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International Accounting

 

            The Chinese open-door policy in the past decade has greatly improved the growing trend of global integration of international business. Undoubtedly, the most dramatic changes have taken place in China. On the other hand, as a new member of the WTO, many Western businesses are considering Chinese markets more opportunities and hoping to exploit this vast potential.
             Chinese society, however, differs (tremendously) from Western societies in terms of cultural and social developments. It is very necessary for people who are interested in China or want (intend) to be (achieve) success in China to require an understanding (attain understandings) of its (the) unique Chinese culture. Chinese culture based on Confucianism. Confucius (551-479 B.C.), Chinese thinker, educator, politician and founding father of the Confucius' paradigm, has influenced the Chinese society and shaped the mainstream of Chinese cultural values for 2500 years. Its influence penetrated into all fields, from court politics to the everyday life of the ordinary people. Therefore, comparing Confucianism with Western culture helps people understand Chinese culture. .
             Confucianism stresses the social structure of the society based on a hierarchical order. China has a long history of being an authoritarian society: that is, Confucius's three essential relations between sovereign and minister, father and son, husband and wife. As a result, it is considered that China is a high index of power distance. Power distance reflects the willingness of subordinates to depend on the decisions and instructions of their superiors. Chinese people are more willing to recognise and accept a hierarchy of authority more easily than their Western counterparts as well as depending on the decision of their supervisors without questioning. In Hofstede's (1991).Chinese people have a stronger respect for authority (Bond 1991) and are prone to accept authority without question.


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