Brazil and China Business Relations

Impact of cultural differences on multinational management styles.

On the example of Brazilian-Chinese Business Relations.

Brazil and China are among fastest growing economies in the world. They have a long history of business cooperation, which is regulated by international laws. China is more dominant economy in their union; Eastern tiger invested sixty billion into economy of Brazil last year and they plan to invest more in 2011. There are over thirty Chinese companies operating in Brazil with revenues over one billion dollars. All those companies including small ones have to hire local people to work for them. Chinese corporations must hire Brazilians according to the new law, which was accepted by Brazilian government. This law was adopted as an approach to prevent Chinese from bringing their own labor from China and taking jobs away from Brazilian youth (1).

China became biggest trading partner of Brazil in 2009, replacing the USA. China also has connections with Mexico, Chile, Costa Rica and Argentina. Unfortunately having all those multinational business relations in South America does not allow China to avoid conflicts when hiring local workers. Cultural differences between China and Brazil tend to create a lot of problems and make many Brazilian employees quit on their first day of hire. Brazilian business environment is relaxed and does not require direct control from upper management on every level of organization. On the other hand Chinese businessman are strictly punctual, extremely efficient with their workload and prefer their employees to be in the office all day long, so will be able to control them. Chinese management style is coming out of Chinese culture, which is bundled with communism, high productivity, and meeting deadlines. Brazilians are never on time, for them to be thirty minutes late does not mean to be rude, it is just the way they are; like Chinese people love rice.

Culture is a set of values, believes, habits and norms for...