Thriving in China's NEW post-Covid Normal - The Challenges (Part 1)

china china business chinese culture chinese employees chinese psychology chinese thinking covid-19 new normal Jun 19, 2024
 

Regardless of your opinions about China, you are undoubtedly aware of our collective challenge to improve cross-cultural communication and work more collaboratively. Prior misunderstandings that could more easily be forgiven or even funny are more contentious today and require a higher level of awareness to reconcile. COVID-19, Trumpism, and heightened nationalism in the Xi era created a perfect storm of skepticism on both sides that will cascade into dysfunction without new communication patterns to combat its fatigue.

Today, we will discuss a better approach to elevating cultural sensitivity, improving adaptability, and mastering virtual communication tactics that are essential for addressing our post-COVID-19 cross-cultural communication challenges. Being aware that there are solutions to these challenges will ensure you can create more constructive communication patterns and master the complexities of doing business in the Chinese arena today.

Today, we will review seven factors in the new post-COVID normal that significantly influence communication patterns and behavior of business counterparts in China.

  1. New language barriers
  2. Controllable vs. uncontrollable factors
  3. Trust & relationship building (Guanxi)
  4. Digital communications dependency
  5. Cultural sensitivity & self-awareness
  6. Rising geopolitical tensions
  7. Emotional & mental health issues

Language Barriers

Learning new languages used to be universally perceived as a good thing, but what happens when it cannot be taught in the context of a different culture? Against this backdrop, cross-cultural understanding and acceptance are enhanced through Guanxi relationships, and vital nonverbal cues during in-person interactions help convey positive sentiments that translations cannot.

Overreliance on virtual communication tools and increased travel restrictions have relegated interpreting cultural nuances to poorly translated interpretations and increased subconscious biases on both sides. I used to say, "Knowing how to speak Chinese doesn't mean you know what to say in Chinese," but today, we often cannot start our conversation with a handshake and end with a pat of affirmation.

Controllable vs. Uncontrollable

Between all the post-COVID "new normal" adjustments of developing constructive and prosperous business relationships in China, we must condition ourselves to focus only on controllable factors, without emotions. Lockdowns and travel restrictions forced business communications into virtual environments, which is "uncontrollable." How we adjust our attitude, mindset, and approach toward our counterparts in China is "controllable." How we interpret their behavior is "controllable," as is our willingness to reimagine our biases and prejudices.

A significant portion of the global workforce continues working from home even though the worst of the pandemic is over, so losing the benefits of in-person interactions isn't exclusive to doing business in China. We need to examine how Chinese companies and workers are adapting to new ways of collaborating and how the dynamics of cooperation evolve when there are fewer Guanxi deepening activities to sustain trust in the Chinese cultural context.

Trust and Relationship Building

Deepening Guanxi is the backbone of forming successful business relationships and partnerships in China, and this was primarily accomplished through in-person interactions. The pandemic changed that, perhaps forever, which means we must develop new ways to demonstrate and reciprocate goodwill to supplement fewer opportunities for in-person interactions. Step one is to be aware of this new normal. Then, we must develop tactics to thrive within the new realities.

How do we build trust within China's high-context culture virtually? What cross-cultural communication skills are needed to demonstrate goodwill in a virtual environment?

Digital Communication Dependency

Cross-cultural communication between Westerners and Chinese people has always been challenging. Still, several new variables have emerged in the post-COVID era, driven by greater reliance on virtual meetings, complex perceptions about China's ascension in relation to the role played by the United States, and reduced to nonexistent face-to-face interactions to develop Guanxi.

Since China opened to capitalism in the early 1980s, businesspeople have relied on in-person meetings and face-to-face interactions to build relationships and trust (a.k.a. Guanxi). While China has led in adopting social media platforms like WeChat as a communications, marketing, and productivity tool, they were complementary for developing the essential Guanxi necessary to deepen mutual trust in the Chinese business arena.

During the initial COVID outbreak in China, cities like Shanghai were locked down for multiple months. New variants made the virus impossible to track and contain. As a result, new interaction patterns that relied heavily on digital communication platforms like Zoom, Teams, and WeChat emerged. Side effects include increased screen fatigue during virtual meetings and exacerbated misunderstandings from participants deprived of vital non-verbal cues.

Cultural Sensitivity and Awareness

Chinese business culture and thinking are rooted in thousands of years of habits and traditions. Still, certain perceptions have evolved since the pandemic, especially among younger demographics. Some changes directly relate to the post-COVID new normal, while others relate to a shift in Chinese national priorities. At the same time, we must be aware that geopolitical tensions, state-controlled media narratives, and a greater sense of self-determination influence evolving attitudes toward foreigners.

Without the deeper Guanxi relationships created from frequent in-person interactions, it is crucial to interpret Chinese communication styles correctly and understand how your Chinese counterparts are adjusting to communicating virtually. Understanding Chinese LIYI (利益 Lìyì) considerations and their underlying motivations is now even more critical.

Geopolitical Tensions

The "one China" question has existed since 1949, and geopolitical tensions between democracies and authoritarian regimes are nothing new. The question is how heightened tensions seep into our broader perceptions and subconsciously prejudice our communications. Before COVID, business interactions were primarily focused on business-related matters. Few people allowed geopolitics to affect their business decisions, and even fewer allowed it to influence them emotionally.

Today, especially in China, this is no longer the case. Part of this shift is attributed to changing business conditions and new post-COVID ways of working, while other adjustments come from heightened paranoia of repercussions from Chinese authorities. The tone and content of business communications are more often adjusted as political awareness reminds everyone to avoid costly missteps. Increased Chinese nationalism is genuine among specific demographics, and sidestepping politically sensitive issues is paramount for anyone doing business in China. 

Emotional and Mental Health Strains

Depending on income status, the COVID-19 pandemic caused different levels of stress and mental health issues. In America, executive compensation rose to all-time highs, while overhiring in high-tech industries led to massive layoffs afterward. For context, inflation affects low—and high-income families in dramatically different ways.

Now imagine the impact of China's housing crisis, youth unemployment, and draconian lockdowns that lasted multiple months on Chinese psychology. China blames America for its ills, just like American politicians blame immigration for many of ours. In that context, imagine your Chinese counterparts' increased economic pressures and workplace stress from working 996 under these conditions. How do you interpret their attitude and approach in a virtual setting, and what adjustments are needed to reach the same level of cooperation?

Conclusion - The Way Forward

In the new normal post-COVID, Chinese-Western interpersonal and cross-cultural communication issues have been magnified by fewer in-person opportunities to deepen Guanxi. At the same time, geopolitical tensions and media reporting amplify the underlying distrust and skepticism. Cultural sensitivity, while important, must now be coupled with even greater self-awareness to be impactful. We must become aware of our biases and prejudices, their originations, and how to sideline them pragmatically inside the Chinese business arena.

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