Doing Business in China

Chinese business practice in china series of Negotiation strategies

There are many strategies about Chinese business practice in China,Negotiation strategies.

Chinese negotiating style - While Westerners are generally results-oriented (focusing on tasks at hand, specific terms and conditions, and time efficiency) Chinese are relationship-oriented. They focus on harmony and flexibility, and are patient in getting the job done.
They do all they can to avoid 'tong chuan yi meng' which translates to 'same bed, different dreams'. Chinese are known to be tough negotiators.

Building trust - Begin to build trust based on mutual respect, modesty, equality and harmony. Chinese are not comfortable being rushed, or jumping right into business discussions without proper introduction. They believe getting to know each other and building trust is necessary in negotiations.

Rationale - Chinese take time to understand the reason, logic and motivating factors in a holistic manner - connecting the dots. They must be convinced there's a win-win deal to be made. They think long term. A bottom line approach or a quick fix may be perceived as simplistic and short-term thinking.

Cultural priorities - In negotiations, Chinese cultural priorities are relationship first followed by rationale, and legal. Check your cultural assumptions in relation to these priorities - they may be in reverse order.

Style - Chinese listen more than they talk. They may appear to be delaying, but they are gathering pertinent details on issues and personalities. The indirect, unemotional style accompanied by vagueness allows room for maneuverability and outs. Silence is ‘constructive ambiguity'. It is rude to interrupt. To build a productive relationship each side must accept different styles of team building and group dynamics.
Compromise - Chinese know what they want and are willing to compromise. ‘Give and take' is a means to achieve harmony in Chinese culture. As such, compromise is not considered weak or giving in.
Revisiting agreed items or terms - It is not unusual for Chinese to revisit items previously discussed and agreed upon, and try to renegotiate. If this happens, graciously enter into talks, be flexible and well prepared for what you are willing and unwilling to do, and prepare your organization that there may have to be changes.

Chinese business practice in china series of Negotiation strategies

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