The Chinese Association and Its Role in China’s Open Society

Chinese society has undergone profound changes since reform and opening up. The changes in values and thinking modes are especially noticeable and worthy of study.

CSAUS aims to unite Chinese Americans, disseminate culture and promote friendship between China and the US. It has established ties and conducted exchanges with dozens of associations, political organizations and research institutes worldwide.

Education

Historically, the Chinese culture attached great importance to education, both inculcating values and teaching skills that would be needed for success. It has been an integral part of the society and a major vehicle for social progress.

In recent years, however, the educational system has come under criticism for being overly focused on test taking and instilling discipline that is detrimental to a free society. The system also lacks a strong emphasis on classes in the arts and physical education, which critics say create more well-rounded students.

NACA and its chapters promote the operational coordination and exchange among Chinese language schools. It also keeps a close cooperative relationship with the major Chinese language educational organizations in China and the United States, which helps to further the integration of the Chinese community into American mainstream culture. In addition, NACA has been a facilitator of cultural, educational and business relations between Chinese dignitaries and local government officials as well as with the community.

Culture

Despite being the dominant economic force reshaping international commerce, China’s business culture remains complex. A deep understanding of its cultural norms is essential for successful global businesses, as minor missteps can erode relationships and impact operational success.

Chinese work culture is deeply influenced by Confucian values like hierarchy, where respect for authority and seniority plays a critical role. This can make it challenging for foreign executives to foster open communication or receive feedback from lower-level employees, as they must honor hierarchical respect and avoid direct confrontation.

To bridge this gap, some companies are implementing innovative approaches that allow for flexible decision-making and individual recognition within a collectivist framework. The success of Chinese tech giant Haier demonstrates how this approach can boost productivity and foster collaboration. Additionally, promoting humility as an important leadership trait can encourage psychological safety for team members and improve performance. This can be accomplished by avoiding excessive displays of power, focusing on collaboration rather than personal achievements, and encouraging employees to discuss sensitive topics in private.

Politics

In China, voluntary associations operate in a grey zone. They are not fully incorporated into state management structures, but they do not cross certain lines that can draw interference and repression from the government.

A number of these groups have close ties to the Chinese Embassy and consulates, fostering links among local Chinese-language communities. Individuals may join such groups for a sense of community, or to gain status and business opportunities.

Many of these groups also play an important influencing and interfering role in the United States, often working closely with the government. This is particularly true of some groups that help with technology transfer, which is a major goal of the Chinese government.

Pompeo has called attention to an uptick in Chinese interference and influence in politics, business and communities at the state level. This includes Chinese diplomats pressuring U.S. governors not to travel to Taiwan, the de facto independent island nation that Beijing claims as a part of China.

Business

For many years the chamber has sought to influence not just the national business environment but also local governments. Early in the process, an article in one of the chamber’s magazines highlighted issues that members faced with Beijing city officials. These included a range of practical matters such as how to work with Beijing-level government, contract law and traffic and pollution issues.

This study explores the relationship between businesses and associations, using an exogenous shock in the form of the establishment of a regionally focused business association (HBA). We show that HBAs significantly increase firms’ cross-province M&As. This positive effect is stronger in regions with lower levels of marketization and in firms that do not have a Communist Party branch. This is because HBAs mitigate frictions by providing information and reducing transaction costs. Moreover, this effect is more pronounced when the HBA provides local expertise to its target province. This finding complements previous studies of the governance role of business associations.

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