Doing Business in China: Learn How To Effectively Negotiate With The Chinese

What You Need to Know When Negotiating in China
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enter So regardless of your type of business, be prepared to showcase your experience, your breadth of knowledge, your credentials and other supporting information.

Your Chinese client will certainly consider this in their evaluation, and may even pay more to partner with the firm that offers them the most value. Seniority and rank is big deal in Asia, and especially so in China. Case in point, when negotiating with a company several years ago, my team was asked to leave the room for half an hour while they captured a list of questions. When we returned, it was the lowest ranking person on the Chinese side who asked every question their team had identified.

Understanding Chinese Business Culture and Etiquette - Decode China

Outwardly criticizing them will quickly end your chances of coming to an agreement. When negotiation in China, remember that the business environment is very much about relationships — or guanxi.

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The bigger the deal, the longer the romance can take to develop. Pick and choose your battles carefully and be prepared to show patience and tolerance in your interactions. Expect conversations to swing wildly between topics, and ensure you have a team with you that knows how to deal with the subtleties of working in China.

Know Your Position When negotiating in China — or anywhere for that matter — know your position before you go in. Bring a Team Experienced in China Nothing will make your business deal and negotiations in China go south faster than having your team strut in the room like a bunch of Texas cowboys. Ury and Bruce Patton Getting to Yes: Negotiating Agreement Without Giving In is an international best seller that provides practical approaches and strategies to negotiation.

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First Name. Last Name. The host sits beside the guest of honor to the left. Other guests are seated in descending order of status. It is considered rude to begin eating or drinking before the host. A typical Chinese meal consists of a great number of separate dishes, which are placed centrally on the table. Depending on the location in China, the dishes comprise a combination of meat, fish, and vegetables.

Cultural Analysis of Chinese Negotiating Behavior | Negotiate to Win in China

The process of eating can best be described as a social event. By using your chopsticks you nibble at one dish after the other. It is perfectly all right to reach in front of each other, although the revolving glass plate on which the dishes are located usually will bring your chosen dish well in reach. You may experience that the host as a courtesy places food for you to taste on your plate.

If you get fish bones or the like in your mouth, just leave it in the designated saucers or plates provided for the purpose. In China, rice is normally considered a filling not to be served until the end of a meal, if served at all. However, if you feel more comfortable having the rice together with the exotic dishes, many western people do, do not hesitate to ask for a bowl of plain rice at any time.

Tea is the most common drink in China, although a complementary of alcoholic drinks in form of wine and beer is also common. Sometimes your Chinese host may even try to test your ability to handle alcohol by serving various local strong liquors. The reason for this is that the Chinese believe that alcohol brings out your true face.

3 Ways to Kill a Deal in China

During the meal it is very common that the host makes a toast by giving a little speech appreciating your mutual friendship and business relationship. You may experience that the host ends the speech by saying "ganbai" which means bottoms up. You are expected to return the toast by giving a little speech later. When smoking, it is polite to offer cigarettes to the rest of the table. The serving of fruit and the presentation of hot towels signals that it is time to leave the dining table. It is well-seen to reciprocate the hospitality of your Chinese host by hosting a business lunch or dinner yourself.

Despite your obvious interest in making a good impression, do not surpass your Chinese counterpart by arranging a more lavish gathering. This may cause your Chinese counterpart to lose face. Chinese people love Chinese food. Take them to a good Chinese restaurant rather than a fancy Italian restaurant, unless you are very sure that your Chinese counterpart has a true taste for western food. Generally, tipping is considered an insult in China rather than an expression of appreciation. Do not tip unless you are in an international restaurant or a big hotel.

During a meal, expressing enthusiasm about the food is normal social behavior. Public behavior and addressing Initial greetings are done by handshake. Do not attempt any intimate contact such as hugs or kisses on the cheeks, unless your Chinese counterpart initiates such gestures.

On formal occasions, most Chinese people should be addressed with their official title and name. Alternatively, "Mr. You may find many Chinese names difficult to pronounce and remember. If a Chinese has adopted an English first name, which is very popular among young people, you can also use this name.

If you are invited to workplaces, conferences, or other places with many Chinese people gathered, it is likely you will be welcomed with applause.

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Show your gratitude by applauding back. Although it has become illegal, spitting in public is still common everywhere in China. Educated people, however, usually find the behavior primitive. In crowded places, pushing and jumping queues is very normal. If you wish to go give a present or pay for a meal, you will need to insist on it at least three times before Chinese people will give their acceptance. Choose your country's store to see books available for purchase. See if you have enough points for this item. Sign in. China is one of the largest countries in the world, and with one of the largest populations.

With the fall of the communist party new business opportunities are appearing everyday in China. It seems almost everything these days is made in China.

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China has become one of the largest export countries in the world. And it is growing at an exponential rate! However the Chinese do not negotiate or conduct business like Westerners, and unless you understand their negotiation style you'll be left with the short end of the stick.

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