International MBA Students
Offer
Tips on Business in China
By Chantelle WallacePrinting, paper, the compass, gun powder and ice cream were invented in China. Surprising? Not for those who attended the Jan. 25 MBA Plus Program seminar, “Averting International Business Disasters in China.”
Attendees learned China is one of Texas’ top trading partners, according to the Texas Business and Industry Data Center. The Lone Star State imported $12.3 billion in merchandise from China last year, indicating that while China may be geographically far-off, it plays an important role in the Texas economy.
 From left: Business Across Borders Coordinator Leslie Jarmon, Lance Mu, MBA ’08, Reddy Zhang, MBA ’08 |
The Plus event was the first of a five-part series “Business Across Borders,” aimed at helping MBA students succeed in the sometimes confusing world of international business. The sessions are led by international MBA students who have substantial work experience in each nation and want to help teach their peers about working abroad. Future countries to be covered include India, Brazil, Mexico and a combined session of the United Kingdom and Western Europe.
Private Versus State-Owned Companies
In China, it’s important to establish if you’re working with a private or state-owned organization, said Lance Mu, MBA ’08, who worked in finance at ConocoPhillips previous to enrolling at McCombs. Mu explained that significant disparities exist in China among companies that are joint ventures, foreign-owned, foreign-investment or privately-owned, so it’s essential to establish their status prior to engaging them in a business relationship. Thirty percent of China’s economy is state-owned, and therefore involves increased bureaucracy and decreased efficiency which can be intensified if the business is in a less developed area of China.
“There are extremes in China that need to be understood,” Mu said, referring to the dramatic difference between such destinations as Shanghai, an international financial hub, and many of China’s more rural, underdeveloped areas.
Protecting People’s Pride
Mu also explained the concept of “saving face” in China—the importance of perceiving oneself as respected and avoiding offending others. For example, if a United States corporation sent a middle manager to meet with the CEO of a Chinese business, this would offend the Chinese CEO because his position is higher than that of the middle manager.
Gift Giving
Those planning to do business in China should expect to receive gifts from business associates, which should be equally reciprocated, said Reddy Zhang, MBA ’08, whose nine years of work in China included product management and marketing promotion. Zhang noted that Moon Cakes and calendars make acceptable gifts to offer Chinese business acquaintances, however it’s important to avoid giving clocks or anything that is pure white because both symbolize death in China.
For more information about future Business Across Borders events, please contact Plus Program Director Saleem Assaf at saleem.assaf@mccombs.utexas.edu or Business Across Borders Coordinator Leslie Jarmon at ljarmon@mail.utexas.edu.
For information on specific programs at the McCombs School, consult our contacts page. For media information, contact the Communications Director by phone at 512-471-3314 or by email at CommunicationsDirector@mccombs.utexas.edu.
