Cultural differences between China and Europe Factors to consider before investing in China It is essential for any business hoping to enter into the Chinese market to have a comprehensive understanding of the country’s business environment, local culture, business practices and government policies. China has an immensely diversified culture, which means that the country has a fragmented market. As such, for instance, a strategy for investing in Shanghai may not necessarily apply in Beijing. China is quite different from the western world; therefore a company should take into consideration the Chinese culture and societal values, before commencing operations. It is only through the understanding of the local culture that a business can establish strong foundations in that particular geographical area, which will ensure successful business planning. A foreign business should also not assume what works in it’s home country will also be successful in another country. China has multiple cultures, unlike most western countries. Comprehending how the local people operate, and how their businesses operate could allow a foreign country to blend in quicker than time it would have taken to adapt without first having implemented a market research. Significantly, it would be cheaper and more time effective to change a company’s policies in regard to the local environment, as opposed to changing the local culture to suit the company’s policies. Therefore, adaptability and adaptability to the local situation are crucial for business success in China. Foreign management has to develop a close relationship (guan xi) with domestic partners, which will further the understanding of the Chinese market and business ties. Strong relationships also prove useful in times of trouble, or when a company needs assistance. Some of the risks that may arise in China could be due to the political environment, financial crisis or labor disputes. Employing local management staff will be advantageous in the development of strong business partners, especially due to networking, which in turn help in mitigating potential risks. The Chinese government’s regulations have a toll in market movements, and a hand in influencing foreign business’ policies. A strong relationship with government officials is an important factor to consider in doing business in China. Although China could be considered to be a highly bureaucratic state, commitment to governmental policies ensures smooth business operations foreign business could benefit from employing local managers, who would form the basis of interpreting the country’s laws. Different regulations also apply to different provinces, which calls for different strategic policies when expanding operations in China. Cultural differences between China and Europe Western Europe is predominantly capitalist, meaning that there is an acceptable common concept of individualism. Individualism as a moral stance makes people behave in manners that promote the achievement of their own personal goals and interests. There is a greater deal of independence and self-reliance in most European settings, where individuals opt to rebel against rules that come between them and their needs. People in the western world display more artistic and bohemian interests, and their lifestyles are directed towards s