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China Business » Information » How to Negotiate More Effectively in China How to Negotiate More Effectively in ChinaIf you are in a hurry to get some business done in China and with Chinese counterparts, you may as well surrender now. It is not that the Chinese do not want to do business with foreigners. They definitely do want to become involved with outsiders. However, it needs to be done on their terms, and their terms always revolve around "guan xi".Guan xi is inextricably related to forming friendships. Chinese culture is absolutely people-oriented in nature. Notice how many companies in China are family-owned businesses. Nobody is closer to a Chinese man than his own family and extended family, people whom he knows very well. He has known them for years and has learned to trust the ones with whom he wants to be involved in business.  Even if you do not have Chinese blood, you can still get into the guan xi circle, but it will take time and a host of relationship-building activities. To get more cooperation from a Chinese businessman, he needs to trust you and have respect for you. He wants assurance that you and he have common goals and will work equally toward reaching those goals. Your primary means of reaching the place of negotiating well with the Chinese is to prove your integrity. The Chinese prospective business associates will be studying you in a number of areas. Any major weakness that they observe may be a major hindrance to your business goals involving them. The act of promoting yourself as an ultra-successful businessman may work against you. Let the Chinese notice for themselves that you have above average abilities. You should, of course, send bio data ahead with your credentials and qualifications. They will be aware of your accomplishments through that means, but do not show an arrogant spirit to these people who have a greater appreciation for humility and modesty. When presenting ideas to the Chinese delegation, do not push too much. Present your point of view and allow them time to consider what you said. Do not expect feedback on your presentation as you probably will get none. If they do not like something that you said, they will not tell you in a negative way. If they feel good about your presentation, they may privately give you some low key feedback. After a meeting with the Chinese, you may feel some discomfort in your ego as they will not seem excited about your plan in public. Any confrontation on your part will surely be seen as a major weakness in your character and will work against you. In this face-saving culture, confrontation is avoided. Confrontation, even in business negotiations, is taken personally by the Chinese. It is quite acceptable to go over your major points repeatedly in order to help your prospective business associates understand them. Accept the fact that they will hash and rehash some points to find the logic in them. Compromise is a part of the Chinese business style. Do not be surprised if they offer some compromise. The Chinese look at business while considering priorities. Their first priority may not be the same as those of a western businessman. They see the importance of relationships as their first priority. Secondly, they consider the reasoning in the proposed deal. Thirdly comes the legal implications. If your priorities are in conflict with theirs, accept some problems. There are times in negotiations with a delegation in China that you must stand your ground on some issue or another. Be gentlemanly in taking a stand, but do not give in to something on which you feel strongly. The Chinese are aware of laws against corrupt business practices, not only in China but internationally. If they suggest something contrary to acceptable business practices, you need to stand strongly. Even if they threaten to not accept your business plan without a less-than-legal appeal, hold your ground. This may be another ploy to test your character. To negotiate in China, allow yourself time and use all of the patience that you can find within yourself. By trying to cooperate in the Chinese guan xi element, you may find that you have not only gained a business relationship but some new close friends in China. Written on: 25th September 2007 Written by: R. Harris |
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