2012年2月5日星期日

Introduction of Chinese Business



China is an ethnically and culturally diverse country. Its dominant cultural tradition has been heavily influenced by Confucianism and Daoism.

The idea of Righteousness of Confucianism dominated the Chinese business. And the farming economy was the mainstream in the development of Chinese business.

Chinese merchants, Chinese business and Chinese business culture originated in the central plain. It is proved that the character “”was the name of a primitive tribe in the south of Shangqiu(商丘) of Henan Province. Wang Hai(王亥), the forefather of Chinese business, was the fourth genenration of the tribe. He was the first to carry goods by cow-cart for business in the Shang Dynasty. Thus those engaged in business were called “商人”.

Zi Gong(自贡), one of Confucian students, born in Shandong, was good at business besides politics. Fan Li(范蠡), Sage of Chinese business, was a Nanyang native. He switched from the royal court to business. In the West Zhou there appeared the first professional merchants in Luoyang(洛阳)。 In the Spring and Autumn and Warring Period Shangqiu hand the first institute to collect the tariff. The first international big city was Kaifeng (开封)in the Song Dynasty, with a population of more than 150 million, vividly described in the Riverside Scene at Qingmng(清明上河图)by Zhang Zeduan.

It is generally accepted that Chinese business went through three stages: the Qin and Han Dynasties; the Tang and Song Dynasties and the Ming and Qing Dynasties.

However, Chinese business hasn’t developed as the western business. One factor is that Chinese business is typical of farming economy. Large land and rich resources surply enough to the people. Farming civilization is a conservative, stable and peaceful life style. The idea “ Put farming before business” restrains the development of business. The other factor is the influence of Confucianism. The idea “Learn and learn best and then be officials” strengthens the central government but weakens the business. The brilliant learners refuse to enter the business.

However, there are still some clans like the Kang Family in Gongyi(巩义)in the Qing Dynasty who created the business myths “ having remained to be rich more than 20 generations and to be successful more than 400 years”. The business culture in the central plain plays an important role in the Chinese culture.

Chinese Business has some typical ideas:
2)      Make money with unexpected ideas. (奇谋生财)
3)      Put farming before business. (重农轻商)
4)      Put righteousness before profit. (重义轻利)
5)      Victory lies in the awareness of a place, money comes from the selection of the region. (知地取胜,择地生财)
6)      Buy in when price is low, and sell out when price is high. (时贱而买,时贵而卖)
7)      The beginning can predict the ending, the little can show the great. (见端知末,见微知著)
8)      More sale at little profit. (薄利多销)
9)      Walk on land with a mind to prepare a boat, sail in water with an intent to buy a car.(旱则知舟,水则资车)
10)  Make money by business, and keep the business with money. (以商致财,用财守本)

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