Neo‐confucianism: the bane of foreign firms in China

Abstract

Explores Chinese culture and the problems foreign firms and governments encounter when dealing with China. Emphasizes Confucianism’s dominant cultural tradition in China and attempts to explain it to improve foreign firms’ chances of success. Describes Confucianism as a way of living, incorporating the principles of humanism and the notion of filial piety. Mentions the five cardinal relations, harmony and Neo‐Confucianism’s “Principle of universal truth, order, law, production and reproduction”. Assesses the implications of social inequality, social ritual, familism, guan xi (connections), face, and sun yung (mutual trust) for foreign firms. Concludes that foreign firms wishing to do business with China need to understand the labyrinth of Confucianism.

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