Reflection on Key Issues in Doing Business in China from a Cross Essay

Reflection on Key Issues in Doing Business in China from a Cross Cultural Perspective. (Russia) - Essay Example Nevertheless, since the collapse of the USSR the two nations significantly improved their relations because they managed to settle the issues of land border by creating cross-border cooperation, controlling illegal migration and setting up vital mechanisms. Background information China and Russia share various similarities but they also have marked differences; for instance, the two countries are large nations because China has a huge population and Russia has the largest territory in the world. The two nations are multi-ethnic and heterogeneous but they are dominated by one group like in China the Han and Russia the ethnic Russians. Currently, the two nations are essential in terms of their economic potential as well as military power; moreover, the two nations are taking pathways toward capitalism. The two nations lack sufficient regulatory environment and have been for many years under the rule of a communist party and in the case of china, the party considers itself above the law . In the two nations, the existing rules and regulations can easily be violated because some written contracts have little value since personal connection along with dyad-based reciprocity prove to be substitutes for reliable institutions. Besides there are differences between China and Russia because China is considered to be a rising superpower while Russia is believed to be struggling to capture the lost glory after being a superpower for more than 50 years. Moreover, the two nations follow different paths toward capitalism with china adopting incremental approach to market reforms while the Russians rapidly replaced central planning system with market-based mechanisms with the aim of developing new market institutions (Buck, Filatotchev, Nolan and Wright, 2000). China has been a renowned success story in implementing reforms and consistent growth because the nation’s annual growth rate in the past two decades exceed 10% and is among the highest in the world. In contrast, Russia changed its position as the second largest economy during the Soviet era to 12 position currently and the country’s GDP growth rate is among the lowest partly because of its stagnated private sector (Wilson, 2004). Over the years, China has come to be recognized as a moderately low risk nation that offers high rates of returns, while Russia risk throughout 1990s was the highest and offered low returns because of privatization of manufacturing firms. Cultural similarities between China and Russia In the Chinese society, family remains the cornerstone with reciprocal obligations being which are not limited to the family and kinship but rather extended to non-kin ties where individuals are expected to help one another fulfil their obligation to family members. In China, individuals tend to prioritize group interests than their own and make decisions that can be detrimental to an individual if the decision is collectively beneficial. However, through my experience collecti vism in china has been misrepresented to be a negotiation for individual interests or well-being, which goes against the assumption that group interests are the best guarantees for an individual. Nevertheless, the Chinese society cultivates strong relations where everyone is responsible for other members within the group. As well, the Russian culture is considered