1. Home
  2.  | 
  3. Business Law
  4.  | How America and China’s business cultures differ

How America and China’s business cultures differ

On Behalf of | Jun 27, 2022 | Business Law

As someone who conducts business in both California and China, you may find that there are certain business practices or customs that differ quite a bit from nation to nation. Not all countries conduct business using the same set of standards and values. The more you understand about how business works in China, the less likely you are to offend anyone or otherwise make any missteps.

Per SmallBusiness.Chron.com, it may serve you well to know that the American and Chinese business cultures differ in the following distinct ways.

How they treat and defer to leaders

While, in American business, it is not unusual to challenge those in authoritative roles, the same does not hold true in China. Chinese business associates hold a good deal of respect for their leaders and supervisors and are unlikely to challenge their decisions.

How they make important business decisions

When it comes to making important business decisions, Americans are often more prone to making such decisions quickly. In China, business associates tend to take more time before making decisions, often considering all pros and cons of a particular business decision before making the call to move forward.

How they give their word

In America, business associates often sign contracts or similar legally binding documents when they commit to certain actions. Yet, in China, many business associates seal their deals with handshakes, rather than legally binding documents or contracts.

While the Chinese and American business cultures also differ in other key ways, this information should give you an idea of some of the key differences that exist between the two.