Thursday, January 03, 2008

Chinese business style and mahjong - the WTO column


Analysts of China's emerging economic force have been looking intensively at the country's cultural heritage to explain the Chinese way of thinking and operating. Confucius has been a popular focus point for theories on China's emerging market, but I have been sceptical about that, since only a very small elite has been exposed to this kind of teachings. Parts of his heritage might have found its way to the broader population, but I always found China's writing system a much more compelling explanation, forcing Chinese children at an early age to excel in memorizing and forcing their creativity - I do find Chinese can be very creative - in a very tight framework of existing rules, before they start to play with it. Then, playing with rules in any setting is a major Chinese asset, where my country men in the Netherlands are obsessed by sticking to the rules.

Only over the past holidays I started to realize how important it is for China observers to include mahjong into the way of framing China. Of course, I knew that mahjong was the most played game in China. Mostly in the summer when the windows used to be open, you could hear in every neighborhood the familiar clicking of the stones. When I was incidentally able to watch a game, mostly onlookers are not encouraged to join, I was amazed about the intensity the players threw themselves into this business. Although gambling and money can play a role, when no money is involved the game is no less intensive. Also, the time spend on this game must still outweighs the time internet users are playing games online. I mistakenly compared mahjong with the boring games I would play back in Europe, games that were mostly a social activity. Boy, was i wrong.
Over the past week I was invited to participate in same games. Friends of me were lacking a fourth person and, although a few initial misgivings at my side, I decided to participate. I must say, it was magic.
One of the better players kept an eye on my stones too and explained the rules of the game while playing. The game seems highly structured, but has some many rules that work out differently in different situations, it becomes a highly creative battle game. It demands very high analytical and strategic skills that seem simple as they are explained, but when the speed of the game goes up, experience starts to count.
Key of the game is grabbing fast opportunities the moment they occur. That happens mostly in a split-second. The better overview you have, what kind of stones have been played, what kind of stones are your partners dumping, the more sophisticated you can play. It does not help all the time: luck is a very important factor in the game, but with better skills you can make better use of that luck. In the first set of games, I won quite a lot and that was not based on my skills, although I did get very professional help.

Doesn't that sound familiar like a basic structure of doing business in China? There is no long term. In the long term there will be a new game with new opportunities, where you might be better than the previous time. Watching a fast changing environment within a rather rigid framework, is another feature needed to optimize your chances to cash in.

This game has been played by hundred of millions of Chinese and has been a training ground for - limited - business skills. So, when you want to know how to do business in China, it is better to play mahjong than learn how to write Chinese characters or read Confucius. One warning: people do get addicted. Don't blame me if you get hooked to the game.

Fons Tuinstra

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