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Industry Updates |
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Aviation |
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About 155 aircraft will be delivered to China in year 2008 as the country's airlines expand their fleets, a top official said yesterday...... |
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Policy Updates |
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Foreign and domestic companies to face a unified income tax rate of 25 percent |
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Companies in China currently pay income tax at a nominal rate of 33 percent. However, this is set to change ...... |
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Government Appointments |
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New Agriculture Minister 每 Sun Zhengcai |
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China's top legislature named 43-year-old Sun Zhengcai as the new Agriculture Minister on Friday, making him the country's youngest ministerial-level official ...... |
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Xie Appointed to NDRC |
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Xie Zhehua, the former minister of environmental protection has been appointed deputy head of the National Development and Reform Committee (NDRC) ...... |
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Latest News from BCG: |
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With BCG's Assistance, the world's largest wool carbonizer opened their first processing facility in China in Jiangsu Province. |
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BCG assisted the largest Australian irrigation design firm to establish a Wholly Owned Foreign Enterprise in Beijing. |
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Chinese Business Culture Analysis |
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Westerners often find the Chinese way of talking about business bizarre 每 they tend to spend ages talking about irrelevant topics and may even be unfocused and unclear when they finally start discussing the "real" topic...... |
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| Industry Updates |
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| Aviation |
About 155 aircraft will be delivered to China in 2008 as the country's airlines expand their fleets, a top official said yesterday. While twenty-five aircraft will be taken out of service, this addition will mean that China's airlines have a combined fleet of more than 1,000 aircraft in 2008.
Meanwhile, 26 billion yuan (US $3.25 billion) will be invested in civil aviation infrastructure. The money will be used to build and expand 33 airports, many of them in Western China.
The industry is expected to transport 160 million passengers and 3.42 million tons of cargo for the year, an increase of 15.9 percent and 11.5 percent respectively over last year. Similar growth rates are anticipated in 2008. |
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| Policy Updates |
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| Foreign and domestic companies to face a unified income tax rate of 25 percent |
Companies in China currently pay income tax at a nominal rate of 33 percent. But because of various tax waivers and incentives, many foreign businesses actually pay about 15 percent, while domestic enterprises on average pay 24 percent. However, this is set to change, with a new law proposing the tax rate for both domestic and foreign companies shifts to 25 percent. The draft offers foreign businesses a grace period of five years, and says any favorable polices will apply to both local and overseas companies equally. Shi Yaobin, Director of the Tax Policy Department of the Ministry of Finance, believes this change will not result in a sharp decrease in foreign investment; vast market potential and low labor costs continue to be major attractions for investors. If passed, the law is expected to take effect on January 1, 2008. |
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| Government Appointments |
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| New Agriculture Minister 每 Sun Zhengcai |
China's top legislature named 43-year-old Sun Zhengcai as the new Agriculture Minister on Friday, making him the country's youngest ministerial-level official. With a PhD from the China Agricultural University, Sun worked in the Beijing Academy of Agriculture and Forestry Science for four years. Sun was formerly head of Shunyi District in Beijing and Secretary-General of the Beijing Municipal Committee of the Communist Party of China. |
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| Xie Appointed to NDRC |
Xie Zhenhua, the former Minister of Environmental Protection who resigned over China's most serious case of water pollution in 2005, has been appointed deputy head of the National Development and Reform Committee (NDRC), in charge of environmental protection and energy-saving, according to the NDRC website.The new position makes Xie responsible for achieving a 10% cut in sulfur dioxide emissions by 2010 and a 20% reduction in energy consumption of Gross Domestic Product per 10,000 yuan ($1,250). |
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| Chinese Business Culture Analysis |
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| THE AMBIGUOUS CHINESE by Cecilia Fan, Managing Consultant, Beijing Consulting Group. |
you may have heard comments from your friends or colleagues about the Chinese such as: ※We wasted so much time on them, in the end we realized they were never that interested and could just have said no to us at the start§ or ※They clearly said NO to our conditions so we stopped pursuing them, but our competitors who also got the NO message kept engaging the Chinese and eventually succeeded. How can we deal with people who can't even clearly give you a Yes or No answer?§
Westerners often find the Chinese way of talking about business bizarre 每 they tend to spend ages talking about irrelevant topics and may even be unfocused and unclear when they finally start discussing the ※real§ topic. Conversations may involve obscure references to a character from some old historical novel or a long-dead military general or public servant whom neither you nor your interpreter knows or understands. You may keep trying to clarify exact details but the answers may serve to only deepen your confusion. Alternatively, you may be too polite to ask for clarification, wondering whether the interpreter is up to the task or not. You might even begin to suspect that you are just talking with a dud Chinese businessman, wondering how he could collect so much wealth so quickly while being such a nutcase.
As a generalization, Westerners tend to be straightforward and structure-focused while the Chinese tend to be more conceptual and key point-focused. Westerners love legal definitions, terminologies and relish going through contracts point by point, over and over# This represents a precise and straightforward approach to problems. The Chinese can be a lot more pragmatic, creative and non-linear in their approach. They tend to process issues in layers based upon their priorities and principles rather than a set structure or procedure. For example, a Chinese negotiator may not have an established process of dealing with an issue so would prefer to test them all. Thus, it's not always easy for him to give an exact YES or NO response, his actual position being closer to ※Yes, but we would like to explore the other options§ or ※No, but if the other options don*t work we will come back to this issue.§
Westerners may ask ※Why make it so complicated? Aren*t the Chinese tired of this themselves?§ The answer to this being that ambiguity has been deeply rooted in Chinese life and culture for thousands of years. Throughout their childhood, puberty and early employment years, Chinese people learn to swallow the words they want to say but cannot, using a calm and humble expression to cover their real passion, ambition and emotions lest they challenge the accepted consensus. An old Chinese expression emphasises that the early bird will be the first to be shot, in stark contrast to its Western counterpart that stresses the importance of being the first to do something. Learning how to express oneself ambiguously allows the expression of thoughts and ideas that may otherwise receive censure if expressed explicitly.
The culture of ambiguity also reflects the nation's contradictory focus on mutual feelings that co-exists with a strong core base of reason or rationality. Probing for these feelings is often behind the many ※off-topic conversations§ in China. As such, the Chinese often care less about what you say and more about how you say it.
Understanding Chinese ambiguity begins with the interpreter. Being fluent in a language needs to be supported by a thorough understanding of the culture. Very few interpreters understand the importance of explaining inferences and underlying intentions which impedes Western understanding of this Chinese trait.
Also be cautious about understanding Chinese business culture through the action lists of ※dos and do nots§ that appear in various publications and journals. These are fine to use as a reference but can*t be applied strictly. For most people, it would be just as useful to apply your own common sense and judgement, take a learning approach and be realistic about your learning a curve. Understanding Chinese business culture takes years of practice and can't be achieved by just reading a few hot-selling China books.
In the end, an over-emphasis on clarity may create conflict, preclude new opportunities and result in unnecessary legal obligations. On the other hand, appreciating ambiguity may bring mutual understanding without formality, knowing by the heart rather than through words. The meaning of a word is limited, while a ※sense§ can be established quickly and applied broadly.
If you have now concluded that I am trying to confuse you 每 welcome to the ambiguous world of the Chinese. As long as it makes sense somewhere then the ※clarity§ is within.
Note: the article was published in ※Australia-China Connection§ magazine |
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