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Thread: Guiding Piece: Chinese Cultures vs. American Cultures

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[quote=MARRIE,305107]As previously explained a contract is only a superficially symbolic document which has no real legal or business value. Contracts in China are expressed through intangible relationships. The stronger and healthier the relationship, the more success there will be. I think that the idea of “social contract” can be used to explain how Americans approach this situation. The “social contract” is an idea which generally states that people give up certain rights in order to obtain social order. We represent these rights through a firm legal framework, social rules, and contracts. In China they have a “relationship contract” where the relationships, not law, are the guiding principles in society and business transactions.

Particularistic societies such as China focus more on relationships and believe that every situation is different and therefore behavior must be adapted accordingly. The company must be prepared to patiently deal with unexpected situations that will surely arise. The company must be flexible and bend the rules in order to satisfy business partners.

b) Individualism vs. Collectivism

Individualistic cultures focus on individual people first and the group second. From individuals a collective group can be formed. Social relationships are much more relaxed and flexible. Independence and self reliability are important. This of course leads to many individuals becoming self orientated, which can lead to positive things like innovation and the realization of personal ambitions but also negative things like selfishness and inability to cooperate. In short, ‘I’ is the most important word.

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