Negotiating In China: 10 Rules for Success - China Business Connect

As part of any good negotiating knowing the rules is a great place to start, but with China you need extra support. With the economic growth that China has seen more and more companies are negotiating with Chinese businesses it is a good idea to know the top rules for success.

1. Manage the Expectations

Maintaining a public appearance that everything is harmonious and going smooth is a key trait of Chinese business culture. Rarely will they disagree with you or your company in public and look to keep up appearances independent of how the negotiations are actually playing out. When you are treated with a great deal of respect and lavish compliments you may be tempted to believe that the negotiating will be easy or that you have an agreement before it is signed. In China, it is important to understand the difference between the business pleasantries and the negotiating. Understanding the true intention behind the words will get you much further than expecting a cake walk in the board room.

2. Develop a negotiating strategy

Working with a Chinese company through a negotiation period can be a long arduous battle that gets drawn out for much longer than expected. There is no such thing as phone negotiations and business still runs with face to face meetings. As memories can fade or change over time it is important to keep detailed and accurate meeting notes as you work through your strategy. The more that you can detail your notes the better you can leverage them later, especially if you can get the other side to sign off on the notes as well.

3. Chinese Businesses use a team of Negotiators

As with most meetings and business interactions there is a key decision maker even if there are five or more people at the negotiating table. Figuring out which person is the real decision maker can give you a better idea of how to focus your negotiations.

4. Build a negotiating team that incorporates Chinese business people and the Government

Having these people on your side at the negotiation table can give you the edge that you need to effectively compete with the Chinese negotiators across the table. Leveraging any business relationships that you already have in China, such as other businesses or governmental agencies can help support your negotiations.

5. Keep in mind the relativity of money

Most Chinese business people have a lower cost perspective to money than people that have grown up in America or Europe. When you go to China and see a 100 yuan bill you may instinctually covert that to about $15 USD or 12?, whereas a Chinese person sees a $100 bill in the same note. This may cause a negotiating stumbling block, as they have a fundamentally different cost perspective.

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Source: http://china-business-connect.com/negotiating-in-china-10-rules-for-success-part-one.htm

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