2010年慧眼中国环球论坛奖学金得主优秀论文选

通商中国的宗旨为造就一批双语双文化的人才,因此在首届慧眼中国环球论坛颁发了奖学金给10位本地大学生。每位奖学金得主获得S$3800的赞 助参与2010年慧眼中国环球论坛(7月12至13日)。从中,他们除了聆听到各界高端领导的睿见同与会者交流之外,也有机会参加通商中国12月举办的北 京冬令营。奖学金得主必须撰写一篇文章,叙述他们在慧眼中国环球论坛的心得与感想。最佳5篇文章作者将有机会在12月同通商中国青年组到北京浸濡。
以下是通商中国筛选出的最佳5篇文章 (不分排名先后):
  • 分析天时、地利、人和因素对中国发展路线图的影响
    曾繁锐
    新加坡国立大学商学系
  • 中国城市化—贫富差距与中国的未来
    林伟
    新加坡管理大学经济与商学>系
  • 中国共产党的凝聚力与国家资本主义的兴起>
    陈泰元
    新加坡管理大学会计与商学系
  • 了解中华文化与西方文化的不同
    陈庆贤
    南洋理工大学工程系 
  • 剖析“关系”对中国的影响
    杜秀慧
    南洋理工大学商学系

分析天时、地利、人和因素对中国发展路线图的影响
曾繁锐, 新加坡国立大学商学系
Evaluating China’s current position to identify a roadmap for its future development
By Chan Fun Ruey, National University of Singapore

 

Based on World Bank’s recent update on China, the country is expected to grow at a blistering pace of 9.5% for 2010. However, as China emerges into the 21st century as a global superpower, it faces a myriad of problems. Recent spates of suicides at the southern province of Guangdong highlighted the inherent gulf between economic development and wealth distribution. The oil spill in the port city of Dalian is just one of the many environmental problems that China is facing-with many more cases waiting to implode. Even on the global stage China faces increasing pressure to live up to its economic status given the threat of nuclear armed North Korea and Iran. So how can China hope to overcome these problems and continue on its path to prosperity?
Interestingly, the answer lies within the ancient wisdom of Chinese philosophers and strategists. In order for a country to develop successfully, there is a need to secure 3 objectives: “天時,地利,人和” which means to grasp the right opportunities, to secure the land and to win the hearts of the people. This article will aim to evaluate China’s current position based on the above 3 factor and perhaps identify a roadmap for China’s future development.

Grasping the Right Opportunities

Based on current trends of growth, China is likely to overtake Japan as the world’s second largest economy by end of 2010. Economic development aside, China is also increasingly influential in terms of world politics. China is now one of the major investors in Africa hoping to develop the abundant natural resources on the continent to feed its ever growing need for supplies. China is also a permanent member of the United Nations (which grants it veto powers over UN policies) as well as a member of the WTO since 2001. The recent fiasco in the climate summit in Copenhagen also highlighted China’s ambition to stand toe to toe (on certain issues) against the developed world.

Like celebrities that are suddenly shone into spotlight, China is now subject to the scrutiny of the entire world. Yet many of its policies remain bounded to an outdated mode of thinking. China remains politically entangled over contentious issues in North Korea and Iran. While the world condemned the sinking of the South Korean warship Cheonan, China remains defensive of its erratic ally. While the UN continues to highlight human rights issues in the dictatorial governments of Africa, China refuses to change its “no strings” aid to these nations. These issues highlight the need for China to change its strategic thinking of its foreign policy to fit that of its economic status. The country is no longer the same country that failed to feed its population in the 1960s but one that feeds the world with its industrial production capabilities. China’s actions now have a severe impact on the world (some economists even predicted a double dip recession for the world should China’s economy stall). It needs to sit up and understand the opportunities (as well as threats) that surround it in this new world order.

Joseph Nye from Harvard University wrote about the importance of soft power in his book titled “Soft Power: The Means to Success in World Politics”. In it he described the rise of America into a global superpower based on both the input of Hard (Economic and Military) and Soft power (Cultural and Ideological). No one can doubt that nuclear armed China has plenty of the former (its military spending is only behind the US). Now China needs to explore ways to increase its cultural and political influence over others without the coercion of force or rewards. China needs to understand that the world now looks to China as a potential role model as well as a substitute for American power. It can no longer act in a self-centered manner like it did in the various international situations mentioned above. The world cannot respect a country that supports leaders whom threaten the lives of its citizens as well as others. The world cannot accept a country that refuses to make difficult but crucial decisions especially in organizations like the UN. The world cannot wait for a country to slowly play second fiddle to other powers when so many critical decisions rest on it. China needs to move instead of be moved. Only then can it truly grasp the opportunities brought to it by its own labor. If not, China will remain a distant country forever remembered as secondary nation compared to the United States.

Securing the Land

External problems aside, China is also facing a host of internal issues. One such issue relates to its “land”. Rapid economic development for the past 20 years has presented a number of problems such as increasing pollution as well as scarcity of resources like water and arable land. It is estimated that close to 70% of China’s water supplies are polluted and that many of China’s own citizens lack access to clean drinking water. In addition, increasing urbanization in China based on a recent report by Mckinsey and Company would further worsen the supply problem. As water is the source of life (for both people and industrial production), China’s continued development would depend on its ability to ensure that scarce resources are accessible to those that need it.

Water issues aside, China also faces a host of other environmental issues. China has just recently surpassed the US as the top energy user in the world and energy demand is forecasted to grow rapidly together with development. In addition, China is also the largest carbon emitter in the world based on the UN CDIAC report in 2008. Global sanctions and restrictions aside, increasing pollution will become a great threat to China’s rise as a superpower. Health problems due to the environmental pollution will reduce the productivity of its people and increase the cost of healthcare in the long run. Degradation of the land will give rise to sandstorms, weather anomalies as well as devastating floods of which all will result in costs to the government. Poor environmental conditions are also likely to reflect badly on China’s major cities hence reducing their global competitiveness in the battle for global talents. While the costs are not immediate, China needs to be wary of the long run implications of its development in order not to sacrifice sustainability for growth.

Winning the People

While China has both the financial resources and capability to overcome the above two issues, the hardest problem to overcome would be the task of winning over the minds of its people. Great nations are born because its citizens believe in its way of life and are proud of what their nationality represents. While the majority of Chinese remains proud of their country, their political support for the ruling communist party remains to be seen. As information and communication technology advances (China has more internet users now than the population of US), the Chinese government will find it increasingly hard to suppress dissenting views as well as retain control over the masses. Recent strikes at the Foxconn and Honda factories in Southern China demonstrated the emerging willingness of the people to go against the norm (Strikes are rare in China as almost all workers are part of the national union).

The government needs to balance carefully the need to ensure social order with overly repressive controls. In addition, corruption inherent in the system of local governments must also be carefully watched as many of these problems are reflected directly onto the ruling party. While allowing Western style democracy might be impossible in China, the government should still find ways to increase its connection with the locals in order to truly understand its people. Most of the current provincial system lacks a check and balance with the central government as there is an excessive focus only on the developing cities like Shanghai and Guangzhou. Recent events in Chongqing over the execution of a corrupt official may have signaled an intention to change but the fact remains that most of China’s other provinces and counties remain under-governed. In areas where ethnic minorities live in, this might become a spark for future conflicts within China.

Looking Ahead for China

The future is both bright and challenging for China. As it rises into an economic superpower, it must realize that “great powers come with great responsibility”. China will increasingly need to take charge of global events as well as negotiate global consensus (something which even the US finds difficult to achieve sometimes) over thorny issues. In addition, China also faces internal problems like rising resource constraints, increasing pollution as well as difficulty in governance. Only after China has successfully navigated its way around these problems can it truly call itself a true global superpower.

中国城市化—贫富差距与中国的未来
林伟, 新加坡管理大学经济与商学系
China’s Urbanization: The Rich Poor Gap and China’s way forward

By Lim Wei, Singapore Management University

 

1. Introduction: A tale of two worlds

Driving from the remote outskirts of Shanghai into the city centre, Chen, a middle-aged Chinese worker, cannot help but notice the stark contrast between the lives of the urban rich and the rural. From the types of houses to the amenities available, there were little elements of similarity he could find. It was as though he had just passed from an underdeveloped country into another far more advanced nation. The only problem was that both these seemingly separate regions are all part of one country – China.
The phenomenon that Chen observed is a recent and emerging one. A few decades ago, everyone in China was almost equally poor. Today, China has climbed steadily, boasting consistently high growth rates to emerge as one of the biggest economies in the world. Yet, in spite of its tremendous progress, a deep gulf has emerged within the country that threatens to destabilize China’s progress – growth is unevenly distributed across different regions. The South-Eastern province of Guangdong for example produces more than ten times the output as compared to the province of Guizhou as of 2009.

2. Current situation: What measures have China adopted

Such disparity is now recognized by the government as a key problem. During the FutureChina Global Forum held in Singapore, Wu Jianmin, executive vice-chairman of the China Institute for Innovation and Development Strategy, spoke of problems such as the widening rich-poor gap and differing development paces between China’s eastern and western regions[1].
The Chinese government has confronted the challenge and responded in big ways to this disparity.

Recognising that geographical separation between provinces may hinder investment flows into inland China and the looming possibility that provinces relatively isolated may view themselves as separate states, the government has embarked on massive construction projects to connect China. One project that is ongoing is the 7-9-18 scheme – the most ambitious road-building project in world history. Comprising seven expressways starting in Beijing, nine north-south routes, and eighteen east-west routes, it will stretch 53,000 miles and is due to connect every city by 2030[2].

Working on hardware to connect the Chinese people is only one side of the story. The government has also attempted to unify them by working on their hearts and minds. The 2008 Beijing Olympics that achieved unprecedented rousing success, brought hundreds of millions of Chinese together by appealing to their traditionally strong spirit of nationalism and pride. Plans for more magnificent infrastructures are on the books, such as the bid to build the world’s tallest building in Shanghai. In China, nationalism is always present[3]. The government has tapped on this spirit to rally the nation under the same flag.

Yet, in spite of the many measures by the Government beyond what was mentioned above, rapid urbanization continues to fuel greater disparity between the cities and the rural regions. Consequently this internal gulf cumulates into deep unhappiness and resentment in a large part of China that has not had their share of the growing prosperity pie. Elizabeth Economy, director of Asia studies at the US council on Foreign Relations warns that such disparity may compromise the will to cooperate to further economic growth on the ground level. Stable growth cannot happen when a significant group of people within China are against it. This prompts China to seek better ways for harmonious living in China between the rural and the urban, the east and the west.

3. Looking ahead: What measures can China adopt

The key question to answer is, what else can China do to promote harmony amongst the different rungs of society? There is an ancient Chinese saying by a widely respected philosopher Confucius that says, “By three methods we may learn wisdom. First, by reflection, which is noblest; second, by imitation which is easiest; and third, by experience, which is the bitterest.”
We shall adopt the first method which is noblest by reflecting on the experiences of other countries, namely Singapore and future key trends to derive principles that can be applied in driving China forward in unity. In the words of Minister Mentor Lee, “How can a population of four million teach a population of 1.3 billion how to eat rice?”[4] Yet, the Chinese people have shown humility and adaptability, picking and choosing what works for them from different civilizations. None in today’s world stage can instruct the Chinese, but all can share valuable lessons with China so that her continued prosperity will uplift the world with it.

3.1 Lessons from Singapore
Singapore was born out of chaos. When the current Minister Mentor Lee Kuan Yew took over as the then Prime Minister, the country was impoverished and racial riots abound. None can imagine that harmony and prosperity would be the hallmark of this island state in the twenty-first century. Yet, even within Asia’s most livable city, it is not surprising to find households that subsist on a few hundred dollars monthly income living a few miles away from a rich household that owns a few private estates.

Contrary to the general belief, the key that brings Singaporeans together is not the equality in incomes but the equality in opportunities and care for the rich and poor alike. For the poor household, avenues such as the weekly meet-the-peoples session that government officials conduct personally provide them financial assistance with schemes such as “ComCare” and “ComFund” and sometimes even job-seeking opportunities. This reduces the distance between the government and the people giving them the right to their own lives and fates. More importantly, this gives a revelation to even the poorest that they are part of the Singapore dream and it is within their reach to build a sustainable living for themselves in the future.

3.2 Lessons for China
To allow the Chinese people to share in her growth would mean taking care of those who are currently left behind.

Equality in education for balanced growth
The Chinese government should consider funding more educational opportunities for all provinces, in particular those in the western and central parts of China. Currently, two-thirds of the total expense of education is borne by the government, but the remaining burden falls entirely on the local communities which differ widely in wealth. Such an arrangement presents inequality problems when we consider how in rural areas, residents only earn about one-third that of the urban citizens[5]. As a result, many rural residents struggle to pay the education bill. Recognizing and directly tackling this issue on a national level is good but inadequate. Very often there is a gap between policy rulings and implementation on the ground. The better way to close this gap would be to significantly tweak the incentive scheme for provincial governments such that they are not evaluated heavily on GDP performances but also on other indicators such as the availability and quality of education.

Reformation of the hukou system
Another reformation should be targeted at the hukou system. Hukou – identity cards – are issued in the town or city where a person is born. The hukou system prevents people from rural areas from enjoying the benefits such as insurance, housing, and education that are provided to the local urban population[7]. Hence, within a city, we find two classes of citizens: locals being the high-class citizen and rural migrants viewed as the lower class. Consequently, migrant workers that leave the rural regions in search of better job opportunities to support their family back home are denied of services that locals enjoy free, and as such struggle to make a living even within tier one cities. A system that constantly discriminates against another group within the same country will only lead to suffering and then hatred for the privileged group. Reformation of the hukou system is necessary with the increasing trend of urbanization to provide greater equality and harmony amongst the Chinese people.

Top-down making room for bottom-up forces
Since the beginnings of history, China has traditionally been a hierarchical society where implementations flow top-down. Today, with China progressing at different rates and every province having its own local government; James Hexter, director McKinsey & Co commented “There is no one China.” With its current diversity in cities, it is simply impossible for top-down implementations that originate from the national government to take into account the lives of every single citizen equally. The new order calls for a bottom – up approach across China to give the people the power to shape their lives. This has been experimented in the village of Shaungxi in Zhangzhou City that has established a program called “Sunshine Village Affairs.” It means, “Let the daylight in so I know what is going on.”[8] The program aims at empowering farmers with the right to know and manage the village affairs which help advance control and harmony within the village. In a broader context, more provinces should undertake monitoring groups build from the people to allow greater communication between the people and their government. If done in a controlled manner, greater harmony can be expected from a people who know and have a say in the laws and policies that govern their lives.

Adopting best practices from even the smallest
Singapore has prospered in harmony with policies and implementations such as equal education opportunities, equal citizen rights and the narrowing of distance between her people and the government. China can do the same.

4. Future Trends: What it means for China

Looking ahead, China will only become more globalised. The influence of the West will stretch beyond the current tier one and two cities and make greater inroads into the other parts of China. With that comes an erosion of traditional cultural values and practices. In light of these external influences, the Chinese people will experience a gradual loss of identity and will attempt to answer the most fundamental question humans can face: Who are we? According to the Clash of Civilizations the Chinese people will answer that question in the traditional way human beings have answered it, by reference to the things that mean most to them. People define themselves in terms of ancestry, religion, language, history, values, customs, and institutions[6]. As such, with increasing urbanization and exposure to western influences, the Chinese people will need a “place of refuge” when confronted with elements that seek to erode their sense of identity. This “place of refuge” will perhaps come in the form of urban Confucianism[9]. It is difficult to define urban Confucianism for the Chinese. The definition can only be carved by the Chinese themselves as they retain what works for them from tradition, foreign influences and the mainstream culture.

5. Conclusion: Cross the bridge by feeling the stones

There is a Chinese saying, “摸着石头过河”, meaning to cross the bridge by feeling the stones. This has been the way that China has been growing since the era of premier Deng. China believes in experimentation and gradual transformation as it seeks its own path in this world. No country in the history of mankind has had such a huge population and immense wealth accumulated in her currency reserves ever. In finding its own path to narrow inequality and grow the country, China seeks to learn and adopt any practices relevant to them – from both the largest and smallest of countries. Today, China presents herself as a new and changing paradigm faced with hard choices that could radically change her landscape and the world with it. How would Chen (the middle-aged driver in the top part of this paper), or in a broader context, the Chinese people view their country ten years from now. It remains to be seen how that would unfold.

References
1) Felda, C., 2010. How China can allay fears of its rise. The Business Times, 13 July. p.10.
2) Edward, T. (2010) The China Strategy: Harnessing the Power of the World‟s Fastest- Growing Economy. (pp. 67). New York: Basic Books.
3) Robyn, M. (2007) The Elephant and the Dragon: The Rise of India and China and What It Means for All of Us. (pp.149). United States of America: W. W. Norton & Company, Inc.
4) Ning, T.S., 2010. MM Lee: Invest in China with confidence, guanxi. The Business Times, 13 July.p.10.
5) Jonathan, R.W. (2006) Checking China’s vital signs: The social challenge. (pp.19). The McKinsey Quarterly.
6) Samuel, P.H. (2002) The Clash of Civilizations and the Remaking of World Order. (pp.97). United Kingdom: The Free Press.
7) John, N., & Doris, N. (2010) China’s Megatrends: The 8 pillars of a new society. (pp. 187). United States of America: HarperCollins Publishers.
8) John, N., & Doris, N. (2010) China’s Megatrends: The 8 pillars of a new society. (pp. 55). United States of America: HarperCollins Publishers.
9) Rachel, C., 2010. What China needs is “urban Confucianism”. The Straits Times, 14 July. p.B4.

中国共产党的凝聚力与国家资本主义的兴起
陈泰元, 新加坡管理大学会计与商学系
The Unifying Force of the Chinese Communist Party and the Rise of State Capitalism

By Nicholas Chan Tai Yuan, Singapore Management University

The grand opening of the 2008 Beijing Olympics had wowed the world; the press declared that it was the best ever Olympics opening show. Besides the spectacular eye-feast, the dazzling performance is also a showcase of China’s power and apparent unity. For the mesmerizing moment during the show, one may have forgotten that China is a country with huge internal differences.

China is like a world on her own. The country is big, chaotic, sprawling, separate and continental. Although most citizens are Han Chinese, there are many different minority ethnicities and different types of spoken Chinese dialects. Besides religious and ethnic contentions that arise from time to time, rivalries exist between provinces and each province tries to outdo the other in terms of economic performance; good performance brings about promotions for the officials and a chance of admission to the Beijing Central government. Yet despite all these differences, China appears to be a very powerful and united country; which I believe is largely attributable to the rule of the Chinese Communist Party (CCP).

About a decade ago, I recalled hearing much hype about the two awakening giants in Asia: China and India. Commentators then were mentioning about how both countries would rise to challenge the largest economies: United States and Japan. Today, China has overtaken Japan as the number two economy in the world and there is still much excitement about China. However on the Indian side, the excitement seems to have died down somewhat. During the FutureChina forum, one of the speakers mentioned that when he goes to India, he hears everyone talking about China and benchmarking themselves against the Chinese; but when he goes to China, no one talks about India. The reality is that China’s growth over the past decades has far outstripped India; the Chinese no longer regard India as a competitor in the same league.

True egalitarian Communism died in China when Deng Xiao Ping introduced “Socialism with Chinese characteristics” to transform China into a socialist market economy in 1978. It is this market socialist economic system together with the CCP’s direction and control that China can be what she is today. Long term strategic centralized planning by the CCP has resulted in the building of infrastructure and creation of institutions that are integral to the Chinese economic boom.

China’s authoritarian political system means that Chinese politicians do not have to be concerned with elections and re-elections; they can be focused on the running of the country. This is in contrast to India’s democratic political system; Indian politicians have to be put in time and energy to get themselves elected and re-elected to be in a position to effect change. Much of an Indian politician’s attention will be caught-up with elections and pleasing the people. They may be reluctant to implement tough policy changes that though hugely beneficial in the long run, are unpopular among the citizens in the near term.

China’s 10% Gross Domestic Product (GDP) average growth rate over the past decade far surpasses India’s 6% GDP average growth, and it is not only economically that China is ahead of India. Despite Deng Xiao Ping’s reformist saying of “let some people get rich first”, China still has a lower Gini coefficient (lower income inequality) than India today. China also has a higher literacy rate and more females in the workforce than India. Though far from perfect, China’s market authoritarianism seems to be working well relative to India’s democracy in building a nation.

The Great Financial Crisis has further thrust China’s market socialism and state capitalism into the limelight. The problems in the West have shown the world that unbridled capitalism has its pitfalls. People have begun to question whether the western style capitalism is the way forward. As the world strives to recover from the Great Financial Crisis, state capitalism is becoming commonplace even in the West as public funds were used to buy over ailing financial institutions and governments demand greater regulatory oversight and influence in existing financial institutions.

China poses a challenge to the United States not in terms of economic prosperity or military power (Although China’s GDP and military spending are growing much faster than the United States, the United States is still way ahead.), but rather in terms of ideology. The ideologies of democracy and pure capitalism that United States represents and have been advocating as the best way to run a country are called into question. China’s market socialism and state capitalism have risen as viable alternatives for other countries to adopt and mimic as opposed to the democracy and pure capitalism of the United States.

The average Chinese on the street does not ask for western democracy. He wants wealth, personal liberty and the rule of law. The CCP has done well in the first and most important aspect: to increase the wealth of the average Chinese by maintaining high GDP growth. The CCP had announced that it needed to grow China’s GDP at a minimum of 8% per year to maintain social order.

The average Chinese first and foremost desires wealth, and the CCP has been able to hold him captive by controlling the Chinese economy via State Capitalism and the dominance of state owned enterprises (SOEs). With State Capitalism, the CCP controls the most important industries in China, industries where the greatest economic opportunities also lie. Instead of being ashamed of the lack of democratic progress in China, brilliant young Chinese are clamouring to join the CCP and to establish careers in prestigious SOEs; they are pathways to economic success and prosperity.

There is a sense of pride among Chinese that their country is on track to take her rightful place of power in the world. The Chinese want to be respected; and with China’s rise, the world will have to give the Chinese his due respect. The Chinese embraces the thought that the Chinese model of “Socialism with Chinese characteristics” is superior to western style democratic capitalism. The world has to contend with that.

As I end this essay, I cannot help but be cognizant of how similar China is to Singapore except for the fact that Singapore is a democratic state. The People’s Action Party being the sole dominant political party, economic prosperity being key in Singapore’s culture, the significant share of Singapore’s SOEs in the economy, the best and brightest wanting to join the Public Service Commission and work for institutions like SIA, Temasek, etc, all reflect the situation in China. In the dinner dialogue, Minister Mentor Lee Kuan Yew replied someone in a rhetorical question asking how Singapore being a small country could advise such a large country as China on her affairs. I suspect it is more than mere coincidence that the situation in China reflects that of Singapore so closely. I believe the Chinese have already learned much from Singapore and having implemented what they learned, they are currently reaping the dividends. Hopefully in time to come, the CCP will grant the average Chinese citizen personal liberty and strengthen the rule of law in China as is the case in Singapore.

了解中华文化与西方文化的不同
陈庆贤, 南洋理工大学工程系
Understanding China Chinese and Western Cultures (A Challenge)

By Tan Kheng Hiang, Nanyang Technological University

 

In the 21st century of globalization, the world has shrunken. The modernization of economies and countries has never been more rapid in history. With competition between countries intensifying and problems such as environmental conservation and terrorism facing the world, there is a huge impetus to establish working communication between people from all cultures and enable cross-cultural communication. The world is made up of infinitely diverse cultures, some that are specific to a family unit while some can be all encompassing at a national level.

Modern China Chinese culture can be attributed to the foundation of religion and philosophy of China and the exorable influence of Western cultures in recent years. Chinese traditional philosophy and Western philosophy are two independent and yet interrelated philosophical trends in the 20th century cultural world. The difference in China Chinese culture and Western culture can be derived from religion and philosophical origins of the two different great civilizations. Chinese philosophy has its own characteristics as an important part of chinese culture. Confucianism, Taoism and Buddhism are three major schools of chinese philosophy. Among these Confucianism is the main one as it played a leading role for more than two thousand years from the Han dynasty to the revolution of 1911 [1]. Taoism and Buddhism prospered only at one time and their role and influence never surpassed those of Confucianism. As a foreign culture and religion originating from India, Buddhism could not have taken root and exerted social influence in the chinese cultural world unless Buddhism, Taoism and Confucianism have been assimilated and fused with one another. Hence, Confucianism and Taoism are synonymous with Chinese traditional philosophy, with the former being a principle representative of Chinese traditional philosophy.

The Western culture is different. The Western culture is a culmination of legacies of the Western Roman Empire and the Eastern Roman Empire. Later, ideas of the west were formed by the concepts of Christendom and the Holy Roman Empire giving rise to today is generally defined as Greco-Roman and Judeo-Christian culture, and includes the ideals of the Renaissance and the Enlightenment. Most of today’s Western culture is influenced by the Bible and Christianity.

The unique nature of China Chinese’s culture and Western culture give rise to differences in the two cultural outlooks and behaviors between a China Chinese and Westerner. In many ways, be it behavioral, rites, mental scripts, stereotypes, traditional and etiquettes, the contrasting differences in culture of both societies can be identified. The type of cultural behavior can be broken down into five main categories of the cultural value continuum – individualism versus group, equality versus formality, task versus relationship, directness versus indirectness and competition versus harmony [2].

Individualism in a Western society is more pervasive in the western societies such as America. The Western societies are loosely integrated; they look after the self-interests or immediate family. They are inculcated to speak one’s opinion, as a matter of expectation and they cherish individual thinking. Also they assume personal responsibility for decisions and are quick to decide. Unlike the Western societies, a Chinese society is tightly integrated. They look after in-groups or extended family, they emphasize on keeping in contact with extended families. Chinese tend to enjoy gathering with family and friends, solving their problems and know each other’s business. In a China Chinese society, the parents seek to provide the whole life for kids, who are the centre of their life. The mental script of Chinese is to achieve in groups and prefer deciding by consensus.

As for equality versus formality, societies in the Western countries emphasizes on equality. At work place, an ideal boss is resourceful democrat and they do not believe in centralized authority. The responsibility is shared among the team. The employee addresses the boss by his first name, and they state their opinions regardless of status. A Chinese society emphasizes on formality. Formality is generally obvious in most Asian societies, example Korean, Japanese and Indian societies. Like Asian societies, the Chinese society accepts and expects power is unequally distributed. The employees consider status before giving opinion; defer to those with higher authority and experience. For example, they use titles or honorific language such as ‘Manager (老板)’ to address superiors at work place. Unlike the Western societies, the Chinese societies believe that the ideal boss is a benevolent autocrat.

Another key cultural value continuum is task versus relationship. Westerners believe that work and private life are separate. The task assigned is important and relationship-building is not necessary or a waste of time. They are problem-centered and pragmatic. However in a Chinese society, the work and private life are strongly linked. Successful work relationships are built on trust and having a strong relationships first. Compared to the western society, most of the business in a Chinese society is built upon family ties and network. As noted by Minster Mentor Lee Kuan Yew, doing business with government officials, businessman and entrepreneurs in China emphases on ‘connections (系)’.

The forth cultural value continuum, which is the most obvious contrast of the two cultures of interest, is directness versus indirectness. The Westerner strongly believes that direct to-the-point style is efficient and will get the job done. The indirect style may seem weak or dishonest when a Westerners converse, they speak to the point, whereas in China, Chinese speak around the circle if opinions are different. The degree of directness and indirectness, affects how a person approach a problem or initiate an action. Chinese tend to be indirect- speaking their opinion only when they feel secure and avoid potential disagreement, while for the westerners, they approach problem or speak their views openly where hesitation which may seem offensive or proud. In contrast to the Chinese, a direct style may seem abrupt, superficial, childish and unnecessarily blunt or even offensive.

The last cultural value continuum that describes the cultural differences between a Western and China Chinese society is competition versus harmony. The westerners value assertiveness, individuals should express and defend their own ideas, personal performance and achievements are primary. A person is judged on what he or she has recently accomplished. They are more expressive in group work where achievements or resources are at stake- “The squeaky wheel gets the grease”. For a Chinese society in China, the Chinese people value people first and focus on feelings or impact on others. They express and defend ideas that might disturb others. A person is judged on being a team player- having effective relationships where others do not lose ‘face (面子)’. Emotions are more controlled and subdued in groups – “The nail that sticks up gets hammered down”.

Even with today’s intensifying conflux of China Chinese and Western cultures at a level never seen before in the history of mankind, the fundamental differences between the cultures of the two giants can still impede future cooperation and promote distrust between the two during times of disagreement. By acknowledging the existence of cultural difference between the two societies- western and china, better cross-cultural harmony in communication between China and western societies can exist [3]. In my opinion, there are three main cultural phenomenon to address when two different societies try to integrate or understand each other. The three main cultural phenomenon are stereotypes, prejudice, and ethnocentrism, which arise due to cultural differences, and can create problems in cultural communication between the two group of people. The solution is to make efforts to overcome two main cultural barriers to allow for cultural communication.

The first barrier is language. America and other western countries of today have incorporated English into their societies, but for China the medium of language used remains as putonghua (普通话). Language is the most fundamental instrument for cross-cultural communication. Being proficient in language is important in the sense of basic communication channel and fundamental to build reliable connections with other people. It is encouraging to see that China education system has began to implement english classes in weekly curriculum of primary and secondary school level. On their part, the Western countries for example America, has began to promote mandarin language class in their schools as well. Aside from verbal communication, non-verbal communication such as gestures, posture and other ways people show what they feel and think without speaking are equally important. Non-verbal communication has less impact than verbal communication but it is clear indicator of the speaker’s intentions; it can reinforce a statement made or betray the speaker’s genuine feelings. To cross this barrier, one has to be self-aware of one’s own cultural make-up and avoid stereotypes and prejudice to be socially aware of the norm in the society he or she is in.

The second barrier is the tendency to evaluate and judge behavior from a different culture as good or bad, which is often re-enforced by prevailing stereotypes. It is a human tendency to try to derive conclusion and judge a fellow person, to make order of the chaotic environment around us. Stereotyping by the Westerners on the China Chinese and vice versa is an undeniable societal existence. Some stereotypes are however untrue, as among China Chinese (or Westerners) there are a plethora of people from all walk of lives and infinitely diverse characters. Instead there is a need to be aware of one’s stereotypes, acknowledge that societal stereotypes does not represent individual, and one should respect the individual by his action and interaction. To overcome this barrier one need to seek to understand the diverse message systems, seek to develop empathy and encourage feedback. If a discord occurs, consider the physical and human settings, ask oneself ’is it fair?’ Instead on dwelling on the differences, both sides should press on to put aside self-perceived superiority that they harbor of each other, identify common interest and expand on positive similarities.

In conclusion, there are many differences in cultural value between China Chinese society and Western society, some are more contrasting than the others, some are more subtle while others are ingrained. With concerted efforts by people from both sides, perhaps there will be a greater understanding between the China Chinese and Westerners (Americans) by promoting and practising excellent inter-cultural communication. Overcoming this cultural difference on a governmental level can be achieved. A mandarin quote by Jon Hunstman, “Together we work, together we progress.”

Sources:
[1] The ‘Great Triangle ‘of Chinese Philosophical Academia and the Modernization of China: Reflection on Chinese Philosophical Trends in the 20th Century. By Huang Sing Jie. Chapter 7. 18 Mar 2009.
[2] Culture http://www.tamu.edu/classes/cosc/choudhury/culture.html
[3] Explore Culture Exercise, stories and synthetic cultures by Gert Jan Hofstede, Pual B. Pederson, Geert Hofstede, 2002.

剖析“关系”对中国的影响
杜秀慧, 南洋理工大学商学系
关系 GuanXi in China

By Toh Xiu Hui, Nanyang Technological University

关系 (GuanXi) is a rather hyped word that may appear in one’s mind when rummaging through the complex folds of Chinese culture. This Chinese word holds the literal meaning of “connections” and is conjoined to the notion of building relationships. In business culture, GuanXi is understood as a network of many parties that cooperate and support one another by exchanging favours voluntarily.

Establishing the right GuanXi with the relevant authorities is often part of the long-term competitive strategy of businesses operating in or with China. By spending time and effort to nurture the right GuanXi in China, businesses are often rewarded with favours from their partners and the valuable effects are compounded as contracting barriers are considerably reduced.
Taking the issue to a deeper level, do networking and GuanXi have interchangeable roles in the
business context? Indeed, connections are important in any business around the world and networking brings about these necessary relationships. The difference with GuanXi in the Chinese culture is that it takes on a personal level in relationships and entails 信(trust) between the parties involved. It is about mutual understanding, and favours are exchanged based on emotional connections on top of business interests. By establishing GuanXi with other parties, an implicit agreement is made to readily reciprocate and do the other party the promised favour, when the need arises.

During the reign of Chairman Mao, China’s economy was heavily regulated and controlled by the government. Everyone would be allocated a slice of the pie. Before economic reforms took place in the late 1970s, there were no market forces or capitalistic ideas to drive businesses in China and most of the transactions were initiated and completed through the GuanXi system. Since most business entities were state-owned, it was often required by interested parties to establish GuanXi with officials in order to initiate a contract. Most often, this act of creating connections to complete a task is referred to as 拉关系(La GuanXi) or the act of pulling strings. During this period, GuanXi proved to be the vital and indispensable condition to conduct business in China.

As the economy becomes substantially deregulated and competitive, the effectiveness of GuanXi has deteriorated tremendously as compared to the past. Performance indicators gradually supercede personal relationships. However, this does not undermine the importance of GuanXi in its entirety as it still plays a crucial role in facilitating business transactions and excavates the route to possible business insider information. Even though GuanXi alone is no longer sufficient to land a company a good deal, it provides companies with good GuanXi better opportunities to excel when competing with rivals that are armed with similar technical strengths.

GuanXi still remains an essential public relations tool in China mainly due to the Chinese culture.
There is a saying in China that refers to the Chinese people as 重里轻外 (Zhong Li Qing Wai), meaning that they adopt two different attitudes towards friends and strangers. The Chinese people are known to be very polite and generous to people whom they are familiar with. On the other hand, towards strangers, they tend to adopt an attitude of obliviousness and even disregard. This explains why it is a social norm to start off with informal greetings and chatting instead of the formal presentation when business meetings are carried out. Thus, foreign companies will have to establish a certain level of trust and familiarity with the Chinese people before any fruitful partnerships can be hatched.

The system of GuanXi works by the exchange of favours which mirrors the Chinese belief of 礼尚往来 (Li Shang Wang Lai). The Chinese people believe in returning the kindness extended by another or repaying kindness with the same or alike. Such practice is deeply entrenched in their culture. The establishment of GuanXi is also part of a win-win strategy where parties involved benefit from the cooperation and help extended within the circle. However, the reciprocal nature and implied obligations embedded in the concept of GuanXi makes it difficult for parties to maintain this relationship and the Chinese will generally only enter such a relationship when the other party is deemed worthy. Therefore, it is generally more advantageous to be introduced by a mutual party who can vouch for you.

In order to start building GuanXi and establishing the social business circle in China, one could start off with the immediate Chinese network consisting of personnel where there are existing relationships. The Chinese counterparts, as mutual parties, could then introduce one to new networks and acquaintances, thereby expanding the network of GuanXi.

GuanXi need not be based on monetary exchanges or tangible benefits. Instead, showing respect and due regard to others constitutes a fundamental aspect. An important thing to note when addressing Chinese personnel of a higher authority is to address them by their last name. For example, when addressing a manager, the surname is added with 总 (Zong) which refers to someone of a supervising position. 面子 (Mian Zi) has the literal meaning of “face”, which is an important asset of the Chinese people. It is essential to note that it is a bane to rebut the Chinese openly in front of their friends or the public, because it would appear to be an act of disrespect to them.

Unlike normal business connections, GuanXi is a long-term investment in relationships that require
patience and dedication from the parties in question, in order for them to reap the desired returns. This can take the form of a simple phone call or an informal dinner gathering to catch up. Maintaining interaction is an important display of sincerity and dependency, which undoubtedly helps to strengthen bonds.

Although GuanXi is playing a lesser role in the Chinese business culture, it is inevitable for companies to engage in it because companies with better GuanXi and connections in the industry triumph with a more competitive edge. In today’s world, GuanXi works hand in hand with business performance and both are equally important in clinching a deal. However, GuanXi works as a double-edged sword which may backfire if it is not well maintained or initiated. This would affect the reputation of the company that failed to fulfill the implied obligations and in turn affect the word of mouth.