Knowledge on China

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Knowledge on China

Building trust and long term relationships is not important form the business perspective.

True

False

Trust is essential for a long lasting and reliable cooperation with a Chinese partner.

Background: Following the term “guanxi”, Chinese people also demonstrate sustainable business relationships if the trust is not broken.

Compared to Europe, public displays of emotions are common.

True

False

The Chinese culture is instilled in quiet resilience and energy. If you are set back by something, the Chinese are expected to suppress feelings and get back up without outside support.

Background: Asking for outside help is considered weak, so the story of the self-made man from rags to riches is even more powerful in Chinese culture than in American or European culture.

China has over 4,000 incubators while the European Union has less than 1000.

True

False

China has fostered over 223,000 businesses as of 2016.

Background: According to a European Commission report, there are over 900 incubators in the European Union. Innovation and technology in China have been in exponential growth in the recent years, making China one of the innovation hubs worldwide.

“Guanxi” means the relationships individuals cultivate with other individuals.

True

False

Guanxi is a Chinese term meaning "networks" or "connections" that open doors for new business and facilitate deals.

Background: Interpersonal relations are valued more and are very important when doing business.

Markets in 2nd–tier cities are more competitive and labour costs substantially higher compared to the cities of 1st–tier.

True

False

1st-tier cities are still more competitive and present higher labour costs.

Background: China’s top tier cities are among the world’s most popular investment destinations. Shanghai is the city with the highest monthly minimum wage in China.

In China, you should engage in discussions regarding politics.

True

False

Avoid discussions related to politics.

Background: Politic tension is often present in China, especially when related to Taiwan, Hainan, Hong Kong or Tibet. Avoiding political conversations is advisable.

The Chinese government gives a low priority to the development of science and technology in the national economic growth.

True

False

China’s Science and Technology (STI) market is a very dynamic sector offering considerable opportunities for potential collaboration. At the same time, the European Union (EU) and China share a long history of cooperation on STI subjects.

Background: Innovation has a priority in the Chinese political agenda and is going to strongly influence the perception of China in the future. Through the government’s top-down approach and their willingness to push STI reforms, their enforcement throughout the STI landscape is expected to be very firm. Hence it can be expected that science, technology and innovation remain as a top priority in the future.

The “Belt and Road initiative" is a trade and infrastructure project that aims to link China — physically and financially — to economies across Asia, Europe, Africa, and Oceania.

True

False

The main focuses of the "Belt and Road" initiative — also known as "One Belt, One Road" — are in infrastructure, transportation, and energy.

Background: China has invested at least $900 billion (£635 billion) in projects along the belt and road, mainly in infrastructure, transport, and energy. These include a gas pipeline in Pakistan, a motorway in Hungary, and a high-speed rail link in Thailand.

In total, more than 70 countries are taking part in the Belt and Road initiative, altogether representing a third of the world's GDP

True

False

Countries including India, Pakistan, Russia, New Zealand and Poland have all joined the project.

Background: Countries that haven't joined Belt and Road have also profited from the mega-project. Western multinationals like General Electric and Caterpillar in the US and DHL in Germany have all signed trade agreements to build Belt and Road projects.

Compared to Europe, the Chinese legal context is constantly changing.

True

False

China has been strengthening the anti-piracy and anti-counterfeiting laws and regulations.

Background: In the last years, China has drastically improved its Intellectual Property Rights (IPR) protection and enforcement. Patent applications, which can be considered the most direct indicator for the creation of new technological knowledge in China have been continuously rising since 2000.

What is the "Belt and Road initiative"? Have you already heard about "Guanxi"? Try our CUBE IN quiz about China and learn more about the culture and innovation environment!

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