If you have been doing business with Mexican companies, you have an inkling of what doing business in China will be like. The countries have similar business cultures, most of which are diametrically opposite of American customs and culture, said Alberto Garcia-Jurado, CEO of Cultural Intelligence based in Mexico City and San Antonio.
Garcia-Jurado spoke on “When East meets West: negotiating with the Chinese” at a presentation hosted by the Small Business Development Center. He drew parallels between the Mexican and Chinese cultures, which revere relationships or “being” behaviors, in contrast to the American culture which rewards task-oriented or “doing” behaviors. Universal values are not, in fact, so universal.
Intercultural intelligence is knowing yourself and your opponent, counseled Garcia-Jurado. “Learn the steps to the dance your partner is doing” if you want to be successful. He strongly recommended reading the 2,000-year-old tome “The Art of War” by Sun Tzu for insights on strategy. Yet no strategy survives first contact with enemy/opposite, which is why you must have a Plan B and Plan C.
In some cultures, what is being said is not what is meant. Those cultures say no without actually saying the word “no.” They use intermediaries to avoid offense, conflict and loss of face. For many American business people, who are used to direct, straight-from-the shoulder responses, it is hard to digest the challenge of context. Yet, the Chinese, like the Mexicans, culturally avoid creating conflict. Knowing this aspect of their cultural behavior and learning to ready non-verbal signs is critical for grasping what is actually being conveyed.
An acknowledged specialist in managing strategic relationships within a company and without, Garcia-Jurado described five cultural dimension or behavior approaches and the contrasts between the American ideal and the Chinese and Mexican ideal of each. Power distance, the first dimension, is the acceptance of unequal distribution. Cultures that place a premium on hierarchy and respect for rank have a high power distance. Americans value hierarchy much less than the Chinese and view the current hierarchy as impermanent.
The second dimension is the culture of avoiding uncertainty and maintaining the status quo. Americans typically have a low avoidance culture; they more readily accept that change will occur and will be positive.
The third dimension, Garcia-Jurado explained, deals with collectivism versus individualism. Mexican and Chinese cultures support validation through loyalty and ties to a group. Americans, LinkedIn notwithstanding, value autonomy and independence. A maverick or a strong individualist can be lauded. On the other hand, group mentality is the norm for China and exemplified by the term guanxi, which refers to a network of loyalties. Business in China is done through guanxi. He recommends Americans trying to establish a business in China seek agents with links to relevant networks.
For more of this story by Eileen Mattei, pick up a copy of the August 2013 print edition of Valley Business Report or click on the “Current & Past Issues” tab on this Web site.