1. Take all the time in the world
Foreign business travelers are often deadline-driven and willing to talk about slowing the pace of China's business. But in China the pace can be fast and slow at the same time. They are involved in negotiations know how long it can drag when China is consulting internally or has other reasons for the delay. But Chinese negotiators can move at high speeds in other contexts. Part of the feeling is subjective. Any chess player knows how long she should wait for another player, but how fast they move on their own. However, Chinese negotiators use time more consciously the West.
2. Understanding separate fact from fiction
Almost all of you have heard about China is true, and so is the opposite. Western thought is centered on the linear logic of thinking, while the influence of early Chinese philosophers, who saw a paradoxical balance of opposites in all conditions. When Westerners tend to look for the correct options (one choice instead of option B), China to explore ways to combine both option and option B. This difference in approach can make vision of the stranger, the Chinese negotiator is unlikely, evasive or devious, if they feel it is very simple.
3. Building relationships
Foreigners generally build transactions and, if successful, one outcome of the partnership. But the Chinese believe that the potential business partners to build a relationship first and, if successful, commercial arrangements. This difference underlies many misunderstandings in the context of trade negotiations. Almost every business successfully in China is due to the careful cultivation of the Chinese partner, such as foreign, until a relationship of trust develops.
4th Cultivating "guanxi"
The logical development of intimate relationships is the Chinese concept of guanxi, pronounced gwan Shee. According to business analyst Tim Ambler of London Business School, the kernel of guanxi is doing business with value judgments relationships. In a highly centralized, bureaucratic state, the use of personal contact was the only way of doing things. Guanxi is the equivalent of a commercial legal system. When this is relatively small, as in China, the need for guanxi will be strong. As the association is more important that the transaction makes sense in their honor. The idea of a relationship that leads to business is. But Easterners who are familiar with guanxi are more cautious than the converts abroad. The responsibility of guanxi are very real. In the wrong place at the wrong time with the wrong people, the bonds can become a trap that is difficult to escape.
5th Exhibition careful with contracts
Chinese and Westerners often approach a transaction from different sides. To a Westerner, from a model contract, which changes to suit different circumstances, and the signing of the revised version sounds great. Commercial law is embedded in our thinking. However, traditionally, commercial law almost nonexistent in China and certainly indicated bad faith. The early appearance of a draft legal contract was seen as inadequate or, more likely, irrelevant, and showed no signs of compromise. States of affairs might be a useful program, but the obligations came from associations, not pieces of paper. Now back home with a piece of paper signed is a symbol of progress, but that's all. The Chinese can sign a contract with the mood of your guests. For them, a contract may be terminated simply a proof that both parties have become close enough to develop a trusting relationship.
New concessions can be ordered - a difficult prospect for the Westerner who has reduced his margin only.
6. To mobilize local resources
The challenge of learning to speak fluent Chinese, the complexity of the Chinese way of doing business, and a strong sense of patriotism means that the alien will only rarely be accepted by Chinese interlocutors on an equal footing. The solution is to find a local reliable ally to work with you. An effective Chinese colleague will be able to analyze the body language at meetings, work on the negotiating team that has the real power other - not always the boss - and helps to overcome the problems inadvertently. Conversely, the presence of a stranger is to be used up. Chinese interlocutors will often see a visit from a stranger as an indication of the sincerity and commitment to foreign operations. Paradoxically, they often do not comply with mainland China or Hong Kong representatives the same status as a foreigner. The perfect team of sales is usually a place to take care of contacts on a practical level, and a stranger to honor the upper layers.
7. Look at the face
The face is an important part of the Chinese national psyche. Possession means having the face of a high status in the eyes of his comrades, and is a measure of personal dignity. The Chinese are very sensitive to gaining and maintaining face in all parts of society and business. Face is a prized commodity that can be given, lost, abducted or earned. Causes someone to lose face could ruin business prospects or even invite accusations. The fastest way to find someone to lose face is to the bottom of an individual or criticize them in front of others. Foreigners may accidentally offend Chinese by making fun of them with fun. Another error may be to treat someone as a subordinate when their status in an organization is high. Just as face can be lost, it can also be given by any supplement to major work to their colleagues. Lets respect and loyalty against winning, but the praise should be used only rarely. Excessive use suggests sincerity of the donor.
8. the hierarchy
Mao Zedong's thoughts on discipline published in 1966 gives a valuable insight into the structures that exist in Chinese organizations, even now: "The individual is subordinate to the organization, the minority is subordinate to the majority of the lower level is subject to the next level ... "This quote, which underpin the way China was governed for more than two decades, why the Chinese communities and organizations are very hierarchical organization, and why the Chinese seem to be more focused on the group of individualistic and often do not support. Similarly, people are rarely willing to give an opinion before their peers, because it can cause loss of face with a trusted ally .
9. Knowing the ropes
East negotiators are smart and use a variety of negotiating tactics. The following are just a couple of the most common strategies:
- Control of the meeting room and schedule
The Chinese know that foreigners who have traveled the distance in China will go home with nothing. Press to foreigners before their scheduled return can often bring useful benefits to China.
- Threatening to take their business elsewhere
Foreign negotiators may be pressured to make allowances when the Chinese side threatens to approach competitors, if their demands are not met.
- Use of friendship for profit
As soon as both parties are satisfied, the local side may remind the foreigners that true friends would come up mutual benefit. Make sure that the pay off is in fact a loan, not just a one-way.
- Display of your anger
Despite the Confucian aversion to displays of anger, the Chinese put on a show of anger deliberately to put pressure on the foreign party who may have fear of losing the contract.
- Attrition
The Chinese negotiators are patient and can be pulled out of talks on the country of their interlocutors down. Excessive hospitality of days before the talks could be another variation on this theme.
10. Play the game itself
The Chinese Foreign negotiators dealing might find some of the following tactics successfully:
- A duly completed
At best, an individual of a foreign team should have a thorough knowledge of every aspect of the provision of business. Be prepared to enter into a long presentation and all-inclusive, taking into account that allows sensitive technological information before reaching a full consensus.
- Play off competitors
When the going gets tough, you can leave the local side know they are not the only manufacturer {i is in the region. Competition between Chinese producers is increasing. There may be other sources in the country for what your counterpart has to offer.
- Do not rush
Orientals generally think that Westerners are always in a rush, and they can try to make you sign a contract until you have enough time to go over the details.
- Be prepared to deal with their losses and go home
Enter the eastern side of knowing that there was no agreement has the potential to do a bad thing.
- Covers all aspects of an agreement before you commit to
Complete agreement with China Talk. Make sure that your interpretations are consistent and that everyone understands their duties and obligations.
11. Find an expert
Often a strong enthusiasm for the deal to replace the normal China due diligence, we would expect before you commit. Too often, Australian companies are trying to negotiate with local distributors, wholesalers, manufacturers and joint ventures, and what we believe are the best trading conditions, only to discover things are not what they seemed. Communication is the key to avoiding this, and if you are not the quality of representation in China, we find this difficult.