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Win Big with Business Negotiations in China
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Negotiation is a big part of doing business in China and
also any where of the world. You'll find it beneficial to
learn the traditions and customs of the Chinese before you
go into these negotiations in your next business trip to
China.
First thing, bring your own interpreter, if possible, to
help you understand the subtleties of everything being said
(or not said) during meetings. Remember to speak in short,
simple, and sentences that are free of jargon and slang.
Speak slowly, so that people will be able to understand
everything you say. It's surprising that sometimes even
their interpretors find it difficult to translate your
words if you speak at normal speed. Chinese also have an
easier time understanding Birtish English as it is seen in
their education system as more conventional.
Except for those who were western educated or had travelled
extensively, Chinese businesspeople largely rely on
subjective feelings and personal experiences in forming
opinions and making decisions. Empirical evidence and other
objective facts will be accepted only if they do not
contradict one's gut feelings. In the Chinese business
culture, the collectivist way of thinking prevails, during
negotiation, you will find your partners often steer away
from talk to you and start discussing amongst themselves.
"Saving face" is an art that you need to master in order
to form business relationships with Chinese. A person's
"face" refers to his/her reputation and social standing.
Causing embarrassment or loss of "face", even
unintentionally, is disastrous for business negotiations.
Chinese are very keen about exchanging business cards,
so be sure to bring plenty of them. Preferably, print one
side in English and the other in Chinese and include your
title on your business card, especially if you have the
seniority to make decisions. In the Chinese business
culture, the objective of exchanging business cards is to
determine who is the decision-maker on your side. If your
company is the oldest or largest in your country, or has
another prestigious distinction, make sure that it is
stated on your card. Present your card with two hands.
Ensure that the Chinese side is facing the recipient.
When receiving a business card, pretend to examine it
carefully for a few moments; then, carefully place it into
your card case or on the table. Not reading a business
card that has been presented to you, or stuffing it
directly into your back pocket, is considered impolite and
an insult to the person giving you the business card.
In accordance with Chinese business protocol, people are
expected to enter the meeting room in hierarchical order.
For example, the Chinese will assume that the first
foreigner to enter the room is the head of the delegation.
Since there is such a strong emphasis on hierarchy in
Chinese business culture, ensure that you bring a senior
member of your organization to lead the negotiations on
your behalf. The Chinese will do the same. Only the senior
members of your group are expected to lead the discussion.
Interruptions of any kind from subordinates are considered
incourteous by the Chinese. In Chinese culture, modesty is
a virtue. Exaggerated claims are regarded with suspicion
and, in most instances, dispised upon. Furthermore,
Chinese communication emphasizes on subtlety and avoidance
of confrontation. Instead of saying "no" to you. Answers
such as "perhaps", "I'm not sure", "I'll think about it",
or "We'll see" usually suggest a "no."
Chinese tend to extend negotiations well beyond the
official deadline in order to gain advantage. They may try
to renegotiate everything, even on the final day of your
visit. Be patient, show little emotion, and calmly accept
the delays will occur. Moreover, do not mention deadlines.
At the end of a meeting, you are expected to leave before
your Chinese counterparts. You may have to make several
trips to China to achieve your objectives. Chinese
businesspeople prefer to establish a strong relationship
before closing a deal. Even after the contract is signed,
the Chinese will often continue to press for a better deal.
Overall, the Chinese business culture is not the same as
ours. One must remember that heirarchy is crucial
and there is a strong emphasis on modesty. Reading
between the lines is a must because subtlesness is
common. Remember to take several business cards and
carefully examine the ones you receive as to not make your
partners "loss face". It takes time to develope a strong
bond with your Chinese partners; patience is vital to your
success in business negotiations in China.
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