Becoming familiar with a new people and culture is one of the most exciting aspects of traveling and moving. With a population of over 20 million, Shanghai is one of the world's biggest, most vibrant and most diverse cities. Getting to know and understand people in Shanghai will no doubt be a source of endless wonderment. On the other hand, it will also be a challenge that will require effort, patience, respect and, at times, a good sense of humor. Overall, Shanghainese are very friendly and welcoming to foreigners, eager to share their culture and learn from yours, and you won‘t have trouble meeting new people and building short- and long-term friendships and business relationships.

Before 1843, Shanghainese culture came from the ancient kingdoms of the Wu and the Yue, from Jiangsu and Zhejiang provinces. Since Shanghai emerged as a commercial center in the 19th century, the city has always been a melting pot, drawing people from all over China and the world. Its port location and infamy as a commercial hub have attracted migrants from the countryside for decades. And since foreign companies were welcomed in the 1990s, the number of foreign visitors has ballooned. Today, there are at least 100,000 foreign nationals on temporary residence visas living in the city.

Shanghai has long been known throughout China - and much of the world - as the nexus of East and West. Indeed, the city became known for its haipai (literally ’ocean culture*) well over a century ago after the Treaty of Nanking, when the first British traders settled on a muddy riverbank along the Huangpu. The reputation of Shanghainese as welcoming to foreigners and foreign customs gained currency during the century of Western control over the city from 1841 to 1937, when the city was considered a foreigners' playground. The Shanghainese are still proud of their international and cosmopolitan history, although Chinese from other parts of the country interpret this pride as arrogant, and even unpatriotic. On the other hand, other Chinese people can be considered by Shanghainese to be waidiren (outlanders) or tubaozi (country bumpkins). Indeed, many of the throngs of newcomers that have migrated to Shanghai over the past few decades have arrived from impoverished rural areas.

 

Locals at a cricket market

 

Young Shanghainese


First impressions often lead Westerners to falsely believe that Shanghai is a city blindly enamored by all things foreign. The common presentation of Shanghai as a rapidly Westernizing city where designer labels and KFC are the new face of the town is simplistic. There is a contrast between Shanghai's outward shell and the people that prop it up. Just scratch below the surface and the underlying adherence to Chinese tradition is obvious. Most Westerners with significant experience in-teracting with the locals will testify that there is far more to Shanghai than glittery new shopping malls and swanky restaurants.

This stereotype has been exacerbated by the emergence of a relatively affluent middle class, comprising primarily white-collar middle managers, who go to great lengths to appear wealthy and Western. The business boom in Shanghai, both domestic and foreign, has made Shanghai quite wealthy by Chinese standards. But this is an example of a superficial Shanghai masking a reality. Ordinary Shanghainese are better classified as residents of a developing rather than a developed nation. The governments own figures, which are widely criticised as inflated, calculate the city’s average disposable income at around RMB20,000: higher than the national average, but not enough to compete in Shanghai’s inflated housing market. Many of the sleek apartment towers are owned by outside investors or sit empty while rural migrants toil away during the night for a pittance to erect them as fast as possible.

 

Typical Shanghainese man


The pursuit of individual wealth is encouraged and even glorified in Shanghai, in stark contrast to the China of a few decades ago. Social status in Shanghai is largely a factor of material wealth. Shanghai has exemplified China’s economic boom and the Shanghainese have embraced economic opportunity and cultural freedom wholeheartedly. On the other hand, traditional culture still permeates Chinese behavior and perspective, and Shanghai is no exception.

Confucianism, though officially eradicated from Chinese society during the Cultural Revolution, is still very evident in all aspects of Shanghainese life and now even encouraged by the government. Shanghainese have great respect for hierarchies. You will find this in reverence to the government and to employment rank, and within families. This is in contrast to many Western countries where decisions are made collaboratively and more value is placed on the young than the elderly.

Also, despite the do-it-yourself disposition of many affluent Shanghainese, individual autonomy is not valued in Chinese society as it is in the West. In China, the individual is perceived as a small part of a larger nexus of social relationships. And, more important than merit, guanxi (connections) is what will propel a successful career or personal life. If you want to build successful business relationships in China, be prepared to lay the guanxi groundwork first, even if that means greeting the occasional sunrise after a night at karaoke bars. Apparently, 2,000-year-old habits are hard to break.

Though Shanghainese today enjoy a remarkable amount of freedom compared to a few decades ago, politics is still generally a tricky subject. If you broach any sensitive topics, such as Taiwan, Tibet or media censorship, be prepared for boilerplate answers. Younger Shanghainese are often eager to engage in these topics, though you’ll likely get sincere nationalistic responses followed by directed critiques at Western culture and values. Shanghainese are often very direct in their questioning, be it about your politics or your personal life, although it’s best not to take any offense. In most cases, this is genuine curiosity.

Women are equal to men by law, but in daily practice and in the home women are often considered as they were in traditional society: second to men. Male children are preferred over females by many couples, occasionally causing stress in terms of modern China's one-child policy. Shanghainese are considered more progressive than people in other parts of China, and women sometimes seek out a Shanghainese man because he is likely to maintain a more egalitarian outlook in relation to family duties and chores than men from other parts of China.

 

Locals chatting in a lane

 

Crowds on Nanjing East Road

 

Pedestrians on the Bund


SPIRITUALITY
The underlying principles of most social values in Chinese culture come from Confucianism and Taoism; which is the most influential of the two is a long debated topic. Confucianism is influential in Korea, Vietnam, Taiwan and - in different ways - Japan. It is based on the precept that humanity can be taught, improved and perfected by means of personal and communal self-cu^ tivation/creation. Virtue and moral perfection figure prominently in Confucian thought.

Taoism has had regional influence in Asia for more than 2000 years and notable influence in Western cultures since the 19th century. The Taof - literally path or way - emphasizes humility, moderation and compassion. There is a strong focus on nature and the relationship between man and the cosmos, as well as health and longevity. Taoist spiritual thought is intertwined with many aspects of Chinese culture, including martial arts and traditional medicine.
The relationship between Confucian and Taoist thought is so deeply rooted that it is difficult, if not impossible, to understand clearly where one begins and the other ends. The effect of modernity and Western thought on Chinese culture - felt acutely in Shanghai - has not made understanding by Western minds any easier to come by. It is, however, a fascinating endeavor to undertake and will most likely lead those who attempt the journey to a much deeper understanding of the vast differences between Eastern and Western thought. In our Books and Films section we have recommended a number of books that will help you gain a better understanding of the culture you are about to enter.

LOGIC
Logic is one of the most frustrating and difficult aspects of Chinese culture for Westerners to understand. Gaining a basic understanding of Chinese perceptions of logic will go a long way to alleviating potential culture shock upon arrival in Shanghai.

To start with, one must begin by assimilating the notion that while Western logic (Greek or classical logic) has influence in China, it is not the conventional wisdom (so to speak). In fact, the word 'logic' in Chinese is a transliteration from the English word and pronounced ‘luo ji’. Historically logic was studied in China under a contemporary of Confucius named Mozi (Master Mo); however, it was thoroughly repressed during the Qin Dynasty due to the harsh tenets of legalism.

Buddhist or Indian logic is perhaps the best way to understand Chinese logic, however Buddhist logic cannot be understood in terms of classical Western logic. It is, rather, a system in its own right influenced by the study of grammar and not mathematics as in the Greek system.

In simple, and hopefully understandable terms, Buddhist logic was not only logic for the sake of logic, it was also the philosophical basis for Buddhism itself. This is perhaps the most important distinction to make for the purposes of this section. The underlying principles of Chinese logic are rooted in Buddhist philosophy and thus quite different from Western logic. Add to this the influence of Confucian thought on Chinese logic and the rationale behind the actions of Chinese people cannot be explained as simply as a+b=c. It is better understood (or not) as a culmination of an intricate set of influences emanating from Buddhist and Confucian thought.

It’s quite possible that you are more confused after reading this section than you were before you started. Just remember that when you start asking yourself "Why in the world?” you probably won’t get a satisfactory answer. The confusion will eventually turn to fascination and reveal a world of thought that will never cease to amaze with its intricacies and eccentricities.

SUPERSTITION (OR BELIEFS)
It is a reasonably safe statement to say that many Chinese are superstitious to one extent or another, though the younger generation is certainly less so. That being said, it may be worthwhile as you read this section to ask yourself about common Western superstitions such as lucky number seven, horoscopes, etc.
Some 'classic’ Chinese superstitions:
•The number four is considered unlucky as it sounds similar to the Chinese word '(to) die'. White is considered unlucky as it is associated with funerals.
•A baby with wide and thick ears will live a prosperous life.
•Lucky wedding colors: red, yellow and white
•Unlucky wedding colors: black, blue and gray
•Never marry a person who is three or six years younger or older.

While some of these beliefs may sound strange, one only need reminisce about parents or grandparents and the beliefs they held (or hold) to see that the East and West are not that far apart.

 

Jing'an Temple

 

Worshipper at Jing'an Temple



GUANXI
Guanxi (pronounced 'gwanshee') does not have a sufficient literal translation in English. Many have attempted to quantify and describe what the term means in a way that is easily understood by Western standards of observation, yet there remains much confusion. One helpful explanation is that guanxi is a ^friendship with implications of a continuing exchange of favors'1. In other words, person A has something that person B needs or values. A is prepared to give this commodity to B and while A does not necessarily expect an immediate return on this investment, A does expect that in the future B will return the favor in some way.

This oversimplified explanation of the concept does not do justice to the pervasiveness, complexity or importance of guanxi in Chinese culture, however. The concept is taken very seriously by Chinese people and thus you should be aware that in cases where you would not necessarily expect it, obligation may in fact be incurred. In smaller cases where you ask a favor of a Chinese co-worker or acquaintance, the result of not understanding or returning the guanxi will result in little more than annoyance on the part of the person slighted. However, in business dealings, guanxi and your understanding of it - or lack thereof - can have a significant effect on the outcome of your efforts and your business's success.

In Western business practice, networking is commonly understood to be a valuable method of marketing oneself and business interests. Similarly, in China developing guanxi with a well connected business person can open up wide networks of contacts that would never have previously been available. The process, however, is informal, non-transparent and complicated, and thus not easily navigated by a Westerner new to the concept or even someone who has lived in China for years.

In business in China, it's extremely important to remember that while developing guanxi amongst suppliers, retailers, banks and government officials can be highly time and money consuming, it is essential, especially when your organization is in need. In many cases small gifts such as wine and cigarettes are a good way to open the door to a broader relationship.

The Chinese prefer to do business with those they know and trust, and for the most part that means a personal rather than a business relationship. A small gift is a show of respect and a sign that you are interested in developing this personal connection on which later dealings will be based.

A good rule of thumb when asking a favor of a Chinese person who is in a position to help you is to infer that you are in a position to help them as well at some point in the future. At this point, the person you have asked will consider both the cost to them in terms of their ability to help, as well as the value of what you could potentially offer in the future. It starts to get much more complicated when you realize that an agreement to help you may require that, for example, in the future, in order to return the favor, you may need to help this person’s brother help one of his friends so that some previous guanxi between the person you asked for the favor and their brother is resolved or created for future considerations.

If this sounds confusing, it’s because it is. Understanding that guanxi exists, that it^ important, complex and pervasive, will go a long way to helping you recognize the situations where guanxi applies when they arise. If you are involved in important business dealings with Chinese people from Hong Kong or mainland China it's certainly recommended that you enlist the help of an intelligent and trusted Chinese advisor to help you navigate the waters successfully. Be prepared to repay the favor in the future, however.

FACE
Understanding the Chinese concept of 'face' will make your transition to Shanghai much smoother; however, it is not easily understood. Though over simplified, face can be described as respect, honor, prestige, status and/or dignity. One can gain face by doing something respectable or honorable, lose face by doing something undignified or disrespectful, and give or take face from another by highlighting something good or bad that they have done. One can also save face by recovering from a potentially face-losing situation.

While this may sound confusing, similar concepts exist in many cultures around the world. The trickiest part is understanding what is or isn’t honorable, respectful, dignified or prestigious in Chinese society. In a stratified hierarchical society like Shanghai, what may be acceptable for one social class is certainly not for another. Foreigners themselves exist as a class apart and in many ways are exempt from the concept of face (though not always). What would be considered a completely undignified face-losing act by a Chinese person is often overlooked by locals when a foreigner is responsible.

This is certainly less true when a foreigner causes a local to lose face, and it is these types of situations that you should be most aware of, as they often result in what seems like (to a foreigner), intense outbursts of anger from the person who has just lost face, even if it was they who were engaged in a morally dubious act, such as trying to cheat you. Your public display of outrage at being cheated may cause the offender to perceive that they have lost face, causing them to go on the offensive, which usually isn't pretty.

If you suspect that you have become involved in a situation like this, it's best to act deferential if you want to defuse the situation. This will allow the offended party to save face and they will often act indignant toward you rather than admit any part in the problem. This is perhaps the most curious of all aspects of the concept of face. The display or indeed the whole event is played out in a manner in which everyone clearly knows what is going on and who was right or wrong. Right and wrong mean little
in cases of losing face. In fact, it's considered a faux pas to cause another to lose face and can itself be considered a face losing act.

In business, understanding face can be crucial to the success or failure of business dealings. During the often alcohol and tobacco soaked dinner parties that form the prelude to the signing of business deals, it is crucial that you provide your potential Chinese client or partner with a good dose of face in front of their colleagues or friends. Often this involves accepting their continuous offers of more drinks and cigarettes, praising them and certainly laughing at jokes whether they're funny or not. In doing so, you will most likely be building up some guanxi with them, which will be repaid in the form of favorable treatment in business dealings. Continuation of this favorable treatment may involve further face-giving dinner parties or other activities. These events also serve to solidify the personal relationships on which many Chinese business deals are based. The trust that comes from socializing with people and breaking bread together is certainly not uncommon in Western business practice.

Don’t expect to get the hang of face and guanxi immediately, as they are intricate and complicated concepts that are intertwined with each other as well as various aspects of social tradition, which are then applied differently by different people. Being aware that much more than meets the eye is actually taking place in social and business situations is an important step toward ensuring your time in Shanghai is positive and fulfilling.

ETIQUETTE AND CUSTOMS
Etiquette and manners in Shanghai are based on traditional values that have strong roots in Confucianism. Confucian philosophy stresses the importance of obligation, based on relationships which are hierarchical in nature. Duty, loyalty, respect for seniority, sincerity and honor are fundamentally important in Confucian thought and are thus at the base of what is considered to be proper etiquette. This aspect of Chinese society is difficult for many Westerners to understand, as the practice of proper etiquette is often very subtle but very important as well. In general, it is important to attempt to understand the existing hierarchy amongst groups of Chinese people, particularly in the workplace. Disrespecting the hierarchy is generally taboo, as it will cause a loss of face for those higher on the chain that are disrespected by those lower on the ladder. Careful observation of coworkers will provide valuable insight as to the nature of the hierarchy.

Here are some general guidelines for etiquette in Shanghai:
Greetings
•    Chinese handshakes tend to be light so don’t go in too hard
•    As a show of respect, Chinese may lower their eyes slightly - there is no need to return the favor, though prolonged eye contact should be avoided
•    Wait for your host to introduce you at small functions
•    In China, the family surname comes first and you should use it with a title until advised to move to a first name basis
Table manners
•    Your host will seat you as there is often a seating plan based on hierarchy
•    Refrain from eating until your host begins or tells you to start
•    Even though you may not like the food, it is important to try everything
•    Never eat the last piece of a dish
•    Rather than being seen as rude, burping at the table is a sign of satisfaction and considered a compliment
•    Leave a small amount of food in your bowl when you are finished, as this is a sign that your host has filled your belly Always refuse a second serving at least
Business etiquette
•    Relationships are the basis of business in Shanghai - once you have formed one, nurture it and don't neglect it, as this is considered rude
•    Shanghainese view business relationships as long term
•    Asking extremely personal questions is commonplace - don’t be offended
•    Punctuality is important - call if you are going to be late
•    Negotiations move at a snail’s pace - don’t get impatient
•    Respect the hierarchy and allow the most senior person in your delegation to lead
•    If you hear someone sucking air through their teeth, restate or modify your position as it is a sign of significant dissatisfaction
•    Never lose your temper, as it won’t help
•    Allow silences to occur and don’t feel the need to jump in right away
•    Price rather than quality is usually the most important factor
•    Don't be surprised if the signing date of your contract is determined by an astrologer or feng shui master
•    Expect and engage in a lot of small talk with potential business associates. They will want to get to know you better so that they are comfortable doing business with you
•    Always use two hands to offer and receive business cards
•    Closely examining the business cards you receive is a sign of respect
•    Never write on someone’s business card unless directed to do so
•    Your business cards should be in perfect condition
•    Never open with your best price
Gift giving etiquette
•    Always bring gifts of good quality sweets, imported spirits, flowers or "fruit for the hostess
•    Never wrap with white, blue or black paper -use red and gold
•    You can refuse a gift once or twice before accepting
•    Always give gifts with two hands
•    Never open a gift when you receive it
•    Fancy gift wrapping is important
•    Flowers should not be red or white
•    Bringing small gifts for the children is considered polite
•    Giving cash is acceptable, appreciated and given in red envelopes
 

Chinese handshakes tend to be light.

 

Wedding gift envelope

Present business cards with two hands

 

Give gifts with two hands and make sure they are wrapped decoratively.

 

FENG SHUI
To Westerners, feng shui is not an easily understood concept. The term literally means 'wind-water' and refers to the qualities of what is known in Chinese culture as 'qi' as it interacts with these two elements. Qi can be understood to generally mean life force or energy flow, and is a concept common across both Western and Eastern belief systems. Within the tenets of feng shui, it is said that "Qi rides the wind and scatters, but it is retained when it encounters water, Feng shui’s general aim is to improve life by adopting aesthetic practices that receive and retain positive qi, which provides good fortune.

Many different styles of feng shui are practiced but all have the general aim of orienting buildings, both inside and out, in an auspicious manner so as to retain positive qi and thereby improve the life and luck of those who dwell in, or are involved with the building. Orientation relative to bodies of water, the stars or direction are common considerations when a feng shui master advises on the construction of a building. Big development companies and corporations often spend large amounts of money on feng shui advisors in the hope that it will provide them with good fortune in their businesses. In recent years the practice has become more popular in the West, including in the United States.

In China, feng shui as a practice was designated a superstitious social evil after 1949 but has since returned to favor in many ways, though less than a third of the country’s population is said to believe in its merit. The study of feng shui is also considered a general taboo in many areas of China. Some common feng shui beliefs are:

•    Mirrors placed in the path of bad feng shui will deflect the bad luck, as the demons flee when they see their hideous reflections
•    Adding water in the right way to the design of a building will attract positive qi and good fortune
•    The numbers 4 and 13 are considered very unlucky. Drawing a circle around them will contain the negative effects
•    Placing guardian lion statues at the entrance to your house will protect it against bad qi

Chinese guardian lion statue

 

Feng shui compass


EDITOR'S EXPERIENCE
Upon arrival in Shanghai, the first job I took was as Business Director of the company that runs the city’s popular English-language magazine, That's Shanghai. It was a great experience in many ways, in particular with regard to working for a lo-cal General Manager. That's not to say it was good per se, but it was an education.

Shortly after I took up my role, sales be-gan to decline. Thankfully, as I had only just started, I could not be blamed for the downward trend that was beginning to emerge. Many meetings were had on the issue, replete with motivational speeches and threats of termination if something wasn't done to rectify the situation.

I found it curious that our fearless leader, while decrying the situation, offered absolutely no advice to any sales staff as to what they might do in order to improve performance. I found out later that this is often a common practice among Chinese managers. If they do not suggest an approach aimed at solving a problem, but rather simply order others to fix it, then they avoid losing face in the event their solution does not solve the problem.

Though not offering any direction to the troops beset with a seemingly intractable problem, he did bring in a feng shui master to our office to consult about possible problems with the office space that might be affecting sales. While I was not personally there on the weekend this consultation occurred, I was there when furniture was being moved and employees relocated to different areas in order to improve the feng shui of the building and thus our sales.

In retrospect, while I can’t say for certain whether his efforts were effective or not, I can say that sales continued to decline. It was 2007 and the global financial crisis had begun.

 

Source from: Expat Essientials

Help for Tenants

Proud Member of
Privacy PolicyTerms and Conditions