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Business Culture in Zhejiang

Situated on the east coast, Zhejiang has a long commercial and seafaring history. Over time, Zhejiangese have become known for their creativity, path-breaking spirit, free-thinking tradition and matter-of-fact attitudes.

More than 2,000 years ago, an official from Zhejiang named Fan Ni gave up his office and became a successful businessman. During the Tang Dynasty (618-907 AD), Ningbo and Wenzhou were famous trade ports, and Zhejiang businesspeople regularly traveled from Ningbo to Japan for business. After the Opium War in 1840, Ningbo and Wenzhou were opened as international trade ports and became early bases of modern Chinese industry. Ningbo gave rise to one of the most powerful business groups in Shanghai in the early twentieth century. Since reforms began in 1978, Zhejiang township enterprises have developed rapidly, and the city of Wenzhou has become famous for its thriving private sector.

Zhejiang people use their sophisticated social skills to their advantage in business. During negotiations, for instance, Zhejiangese tend to say little about themselves, letting their prospective business partners speak first and thus feel more knowledgeable and authoritative. In handling relationships, Zhejiangese excel in adjusting their tactics to the social status, position, purpose and perspectives of their counterparts.

There are basically two prominent groups of Zhejiang businesspeople: those from Ningbo and those from Wenzhou. Ningbo businesspeople have a reputation for leaving home to seek their fortunes. Shanghai was traditionally the main base for Ningbo natives starting businesses in China, while Hong Kong was the main base for overseas Ningbo businesspeople. The only two world-class Chinese shipping tycoons were Ningbonese: C. Y. Tung (the father of Hong Kong's current chief executive, Tung Chee-Hwa) and Yue Kong Pao. Like the Shanghainese, Ningbo businesspeople are familiar with both Western and Eastern cultures (Ningbo was one of the treaty ports opened to foreign trade in the late Qing Dynasty) and thus are considered sincere and generally enjoy a good reputation among their clients.

Coastal Wenzhou is surrounded by mountains and open seas. Since ancient times, Wenzhounese have taken pride in running businesses. Today they are not only known for their intelligence, but also for their business acumen. Wenzhounese are well known for their "thick face" for not fearing rejection and for selling their products throughout the country with smiling faces, endless persuasion and worn-out shoes. Wenzhou businesspeople have spread out all over China and the world during the reform period.

People from Wenzhou are not picky about how they make their fortune. They will deal in low-end items that others disdain, like buttons and cigarette lighters, and earn riches quietly. Most of them also like being their own boss and are willing to take risks to do so. One recent example is the story of young entrepreneur Wang Yao, who since 1991 has audaciously negotiated with six airlines to open more than 50 domestic charter lines.

For more on Hangzhou, click here
For more on Ningbo, click here

Source: This is an excerpt from an article originally published in the Sept-Oct, 2004 .issue of the China Business Review. Reprinted with the permission of The US-China Business Council, Washington D.C.

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