Engaging the dragon: the need for cultural intelligence

Australia's proximate geographical location to South East Asia gives it a unique advantage over other Western countries. For example, China was Australia's largest two-way trading partner in 2007 for imports and exports of both goods and services. More recently, the Australia-New Zealand free trade agreement was signed with ASEAN. While China has dominated the media and India is a close second, it is now considered that ASEAN is Australia's largest trading partner. Without a doubt, the rise of the South East Asian and Chinese economies is transforming the way in which the West and East engage in trade and commerce. Yet, there are remarkable differences in attitudes, behaviours, gestures, and philosophy which are often misunderstood. There is also much trepidation in doing business in certain Asian economies including a lack of confidence in the legal system to resolve disputes. Rightly or wrongly, such perceptions do not help if Australia is to take the relationship with our Asian neighbours to another level. In order to develop and maintain effective ties in South East Asia, having 'cultural intelligence' is essential in sustaining a longer term relationship with the 'Asian dragon'. The challenge, however, of mutual understanding is vast but unless it is embraced, we will lose ground.