China’s Entrance into the WTO

A paper which explores the need for total re-engineering of the Chinese business process after China enters the World Trade Organization (WTO).

The change from an economy in which production levels, prices and even purchases are dictated by a higher government authority, to free capitalism comes as a culture shock to many Chinese, especially those of the old management school. This paper focuses on the need and willingness of those involved in Chinese management to change their ideals and accept this new way of thinking as China prepares to enter the World Trade Organization. This paper answers two primary questions (1) will traditional Chinese be willing to accept the new business model and (2) does the amount of exposure to Western ideals have an effect on the willingness of Chinese managers to accept these new concepts?

Table of Contents
An Overview of the Reforms and Economic Position in China
OverChinese Culture and Quality Management,
E-Commerce and Re-engineering
Adapting Institutional Structure to Allow for Needed Reforms
Sample Size and Selection
Data Analysis Techniques
Statistical Analysis
Acceptance of New Business Structure Between Males and Females Acceptance According to Ethnicity
Acceptance in Regard to Age
Works Cited
APPENDIX I: Survey of Attitudes Regarding the Willingness to Change from Traditional Chinese Management Styles
Chinese workers and management tended to like everything the way it had been and the idea of change was not acceptable to them. The Chinese culture, with its Socialist roots entrenched a group approach to everything.10 This idea discouraged the idea of self-promotion through better education or experimenting with new ideas or processes. Saving face is important to Chinese culture. A manager will not accept criticism from peers or other managers. This is counter to the Socialist authoritarian management structure. As one can see, the ideas of quality circles, peer review and team approach are in direct conflict with established protocols in China. The group membership principle is the only resemblance to TQM that exists in Chinese culture.