|
|
| Home > City Guide - Shanghai - Business | ||
|
||
|
Business Business Profile Shanghai’s business has always been business, since its emergence as a major city. This is infinitely more true now, when the city is the economic powerhouse of China’s modernisation and pitching to replace Hong Kong as Greater China’s financial and maritime trade centre. Given this thrust to make money, it is surprising that Shanghai actually takes care to maintain its relatively attractive environment. However, the growth of tourism (approximately 6%) and a developing leisure economy explains such foresight in retaining the characterful neighbourhoods. Shanghai may have some quiet jealousy of Beijing, since the International Olympic Committee awarded it the 2008 Olympic Games, but there is no sign that this will hold Shanghai back in capitalising on spin-off opportunities as the full benefits of WTO membership kick in. Shanghai is the number one focus for foreign investment in China, having received over 40 billion US Dollars to date – the greatest investment in any city in the world. International vehicle manufacturing giants with local joint ventures include Volkswagen, General Motors, Ford, Volvo and Buick, whose products fill the streets. The local competitor, Shanghai General Motors, has launched new models to compete with these foreign favourites. Other investors in the Pudong development area include Coca-Cola and Kodak. Financial services are an important and growing sector of the local economy, with the combined capitalisation of Shanghai and Shenzhen’s bourses (exchanges) already exceeding that of Hong Kong. In years to come, more and more big mainland companies will seek to list on these exchanges rather than in Hong Kong. The size and strength of these exchanges can only grow – local supremos are already planning to take Shanghai up to Asia’s number one bourse, as it was before World War II. The city’s unemployment figure is also a positive sign – standing at 3.5%, it is below the national average of 4.5%. The Pudong New Area is being developed according to a strategy first announced in 1990: ‘With the development of Pudong as the head of the dragon, build Shanghai into one of the international economic, financial and trade centres.’ This development was intended to bring a backwater area – previously under-utilised wasteland and slums – into line with the pace of change on the western bank of the Huangpu River. And it succeeded tremendously. Free trade zones and high-tech parks were opened in Pudong, while infrastructure improvements in the New Area were matched with the opening of new bridge and tunnel links across the river. Pudong New Area is in fact 1.5 times larger than urban Shanghai itself. The area’s output has increased by over five times in the decade since 1990 and its Orient Pearl Tower is the new symbol of the city. Business Etiquette Doing business in Shanghai, at least on the formal level, requires considerable patience and persistence. Unflappable good and cheerful manners help save face for business clients and public displays of anger should be avoided. Nevertheless, protracted negotiations can often be wound up neatly during a business banquet or an after-hours karaoke session – these are the settings where China’s legendary guanxi (connections) are exercised. Public business is very formal, with executives wearing suits and exchanging business cards, bows and handshakes. Women should avoid wearing high heels or short sleeved blouses – revealing clothing is considered offensive. Both men and women should dress in neutral colours and avoid using large hand gestures, personal contact and pointing. Gifts often help open initial contacts, although these should never be open to misinterpretation as bribes. In many companies, especially larger and older ones, a Party appointee, who has an honorary or nominal senior post in the company, will preside at the first sessions, then leave the real business to the operational management. Business hours are usually 0800-1700 weekdays, with one or two hours for lunch. Seniors are usually granted respect, at least to their faces – despite the Cultural Revolution’s attack on the ‘Four Olds’, Confucian respect for order of seniority dies hard. Likewise, political change may have emancipated women in China before the law but in business circles men still take precedence. Businesswomen are expected to dress and behave soberly, while businessmen in Shanghai should be prepared for evenings in hostess bars with clients and associates. Foreigners are usually treated with cautious respect, although outsiders should not always expect a Japanese-style enthusiasm for foreign languages and culture – mainland Chinese have a strong pride in their own language and traditions. Public manners in eating and drinking can seem hugely lax to foreigners – Shanghainese spit, belch, pick their teeth (and so on) quite openly. However, visitors are advised to tolerate but not emulate this. After-hours drinking sessions to seal negotiations and cement relations are common. Shanghainese are stronger drinkers than many overseas Chinese, although will react badly to heavy consumption by foreigners. |
||
