In 1793, the English envoy Lord McCartney arrived in China, seeking from the Chinese Emperor Qianlong an opening of trade. Replying to the request the Emperor wrote the King of England a message that read: "There is nothing we lack, as your principal envoy and others have themselves observed. We have never set much store on strange or indigenous objects, nor do we need any more of your country's manufactures."
Since its unification more than 2,000 years ago, China has viewed itself as the center of culture in the world; hence, the Chinese name for China is Zhongguo, or "Middle Kingdom." In the past, few foreign manufactured goods could compare to those that were Chinese-made. China has long seen itself as an export nation: grudgingly importing raw materials, but seldom goods manufactured from outside.
One of the reasons for this attitude is based on China's long agrarian tradition.
China was one of the first civilizations to develop farming and most Chinese then, as now, live in rural farming communities. These communities, often separated from outside
help by China's mountainous geography, were vulnerable to numerous natural disasters. In order to survive, they learned to band together forming communal, rather than individualistic societies. Thus, what is good for the village always trumps what is good
for the individual and cooperation and obedience to the group is favored over independent thinkers and mavericks. This agrarian mindset prevails even among China's modern city dwellers.
Though ruthlessly exploited by the ruling class, farmers were the producers of China's wealth and held a higher status over merchants who were thought to live parasitically off the labors of others. The prejudice that commerce and business are somewhat shady
activities prevails, and not without good reason.
Another aspect of China's agrarian culture that greatly influences Chinese business attitude is geography. Surrounded by rough terrain that in the past only supported pastoral economies, the sophisticated Chinese agrarian and urban culture looked down on pastoralists, and since they constituted their only experience with foreigners, the Chinese came to assume all foreigners were culturally inferior.
During the West's industrial revolution, China admitted some Western products were
superior and markets for these opened up briefly, but in recent years China has quickly closed the technology gap, and may well be in the lead again. The old attitude of "There is nothing we lack" is again prevalent in international trade with the result that buying
Chinese products and services is relatively uncomplicated, while selling products or services to the Chinese can be as challenging as selling air conditioners to Eskimos.
To market to Chinese one should keep in mind the frugal and mercenary buying habits of country folk the world over. Your product must be either absolutely essential, infinitely practical, or intrinsically valuable.
Absolutely essential items include raw materials, commodities, and basic foodstuffs. Infinitely practical are those products such as farm and factory equipment, tools and parts, and medical equipment. Intrinsically valuable items are those that are guaranteed to never lose their value such as jewelry, precious metals, and finely crafted objets d'art.
Until the average Chinese have a disposable income comparable to western consumers, products or services that appeal to vanity, sloth, and self indulgence are not likely to be well received.
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