BRIDGING THE CULTURAL DIVIDE From getting to grips with guanxi and mianzi , to embracing the importance placed on rituals, etiquette and patience, LSE’s Catherine Hua Xiang offers practical guidance for those seeking to build lasting relationships with partners in China
G lobal expansion has made cross-border collaboration routine, but it’s far from easy. One problem is that many Western leaders invest heavily in market data and analytics, yet they often neglect the most critical variable: understanding how people in other cultures communicate. This is especially important in China, where business dealings are shaped by norms that differ markedly from Western practices. Misreading these can derail negotiations, strain partnerships and tarnish a brand. By drawing on intercultural research and recent case studies, this article aims to offer guidance for those who wish to build lasting relationships with Chinese partners. CHINA AS A HIGH-CONTEXT CULTURE One of the most fundamental differences between Chinese and Western communication styles lies in context. Anthropologist Edward T Hall describes high-context cultures, common across Asia, as places where meaning is conveyed implicitly through tone, timing and relationships. In contrast, low-context cultures, such as in the US and Germany, prize explicit, direct communication and comprehensive information. For a Westerner, this means your Chinese counterparts may not spell out their intentions in plain language. Silence,
• Invest time in relationships : High-context cultures value
pauses, or indirect phrases carry weight. For instance, a polite “we will consider your proposal” might mean “no” in reality. A mention of competing obligations, meanwhile, might signal that a deadline is flexible. Westerners who take words at face value risk misunderstanding the entire conversation. This point is illustrated clearly in a comparative study of two meetings held between Chinese and British businesspeople conducted by University of Warwick professor emeritus Helen Spencer-Oatey. In one meeting, the British hosts kept their Chinese guests waiting and failed to acknowledge their seniority. They also rushed directly to the agenda without the customary small talk. While the hosts felt they were being efficient, the Chinese visitors perceived these omissions as disrespectful and a loss of face ( mianzi ). These missteps strained the relationship and ultimately doomed the partnership. The lesson: in high-context settings, the how and when often matter more than the what. To navigate high-context communication, Western leaders should: • Observe non-verbal cues : Watch for silences, changes in tone, or indirect phrases. These often signal disagreement or hesitation. • Be comfortable with ambiguity : Avoid pressing for immediate “yes” or “no” answers. Instead, give your counterpart space to reflect and respond later.
personal connections. Building trust over meals or tea isn’t a waste of time; it’s a prerequisite for getting down to business.
UNDERSTANDING MIANZI & GUANXI Hierarchy and mianzi are pillars of the Chinese social order, with business cards often listing multiple titles to signal expertise and rank. When addressing someone, speak to the most senior person first, use honorifics such as “ laoshi ” (teacher) or “ xiansheng ” (Mr) and use the formal pronoun “ nin ” when greeting elders. Failing to acknowledge someone’s status can be perceived as a slight. In the Spencer-Oatey case, the British hosts didn’t offer the most senior Chinese delegate a chance to speak, causing offence and jeopardising the relationship. Studying titles beforehand and inviting remarks in order of seniority preserves mianzi and shows humility. Beyond showing respect, building a network of personal relationships, known as “ guanxi ”, is crucial for success in China. Guanxi is a complex concept that means more than just having connections; it’s about a reciprocal exchange of favours and mutual trust. These relationships are often cultivated through social interactions, such as sharing a meal, offering a gift, or extending a personal favour.
36 Business Impact • ISSUE 5 • 2025
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