Generational change in China – an increasingly important aspect of business
This topic is an essential part of intercultural training in China, because hardly any other country is changing as quickly as the “Middle Kingdom”.
China is a country of contrasts, especially when it comes to generational change. In the business context, there are clear differences between the younger and older generations, which bring both challenges and opportunities. These differences shape corporate culture, decision-making and the understanding of success. It is already clear how important this aspect is in intercultural training in China.
- Hierarchy vs. flat structures
The older generation in China is strongly influenced by Confucian values, which emphasize respect for authority and hierarchies. Traditionally, Chinese companies are therefore often highly hierarchical and decisions are usually made from the top down.
In contrast, the younger generation, which has grown up with international influence and digital technologies, prefers a more open, flatter hierarchy. They value personal responsibility, faster decision-making processes and cooperative leadership.
- Willingness to take risks and drive for innovation
Older business people tend to rely on tried-and-tested methods and long-term stability. They are often more reluctant to embrace disruptive innovations and prefer incremental improvements. This mentality stems from a time when economic security and stability were the top priority.
The younger generation, on the other hand, is more willing to take risks and innovate. With a strong focus on technology, start-ups and digitalization, they are looking for quick solutions and are prepared to take unconventional paths. Chinese tech giants such as Alibaba, Tencent and ByteDance are prime examples of companies founded by young entrepreneurs with a global perspective. Intercultural training in China addresses this important aspect in particular.
- Work culture and work-life balance
The older generation sees hard work and long hours as the key to success. The so-called “996” model (working from 9am to 9pm, six days a week) has long been considered normal, especially in traditional industries.
Younger employees are increasingly questioning this model and demanding a better work-life balance. The discussion about “Tang Ping” (“lying flat” – a protest against excessive work demands) shows that attitudes towards work have changed. They place more value on personal development, flexible working hours and a more balanced life.
- Digital transformation and globalization
The young generation has a strong digital focus and uses technology in almost all areas of business. They are very familiar with e-commerce, artificial intelligence and social media and see more opportunities than risks in globalization. Companies that are adapting strongly to international markets are often led by younger managers.
The older generation, on the other hand, often has a more traditional view of business and prefers established markets. Their digital skills are usually lower, which can be a challenge in today’s fast-moving economy.
Intercultural training in China provides the right strategies for dealing efficiently with these changes.
Conclusion: conflict or synergy?
The differences between the generations can lead to both conflicts and synergies. Companies that manage to combine the best of both worlds – the experience and stability of the older generation with the innovative strength and dynamism of the younger generation – will be more successful in the long term. The key lies in mutual understanding, an open corporate culture and a willingness to learn from one another.
