Communication and Hierarchy

Unless you speak Chinese it can be difficult to conduct business in China, without the aid of a
translator. Despite the thin layers of English speakers exist in China; communication can be
slow which can result in the dangers of misunderstanding and mistranslation. Chinese find it
difficult to say “No” since they believe it causes embarrassment or lost of face.

The Chinese use an intermediary to deliver bad news, someone who can soften the impact of
the news and preserve good will within the relationship as much as possible.

UK countries tend misunderstand Chinese body language because they tend to be very
impassive. They use very little visual body language; hence the reason UK countries interpret
this rigidity as unresponsive.

The British and Chinese are almost similar in their use of diplomacy when communicating.
The British place diplomacy before directness when communicating. The British uses
language in a coded manner and prefer to say unpleasant things using more acceptable
phrases.

In business situations the British unlike the Chinese use humour in tense situations. Humour
is used as a tension release method in UK business. It is believed that this keeps the situation
calm and non-emotional. Humour is a respected communication measure at all levels in
British businesses.
 Minimum Wage and Vacation Benefits

http://www.woodlands-junior.kent.sch.uk/customs/questions/work.htm

http://www.mercer.com/summary.htm?idContent=1360620

http://www.chinaunique.com

http://projectbritain.com/regions/eastEngland.htm

Labour rates vary from region to region in China. In southern parts of China unskilled direct
labour may cost 400 RMB (Renminbi) per month or $50USD per person. The same position
in Shanghai may cost 1000 RMB per month or $125USD per person.

Chinese employees are entitled to five days’ paid vacation if the accumulated service year is
more than one year and less than 10 years; 10 days’ paid vacation if the accumulated service
year is more than 10 years and less than 20 years. UK companies entering business in China
may choose to be a bit generous and provide employees with additional holiday which are
celebrated in their home country.

The Chinese government stipulates a five-day workweek with no more than 8 hours a day
and no more than 44 hours a week in the Labor Law of People's Republic of China. In China
companies usually work from 8:00am – 5:00pm, 8:30am – 5:30pm or 9:00am – 5:00pm.

The UK has three levels of minimum wages, £5.80 per hour for workers aged 22 years and
older, a development rate of £4.83 per hour for workers aged 18-21 inclusive and £3.57 per
hour for all workers under the age of 18, who are no longer of compulsory school age.
Monthly wages are dependant on the amount of hours and age. Employees in London receive
a minimum wages of approximately £2 more than the national minimum wage. This is due to
the higher cost of living in the capital.

Effective from 1 April 2009, a worker in the UK is entitled to 28 days of annual leave each
year (up from 24 previously). Public holidays (of which there are eight days in the UK) may
count towards the employee’s annual leave entitlement. In the UK most employees work a
five day week starting from 9am to 5pm.
 Staff Recruitment

Businesses establishing in a wholly foreign owned business in china can recruit

staff directly by engaging in written contracts staff. Failure to do so can
result in penalties. Companies who fail to engage their staff in a written
contract written contract within the first month of employment are liable
to pay staff double their remuneration. If this gap continues for one year
in addition to paying them double the employees will automatically have
an open end contract which makes it harder to terminate their services.
This may cost the company since it will have to pay them a higher
severance pay and still face fines.

Companies setting up businesses in China may think that staff

recruitment is cheap but depending on the skill required that is not the
case. China lack skilled senior level management particularly with
English speaking skills. It can be difficult for businesses establishing in
China to engage in recruiting staff with the required skills and may revert
to employing ex patriot to fill the skill gap. This may incur higher costs
for the company, since wanting to recruit staff with skills which are in
short supply they will need to pay the appropriate salary which may be
equivalent to the UK and other western countries. In addition to salaries
being appropriate, the company’s salaries must also be competitive with
other businesses inorder to retain that skill.