work for international companies."

The role of women, the pending issue
On the role of women in the labour market, Aubareda says that "they still have some way to go to get to the Catalan level." He says that the role of women in society is conditioned by cultural factors. "China is like Spain 20 or 30 years ago. They get married when they are 20, they have a child at 22, and in most cases women are the ones who take charge." However, he adds that "in large cities women also work, and they leave their children with their parents. Yet, the one with the important role at work is the man."

Meanwhile, Jaume Giné says that both in Japan and in China "the presence of female directors is a shock when they deal with foreign companies, but they are getting used to it." For the Esade professor, "they have to understand that in the west women are already everywhere," and he says that "in Asian cultures the role of women is underrated. Women achieve the best academic results, but when they get married and have children they give up work, and later, at the most, they go back to working part-time." In all, he laments the fact that "the role of men continues to be based on the hierarchical order."