Doing business with dragons of different breeds: some important differences between China and Japan

Warns against expecting the Japanese and Chinese to behave similarly, despite common features of their national cultures and geographical proximity. Points out that China follows Confucian‐based business ethics based on connections, mutual trust and under the table dealings, whereas Japan subscribes to Shinto‐based business ethics, depending on perfection, product superiority, obligation, personal honesty and self‐sacrifice. Provides a brief historical overview of each country’s cultural and political dynamics, then draws attention to some of the important differences between China and Japan – China preferring a command culture, pragmatism, centred on the family and using punishment as a means of ensuring conformity, whereas Japan prefers a consensus culture, sentimentality, has a strong sense of nationhood and relies on praise to achieve required performance. Suggests that western businesses keep this in mind if they are to conduct business successfully in either or both of these two countries.