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Management Assessment

Challenges that the Chinese CEO may face in Australia

Australians are always mindful of not exhibiting the notion that they are better than their compatriots which may be a little bit different to the Chinese culture which recognizes seniority in terms of global competition. Additionally, Australians value authenticity, loathe pretentiousness and sincerity (Birkinshaw 2003, 33). They often tend not to dwell much on their achievements or their academic credentials, and they tend to hate and distrust those individuals who brag about their technological and innovation achievements. The Chinese CEO may find this challenging since they always like individuals to appreciate their efforts in terms of technology and rapid innovations and learn about the Chinese culture as well. Establishing ways to balance between their image, social responsibilities, as well as their strategies may also be a major challenge to the Chinese CEO (Unning & Lin 2007, 65).

Moreover, Australians always prefer people who are humble, modest, self-deprecating coupled with a sense of humor. Australians downplay their success which may make the Chinese CEO believe that they are not achievement-oriented. The Chinese CEO would expect to be greeted in a very formal way with a title and a surname but on the contrary, the Australians are not known to be very formal which makes their greetings very relax and casual. The Australians culture allows Australians to refer to individuals using their first names including in the initial meeting. When it comes to gift giving, small gifts are allowed to be exchanged between close friends, family members, and neighbors. Besides, in Australia sanitation workers and other tradespeople may be offered a small amount of money, a six-pack of beer, or more wine as gifts (Birkinshaw, 2003, 33).

However, this may be challenging to the Chinese CEO owing to the fact that, according to the Chinese culture, surprises and gifts are a very delicate issue and to some extent, they may be viewed as bribes in meetings. If an Australian invites you for dinner, it is often polite to carry some flowers or chocolates or a better wine quality (Day & Greguras 2008, 97). Besides, surprise gifts are only allowed to be opened when received. Many Dinner invitations to Australians’ home are basically for a barbeque which is accompanied by wine brought by the guest for their very own consumption. However, the Chinese CEO would expect a dinner invitation to comprise of some Chinese foods as an appreciation of their culture. In some Australian informal barbeque dinners, guests may be required to bring their own meat, and they are supposed to arrive on time which is very different to the Chinese dinners where a visitor is not expected to carry their own food when invited to dinner. It is viewed as a good gesture in Australia help the dinner host in the preparation and clearing up after the dinner (Garnaut Song & Woo 2009, 69).

In Australia, calling cards are exchanged without any formal ritual at the first initial introduction. In China, however, calling cards should be issued with both hands, and it is disrespectful to write on the calling cards. Australians are well known in getting down to discussions as quickly as possible with a limited level of small talk since they are more direct, and they would expect the Chinese compatriot to be the same. Australian’s negotiations do not absorb much time since bargaining to them is not customary and they expect the first proposal to give a very small margin for discussion as opposed to the Chinese CEO, who would expect the discussion to be initiated by a small talk about their culture, family, or any other related matter. Australians hate high-pressure methods of discussion (Nicoll Brennan & Golley 2013, 13). Meetings and appointments in Australia are deemed easy to schedule as compared to the Chinese, who require being informed in advance before confirming their attendance. It is important to present your discussion with figures and facts, avoid fake claims and hype, and avoid attaching emotions to your presentations. In this case, no family discussions in meetings which are very much different to the Chinese culture which appreciates it much when their family is discussed in meetings.

Concerns of the local community and the host country regarding the CEOs operations and plans set in place to deal with such concerns

In Australia, when a company CEO from a foreign country such as China is making investment decisions, the company is advised by the FIRB-Foreign Investment Review Board that deals with the proposals of foreign investments and in the process, advises on the interest of Australia as a country (Viñuales 2012, 13). However, the responsibility of determining how best the company will work with the government lies in the hands of Haidi Lao Company and the Australian Treasurer. Additionally, Australia as a country has tried to control and liberate trade via FTAs-Free Trade Agreements and it is therefore a requirement that Haidi Lao Company honors those stipulations and requirements postulated under those agreements (Garnaut Song & Woo 2009, 79).

However, the local community are of the opinion that, the new Foreign Trade Agreements do not seem to have modernized the foreign investment in Australia as well as increasing the required transparency when it comes to foreign investors (Enright & Petty 2013, 45). Another concern the Australian people raised is that the authority and power, which the treasure holds when it comes to refuting business transactions, seem to be illegal, or rather not in accordance with the national interest. The local community suspects that most foreign investors including Haidi Lao Company will see the levied price as relatively a minor fee to pay for deal confidence. To help solve the concerns of the local community and Australia as a country, the operations of Haidi Lao Company will be according to the stipulate law and customs of Australia’s Free Trade Agreements and culture respectively (Backaler 2014, 16). Besides, the Chinese company will ensure that their business dealings in Australia are established on mutual understanding which in the end will help establish mutual trust between the Haidi Lao Company and the Australian Investors based on common commercial ground. Prior to investing in Australia, Haidi Lao Company will ensure that it notifies the government of Australia and obtain an approval before going ahead to invest in Australia in order to show to the local community that, the company is indeed working according to the interest of Australia as a country (Wei 2000,103). Besides, before visiting Australia, it will be important to review the beliefs, values, and norms of the Australian people in order to avoid issues of culture shock and get to understand what is expected of Haidi Lao Company in its operation in Australia.


Backaler, J. 2014. China goes west: everything you need to know about Chinese companies going global. Basingstoke, Palgrave Macmillan.

Birkinshaw, J. M. 2003. Future of the multinational company. Chichester, John Wiley & Sons. Ltd.

Bungenberg, M., & Hobe, S. 2015. Permanent sovereignty over natural resources. N=980103.

Day, D. V., & Greguras, G. J. 2008. Performance management in multinational companies. Singapore, Lee Kong Chian School of Business, Singapore Management University.

Enright, M. J., & Petty, R. 2013. Australia’s Competitiveness From Lucky Country to Competitive Country. Hoboken, Wiley.

Garnaut, R., Song, L., & Woo, W. T. 2009. China’s new place in a world in crisis economic geopolitical and environmental dimensions. Acton, A.C.T., ANU E Press.

Nicoll, G., Brennan, G., & Golley, J. 2013. The Australia-China investment relationship: law, governance and policy.

Unning, J. H., & Lin, C. 2007. Multinational enterprises and emerging challenges of the 21st century. Cheltenham, UK, Edward Elgar.

Viñuales, J. E. (2012). Foreign investment and the environment in international law. Cambridge, Cambridge University Press.

Wei, Y. 2000. Investing in China: the law and practice of joint ventures. Annadale, NSW, The Federation Press.