Business cultural differences between China and Germany

Around $204.77 billion worth of goods and services Germany imported from China in 2022. Meanwhile, Germany’s export to China in 2022 is worth around $113.38 billion. Such huge numbers underline the importance of China – Germany trading relationships for both countries. But what are the difficulties that business owners from China and Germany bump into when trying to set up mutual business relationships? Learn what are the main business cultural differences between China and Germany and how to overcome them in the article.

Work/Life Balance 

In the German language, there is a word “Feierabend” that literally means the end of work. Feierabend is the time when you do not think about work and dedicate your free time to hobbies, friends and family. At the same time during work time, there is no chance that Germans will think about something except work. Thus, neither people nor business owners do not like to mix work and life.  

At the same time in China and many other countries, it is commonly adopted to spend time with your colleagues after work or during weekends. Also, you can easily discuss your private problem with the boss once you work together for a longer time. It is believed that team-building activities improve the effectiveness of work.

The vision of a successful business relationship 

Another important difference between both cultures is hidden in the perception of how to build and what to aim for when setting up business relationships. Germans tend to focus only on the tasks to complete without bothering to learn a lot about their partners. 

Meanwhile, the Chinese usually become the most efficient task-oriented workers only when they have a good relationship with their partners first. The trust and understanding that they have common values with the partners is the key to a successful business relationship with businessmen from China.

Communication peculiarities 

As a rule, German people are very direct and do not like to circle around key topics and always go straight to what should be done. Also, Germans can easily give fair feedback and openly criticize someone’s work.   

Such a direct communication style in Chinese culture is usually considered rude and damaging to business connections. In China, it is more common to smooth corners and give subtle feedback without direct criticism.

Attitude towards uncertainty 

Any kind of uncertainty (except risk) is the biggest enemy for business in Germany. Local people and businesses like to stay in control of everything. That is why Germans do not break rules, plans, or promises. 

Chinese people have a much more optimistic and flexible attitude towards uncertainty. Also, compliance with rules frequently depends on the situation and current circumstances of Chinese businessmen.

Time perception

Sticking to deadlines and strict punctuality is like a religion in Germany. That is the way Germans show their respect to their business partners and what they expect from their counterparts as well. 

In contrast, the Chinese treat time as a flexible substance that can be easily adapted. If there is a good reason to be late for a call or overdue deadline, it will not damage the business relationships with Chinese businessmen.  

Hierarchy pyramid

The distance between different levels of hierarchy in any German company is quite small. As a rule, bosses are a real part of the team and their decisions can be publicly questioned. The subordination is not abandoned completely, but workers are usually aligned in Germany.

Meanwhile, such horizontal alignment is rather a rarity in China. A strict hierarchy is an order that must be respected by every worker in the company. Consequently, the boss’s decisions are always treated as right and indisputable.  

Individualism vs collectivism

Ever since childhood people in Germany are taught to express their individuality and never sacrifice their own goals to please society. That is why German workers are more likely to stand out from the crowd and express their individuality in the workplace. 

However, due to the peculiarities of Chinese culture, for the local people, it is usually acceptable to become a part of a team for the sake of results.

The touchpoints 

Even if cultural differences between Germany and China seem crucial, looking for the touch points is the best way to deal with them. The experience proves that collaborations between businesses from these countries can be very productive. Moreover, Germans and Chinese are usually both hard workers and target-oriented people with a clear understanding of their goals. 

How to overcome differences?

Regardless of any cultural differences or other troubles that may appear when setting up business relationships with Chinese/Germans, Boost2Be knows how to overcome them. Our rich experience and proven results allow us to say that we are very familiar with both business models and we know how to make an effective mix.