The dragon as its formally known opened its arms to foreign investment in the year 1979. Since then, it has been playing an important role in the world economic environment. As the second largest economy in the world, China has shifted its economic policies from being a centrally controlled system to a market oriented economy opened to foreign investment. Chinese people give equal importance to both the Chinese Culture as well as the modern practices of doing business. Chinese companies generally follow a more hierarchal system of top to down communication which is a characteristic of high authority superior-subordinate relationship. In terms of individualism, Chinese organizations have a low individualism index and are more group oriented with lots and lots of indirect communication among employees, the benefit for such kind of an indirect communication is that communication caused in an indirect manner causes less chance of breaking harmony among the groups. So it is very important for Indian business to understand that relations play a very important role than tasks in a society like China. Establishing a relationship might require a lot of patience but the aftermath can affect both the Chinese as well as the Indian businesses in a positive manner.
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