Republic of the Philippines

BATANGAS STATE UNIVERSITY

Gov. Pablo Borbon Campus I, Batangas City, Philippines 4200
COLLEGE OF ARTS AND SCIENCES
Tel. No. 980-0385 local 1125

Name: JESSICA I. LAXAMANA DR. ROSA ADELAIDA C. ECALNIR

Course: PhD-Language & Literature

Foreign Language 2

STUDY OF THE RELATIONSHIP BETWEEN

CHINESE AND FILIPINO IN BUSINESS

The Philippine Archipelago had been invaded by colonizers. They had ran our

country as overlords for decades. In contrast, Chinese peacefully came bringing silk, potteries,

merchandise and other products. It was obviously written in history that we have strong ties to

China for over thousands of years already. In was written that between the 10th and 16th Centuries

and before the Spanish Colonization, Chinese traders sailed to the Philippines. Their trades was

the beginning of their major influence and contribution within the Filipino thinking in business.

The Chinese people had opened our eyes to barter and flourished to what we call now as

business. In our time, Chinese immigrants and even businessmen had been an important factor in

developing our country. Almost every Filipino nowadays uses Chinese products. The coming of

the Chinese in our country had resulted to the realization of Filipinos to do business. The

massive intermingling of Chinese and Filipino genes has given us the reason to have a strong

business tie towards China. Chua (2003) said that Chinese Filipinos are well represented in all

levels of Filipino Society. Many of them play an important role in the Philippine business sector.

We can’t deny the fact that Chinese influences had been ingrained in our life until now.

From the food we eat to the products we use. We can also see everywhere that Chinese business

is one of the most prominent and influential in the country.

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BUSINESS INFLUENCE OF THE CHINESE:

Chinese and Filipino-Chinese people are some of the business owners, leaders and

influencers in the Philippines. For them business is powered by their Confucian roots and family

values. Chinese businessmen foster trust with clients and consumers by abiding lasting

connections. They value customer experience and sensitive to their needs. Filipinos have adopted

some Chinese habits like the asking of discount or the “Patawad”. Also our habit of bargaining

as a way of being thrifty was obviously taken from them.

The Philippines is home to many successful Chinese-owned businesses like:

(https://chinaphil.net/china-business-philippines/)

Lucio Tan. He was born in China and moved to Naga Province as a working

student studying Chemistry at Far Eastern University. In 1966 he worked in a

tobacco factory as a janitor and eventually worked his way up to become a tobacco

leaf dealer. With up to $4.3 billion worth in investments, he has pioneered

Philippine Airlines. Under his belt as well as the Philippine National Bank, Tanduay

Distillers, Asia Brewery and Fortune Tobacco Corp, his talent in the art of business

has made him a formidable player in the industry. (Philippine Airlines, Philippine

National Bank, Tanduay Distillers, Asia Brewery and Fortune Tobacco Corp)

John Gokongwei Jr., who started from the bottom by selling soap in   1930s.

He successfully turned his life around in the ever-changing Chinese business in the

Philippines. He is the chairman and founder of JG Summit Holdings, which covers

retail, real estate, malls, and media. Under JG Summit Holdings are Cebu Pacific,

Summit Media, and Robinsons Malls and Department Stores.

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Ben Chan in 1987 was working in a men’s boutique before conquering the local

retail scene. Bench is one of the first local world-class brands. The local brand now

covers apparel, cosmetics, furniture, and food. Ben is the chairman   and director of

Suyen Corporation which paved the way for the brand Human and Kashieca. His

business prowess has also brought international brands such as Aldo, The Face Shop

and Charles & Keith.

Jollibee is a well-loved, internationally recognized home-grown brand that is

helmed by Tony Tan Caktiong. He was born the 3 r d   of seven immigrant children. His

family ran a restaurant in Davao in order to provide education for the children. At

22, Tony Tan Caktiong started with ice cream, slowly expanding and hiring more

people to serve hamburgers, fried chicken and spaghetti. Jollibee knows the local

food culture, preferring a sweeter taste over traditional fast food. The king bee

continued his path to more businesses such as Mang Inasal, Chow King, and Burger

King.

Henry Sy is the godfather of Chinese business in the Philippines. Popularly

known as the father of retail, he started selling G.I. boots when he was young until

the collapse of their tiny store in World War II. But that didn’t stop his dream of

becoming successful. Henry Sy’s name holds on to retail, real estate, banking, and

malls, with an estimated net worth of $14.4 billion. These inspiring men all have

something very similar about them, starting out from small ideas to bigger dreams.

All of these game changers in the Chinese business in the Philippines never gave up

on their dreams and continuously challenged themselves to think bigger and better.

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Common Chinese Business traits and etiquettes:

 Concepts of “Saving Face” and “Giving Face” or Gei MianZi

 Appropriate respect is given to rank and seniority

 Losing face is a very serious embarrassment

Business Dress

 Men: Jackets for meetings and dinners

 Women: Business suits, blouses with high neckline, low heels to avoid

being taller than the host

 White is used in funerals so wear other colors in important occasions

 Avoid too much of perfume

Non Verbal Communication Customs

 When talking to each other, Chinese people stand very close. Personal space

is less important to the Chinese .The main reason is that it is a sign of

politeness and trust

 Less usage of hand gestures

 While having a conversation if there is a conflict, the important thing to

remember is to not get upset or angry because to the Chinese, only the

lower class or uneducated cannot control their emotions.

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  One should try to avoid saying "no" when answering questions. Instead, one

can respond with "I'll look into that" or "I'll see what I can do in this matter“,

etc.

 When one’s Chinese counterparts say 'No big problem' or 'The problem is

not serious', they usually mean 'There are still problems’

 In Chinese culture, the question ‘Have you eaten?’ or ‘Where have you

been?’ is the equivalent to ‘How are you?’ in North America

Chinese appreciate if foreigners know a few common Chinese words:-

 Nihao - hello

 Xinghui - it’s my honor to meet you

 Darao - excuse me

 Shipei - forgive my short leave

 Gaoci - time to leave

 Xiexie - thank you

 Zaijian – bye

Chinese Meetings

 People are expected to enter the meeting room in hierarchical order

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  The Chinese assume that the person entering the meeting room first is the

head of the delegation

The Business Card

 Cards should be printed in Chinese on the reverse and offered Chinese-side

up.

 The business card is treated with utmost respect

 Business cards are always exchanged on first meeting a new contact.

 Cards are held in both hands when exchanging and then scrutinized in detail.

What Happens at a Meeting

 Series of meetings, rather than just one

 Meetings are about building relationships and exchanging information

 Decisions are made in consensus style discussions

 This approach to meetings requires patience

 Boasting and exaggerating are investigated

 The Chinese do not directly say “no”

 Tendency to extend negotiations till the very end

 Patience, humility and less display of emotion are vital

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 At the end of the meeting, the Chinese leave the room last

 The Chinese prefer hand gestures to be kept to a minimum

 Personal contact like hugging should be avoided

 Shaking hands is acceptable

 Colleagues are addressed with title and last name only

 Direct eye contact is avoided

 The most senior person should be acknowledged first

 Unusual facial expressions and expansive gestures are best avoided

 Bowing is seldom used, except in ceremonies

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REFERENCES:

https://chinaphil.net/china-business-philippines/

Sharma, P., Chrisman, J. J., & Chua, J. H. (2003). Succession Planning as Planned

Behavior: Some Empirical Results. Family Business Review, 16(1), 1-15.

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