Comparing China and Portugal

With the growing globalization levels, understanding others’ culture is crucial for successful business operations. As the borders become more transparent and seamless, business is becoming gradually global. The business world is also evolving and more competitive, and firms are forced to expand beyond their national markets, seeking new opportunities, customers, and business partners across boards. However, businesses must understand that we live in a culturally diversified world, and respect for other countries’ cultures is paramount for success (Ting-Toomey, & Dorjee, 2018). An important area that attracts attention when comparing the global business world today is the cultural differences between the East and the West, with China being of particular interest in the Eastern market.

China has one of the largest and most potent economies globally, having only the US as the leading competitor. As the China market continues to impact the global economy, it is offering investment and business opportunities for many companies worldwide. Portugal is one of the countries with strong trade and economic relations with China, rooted in the ancient days, more than 500 years ago when Portuguese traders arrived to exchange ivory, silver, and other items for Chinese silk. Portugal and China established a dalmatic relation in February 1979, beginning a new chapter in trade relations, which has seen accelerated growth in bilateral trade between the two nations from $200 000 in 1979 to $6 016 million in 2018. China is also the biggest Portuguese trading partner in the Asian market (Fernandes et al., 2021). However, the two countries differ significantly in their culture. Culture plays a critical role in trade negotiations and managing massive international projects, hence requires understanding. Understanding cultural differences is important while conducting business in the global markets as it prevents blunders that disregard other cultures.

This study explores cultural differences between Portugal as a Western country and China as a nation that has raised a long of curiosity for its entirely different culture from the West. The paper addresses the differences in cultural aspects that can influence trade negotiations and business relations between China and Portugal, including business etiquettes, including dressing codes and greetings, and corporate culture.

Comparisons and Analysis

Corporate Etiquette Analysis

Chinese and Portuguese have different cultural etiquettes and values, which are worth noting. The Portuguese value appearance and consider somebody’s looks as critical. The Portuguese value good looks and they are conscious of fashion trends. Hence, they believe in creating a lasting and solid first impression (Fernandes et al., 2021). They believe that clothing is a symbol of one’s success and social position. All sexes dress formally. Notably, a conservative dark-colored suit and tie are the typical male attire. Mostly, casual clothing is relevant in some creative and modern industries. As such, looking good on the negotiation table will earn you an excellent first impression, which is critical in any business relationship.

In China, however, they value conservative dressing. Mostly, men wear smart suits and ties and avoid bright colors and designs. Women usually wear pastel colors, and their dresses are below the knees. High heels are not open-ended (Fernandes et al., 2021). This analysis shows that the Chinese and Portuguese have different dressing codes, but they all influence how one is perceived in society. Understanding the dressing code and knowing what to wear are essential steps to earning an excellent first impression in a business negation table.

In Portuguese, a handshake is the most common mode of greeting both at the start and end of the meeting. It should be firm to show self-confidence, and eye contact is critical during the greetings (Fernandes et al., 2021). Women should handshake first, according to the Portuguese culture. Older people and highly educated persons are accorded high courtesy and respect. The Portuguese are friendly in first meetings, tend to adopt a more formal attitude, and are reserved in the business context (Fernandes et al., 2021).

Similarly, a handshake is the most common form of greeting with the Chinese people. However, the Chinese partner should initiate the greeting and must be light long, avoiding physical contact as much as possible. Eye contact is also not encouraged, and you should keep your years down as much as possible. Nodding and other forms of gestures are more encouraged in a less formal setting. Professional hierarchies and positions are essential, and titles are highly valued (Fernandes et al., 2021). It is necessary to understand these cultures because they influence the first impression during a negotiation. Different cultures do not perceive the world the same way. What Americans perceive ideally may be awkward to a business partner in a different culture. Understanding different cultural etiquettes and protocols help business negotiators to make a good first impression.

Corporate Culture Analysis

Besides the corporate etiquette, corporate culture is also important when conducting business in a cross-cultural setting. Corporate culture defines the behaviors and beliefs determining how the company employees interact with the outside world (Schein & Schein, 2019). In Portugal, the business culture is defined by relationships. Seniority and age are respected. Portuguese prefer conducting businesses with people they are comfortable with, know and trust (Fernandes et al., 2021). In some instances, people do business not because of the value attached to the organization but because of individual empathy. Portuguese are best known as attentive to details and thorough and are prudent business partners. Portuguese ask for a precise delivery time, payment terms, and currency (Ismayilli & Ledeneva, 2020).

As for Chine, the business culture is defined by the guanxi Wang principle. Under this concept, different networks guide functionality in the Chinese market. The business culture in China is mainly impacted by Confucianism that represents values including loyalty, harmony, solidarity, and mutual reciprocity. When one does not follow these codes, they cannot establish a business in China and succeed. Pointing the finger at someone is a rude gesture, while eye contact is best to grab one’s attention respectfully. Various sensitive issues and taboos should not be mentioned, including human rights and politics (Ismayilli & Ledeneva, 2020).

Punctuality is another aspect of corporate culture that varies between the Portuguese and Chinese business environments. In Portugal, punctuality is not a very important element in the meeting context. For instance, the business host arrives early or on time, while other participants often come late. Coming late for a meeting is not perceived negatively (Fernandes et al., 2021). In China, the case is different, punctually is considered an essential facet in the business meeting, and coming late may automatically create a negative first impression during the negotiation and business relationship (Fernandes et al., 2021).

This corporate culture analysis shows that Portugal and China have different corporate cultures. Without following these cultures, it is difficult for businesses to thrive and create long-lasting bilateral business relationships. Making a sustainable, long-lasting relationship means potential partners have adequate time for interaction and stick to long business meetings. Understanding their counterparts’ culture is vital for successful business dealings.

Conclusion

There are stark differences between Portugal and China concerning business cultures. This paper reveals these differences and shows what people must consider before conducting any business. Chinese and Portuguese have different cultural etiquettes and values, which one must understand to have successful cross-cultural business negotiations and relations between the two countries. For instance, a good look and fashion trend are very important for the Portuguese, while the primarily Chinese value conservative dressing. Eye contact and a firm handshake are also crucial for the Portuguese during greeting, while the Chinese do not value eye contact and should look down while shaking hands. The two countries also have different corporate cultures defined by their value systems and cultural beliefs. Understanding these cultural differences is essential to appreciating the business contexts of both cultures and facilitating business negotiations and relations.

References

Fernandes, A. S., Pinto, C., Alves, C. M., & Gulc, A. (2021). Business savoir-vivre and culture: differences between Portugal and China. https://depot.ceon.pl/bitstream/handle/123456789/20491/1.3.%20A.S.%20Fernandez,%20C.%20Pinto,%20C.%20M.%20Alvez,%20A.%20Gulc,%20Business%20savoir-vivre%20and%20culture%20-%20differences%20between%20Portugal%20and%20China.pdf?sequence=1

Ismayilli, J., & Ledeneva, M. (2020). BUSINESS CULTURE FEATURES OF CHINA. Редакционная коллегия, 312. https://www.kgmtu.ru/documents/nauka/SbornikEng2020.pdf#page=312

Schein, E. H., & Schein, P. A. (2019). The corporate culture survival guide. John Wiley & Sons. https://books.google.co.ke/books?hl=en&lr=&id=Us-cDwAAQBAJ&oi=fnd&pg=PR9&dq=What+means+corporate+culture%3F+Corporate+culture+refers+to+the+beliefs+and+behaviors+that+determine+how+a+company%27s+employees+and+management+interact+and+handle+outside+business+transactions+2019.&ots=PD3c2JU_hY&sig=Ah_Btm4K4H7uMVc2Mxtt9OjBdGk&redir_esc=y#v=onepage&q&f=false

Ting-Toomey, S., & Dorjee, T. (2018). Communicating across cultures. Guilford Publications. ISBN 9781462536474