6 Things I’ve Learned as a CEO in China

There’s a very real difference between life inside and outside of China, from the cultural tapestry seen from dancing troupes of grandmothers and their adolescent fans sitting nearby to the vastness of society visible when traveling through Tier 1 or Tier 5 cities. Having lived there for nearly a decade and currently being in another bustling Asian city, Bangkok, there are many aspects of China that are noteworthy. 

1) 996 Culture is Not What You Think

To those who are unfamiliar with the concept, 996 refers to the overload of working hours that is not uncommon in China. More specifically, the numbers indicate hours from 9:00 am to 9:00 pm, 6 days per week. That is a staggering 72 hours in total. Jack Ma, founder of the e-commerce giant Alibaba, himself said “employees who work long hours get the rewards of hard work” and questioned “how do [employees] achieve the success [they] want without paying extra effort and time?”

From the years I’ve lived there, I noticed this to be true. With the extent of the normalization of the culture in addition to the competitive workplace environment, it’s difficult to stand out by going below the standard. Productivity, grit, and perseverance get exemplified. To quote another inspirational figure, “no one ever changed the world on 40 hours a week” (Elon Musk).  

2) Learning Chinese Opens Many Doors, Not Just in China

Even before work, I realized that as China was emerging as a global powerhouse in the economy, the Chinese language would become increasingly relevant. Upon arrival, I realized this was the case. From the most rudimentary of communications with restaurant, and store employees, to the documents in business reports, learning Chinese has allowed me to extend my general freedom. But this is nothing surprising. 

What did surprise me, however, was the number of opportunities that opened up. As an entrepreneur, working with fellow innovators and managers increased the flow of communications and this ease made them more open to sharing ideas. The cultural differences became less pronounced with increased shared values. Many times, some things would be lost in translation, with the simplified grammatical nature of the Chinese language; at others, it would simply be inaccessible. This process made me more cognizant of the overall friendships made, many of which have allowed me to extend my company’s influence across borders. When you look closely, China has many global micro communities within it. 

3) There’s a Policy and Procedure for Everything

At first glance, the order, hierarchy, and complexity to organizational structure is outstanding, even possibly overwhelming. Through my monitoring of company culture across various industries, I’ve noticed a rigid monitoring of employees in and out of work, including lunch breaks. Leaving early or coming late would also have an insane amount of paperwork, with up to 5 additional signatures required. A minor inaccuracy could lead to a substantial fine. 

Even in management, there is a “govern and rule” mindset in place. Fear usually trumps transparency and care. This was sometimes efficient when it came to mass scale operations with thousands of employees needed to supervise. Yet, the emergence of technology and innovation firms with hints of Silicon Valley have started to shift this in an opposite direction, and is something that I am trying to instill in DHB Global as well. It’s a process, and we are not quite there yet, but there is a growing trend to encourage people to speak out against authority, be bold in their thoughts and ideas, and practice radical candor.

4) The Corporate Direction is Complex

Previously, Chinese companies tended to stick to their own domestic markets. In the rare instance that international endeavors are needed, foreign entities are merely seen as facilitators rather than the leaders. Marketing, editing, and minor business development factors are taken into consideration. 

Now, when you look at the opposite scenario, there is high demand for these same foreign entities to enter China. As DHB Global helps cater to these services, I have noticed that many build relationships with local managers, spend months learning about the market structures, and interact as much as possible to obtain a certain consumer mindset. I have found that these successful businesses have to do in-depth research on policies and regulation that supplement general business culture. Yet, as a result of this, globalization has started to be a two-way flow. The Belt and Road Initiative is a great case study to know more about the expansion around Asia. 

5) Agility is Key

The economy in China has seen massive changes in trends in the past few years, with a shift to technology. Machine learning, IoT, embedded finance and infrastructure all play a role in disrupting the traditional business model. This also means that companies rarely plan with a long term vision, with less organization and planning compared to Western firms. This chaos, however, also means swift capturing of market shares, efficient execution, and large consumer followings according to a given trend. Intersecting the physical and digital realms is integral in the way China develops and flourishes.

6) Connections, Food, and Drinks are Your Best Friends 

“Guanxi,” translated as “connections” is one of the primary pillars in how to do business, whether as a CEO or an employee looking to make his way up the ranks. Managers tend to form business deals and hiring decisions off of how well they know the person. Networks tend to be a lot more localized and external divisions are autonomous without much integration. 

Though the culture may sound unappealing at first, it teaches the importance of building friendships and encourages lifelong relationships. 

Though the culture in the aforementioned seemed strict and unabiding, there is a whole new side to these connections that are formed. Business is conducted alongside late night dinners, shots of baijiu (white wine) and karaoke. It is times like these that help develop trust, show a more humane side not seen in the corporate space, and forms many memorable occasions.