I was recently discussing China Speed with a business contact Marcus Pentzek, on LinkedIn, and I thought I would expand on it a little here, not just from a business POV, but along with some Chinese cultural insights.
The problem we discussed revolved around how Chinese companies tend to operate very quickly, much faster than overseas companies and markets are used to. Sometimes this results in positive outcomes, but it can also lead to self-sabotage and unhappy overseas business partners.
If you follow me on LinkedIn or YouTube, you’ve likely noticed that I often talk about China Speed. This refers to the combination of factors that have enabled Chinese companies to move rapidly toward global leadership in areas like AI, robotics, and new energy.
While close alignment between industry hubs and national-level planning is an important part of this speed advantage, company-level speed, which means the willingness, or even basic need, to move fast, is also important. And this company-level speed is an area where Chinese companies can run into trouble.
Specifically, Chinese companies often feel pressured to try and grow very quickly in overseas markets, simply to survive, which can often be unsustainable. This can happen for several reasons, including:
- High-speed, cutthroat competition in China’s domestic market
- Misunderstanding overseas consumer buying habits
- Applying domestic, high-pressure Chinese sales approaches to overseas markets
The discussion with Marcus made me think of several common Chinese idioms that are used in business scenarios, and I’d like to share them below.
Looking at Chinese Idioms on Gain & Loss
However, here I’d like to push back on common stereotypes that the negative business practices, caused by the above reasons, are due to some inherent traits of the Chinese psyche.
Some Chinese idioms, in use for hundreds, if not thousands of years, provide ample evidence that the Chinese have long understood that moving too fast can cause more loss than gain. They’re also fun to slip into conversations, and can provide added meaning and context that translations don’t convey.
Here are a few I enjoy:
Kill the chicken to get the eggs (杀鸡取卵 ; shā jī qǔ luǎn)
This idiom refers to taking actions to gain something immediately, but in the process destroying the source of future, ongoing benefit.
In a business sense, it can often mean pursuing short-term wins at the expense of long-term value. This is often seen when sales teams close a deal by over-promising, cutting corners, or sacrificing trust.
Drain the pond to catch the fish (竭泽而渔; jié zé ér yú)
This idiom refers to a person wanting to get a fish now, but ensuring there are no fish left for the future.
In business, it can refer to extracting short-term value from a market, channel, or partner without investing in sustainability. This can include squeezing distributors, over-discounting, or flooding the market to the detriment of brand value.
Pull up the seedlings to help them grow (拔苗助长; bá miáo zhù zhǎng)
This idiom refers to someone impatient with how slowly their crops are growing and pulls them upwards (literally) to help them grow, only to damage them in the process.
In business, this can refer to unrealistic sales targets, constant changes in strategy and direction, and expecting/pushing for immediate results in new markets.
Closing: What You Should Remember About China Speed
For overseas businesses and professionals concerned about the ill effects of China Speed at the company level, the most important thing is to first remember that it does not come from any malicious intent.
That said, it’s still important to be aware of the potential risks and plan accordingly.
For companies looking to work with or partner with Chinese firms, it’s very important to understand that there will almost always be a big gap in the speeds at which the two sides operate.
This speed comes not just from how they have been shaped and honed to behavior by domestic market forces in China. It also comes from the intense sales pressures that Chinese companies and professionals are under when expanding overseas.
But speed without alignment often leads to similar failure patterns, and without cross-cultural experience, both sides may not realize where things went wrong.
For overseas companies looking to work with and succeed with Chinese business partners, make sure you can set up and manage effective alignment mechanisms.
These can include using Chinese APPs to keep in touch at the speed Chinese are used to, finding trustworthy advisors to help you understand nuance and meaning in culture and business, and making regular visits to China to build relationships in person.
In closing, I’m not here to discourage you from working and partnering with Chinese companies. Chinese companies can bring a lot to the table. But the key is understanding how their culture and domestic business environment shape their behavior and expectations, and to plan accordingly.
If you’re interested in learning about other Chinese idioms and sayings that can be used in business and in life, feel free to view my past articles under the category “Chinese Wisdom“.
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