Understanding China : A communist government of a people with capitalist traditions

Often, businessmen and traders in recent times have looked at China, and seen a communist government, and underestimated the capitalist sense and business savvy that would face them across the negotiating table, in the face of their counterparts, businessmen from China.

In understanding how the Chinese think, one must look to their roots.

The chinese have long been capitalists by tradition. They have been traders of silk, of spices, of precious metals, of tea and even the printed word, across the silk road to the middle east and Europe, trading with the rest of Asia, and probably even the pre-Columbus America. The communist government that governs China has only been in place for less than a century.

Look around the world. Look at the nearest big city with a chinese community. Perhaps, you’re in San Francisco. Or Seattle. Even London. All these cities boast a thriving chinese community, of people who trade, who retail.

Even the communist government understand the value of money. A people with money and comforts are a happy people.

Looking at the traditional values that the Chinese value, the one held in highest regard is “fu2″. Meaning, wealth. Followed closely by good health and longevity.

Which is why the Chinese are unlikely to declare war on a global scale anytime soon. The chinese will defend - they have defended their territory against the Huns, the Manchus, even the aborigines from the south, for thousands of years. But they are are unlikely to be conquerors in the manner of Genghis Khan or Alexander the Great. They want stability, they want wealth, and they want long life. And long life does not come from fighting a war.

But in business, the Chinese have proven shrewd. They watch, and they learn. Any business that can be replicated, will be replicated, on a larger scale. Any manufacturing that can be done, will be replicated with cheaper costs. They have started flooding markets with cheap goods to establish market share in regions like Africa. They already have the largest foreign reserve in the world, and it’s growing.

If ever you are going to do business in China, the thing to remember is ;- at the other end will be a smart savvy businessman who will not say much, but will be watching everything you say or do. Remember that, and you might survive. Or even turn a profit.