Just like Confucious and Lao Tsu (who was the inspiration for
Taoism) when negotiating for new suppliers or marketing to the
Chinese you must remember that they are more conscious of seeking
'the way' rather than the truth.
There is always an underlying need to find the Yin and the Yang
to create a better environment built on respect and morality.
It is likely that they will express their moral values in their
negotiating style. Being more concerned in finding a means to an
end, with the process, rather than defining the goal within any
negotiation discussions.
A Compromising Solution:
The best outcome is obtained through haggling, providing
opportunity for both sides to compromise, where everyone wins and
no one loses. This process cannot be cut short (haggling is a
pre-requisite) and a compromise allows both sides to hold equally
valid positions. Western business mentality tends to argue the
point strongly and get angry. The Chinese tend to haggle, in fact
they believe this is the only way forward.
The Big Picture:
Consider the Chinese Pictographic language. It is not essential
that you learn Mandarin, but because the Chinese are accustomed
to the many thousands of pictoral characters rather than letters
they tend to think more in terms of an holistic approach to the
processing of information. As a result Chinese are more capable
of seeing The Big Picture, while non-Chinese tend to focus on
details.
Xeno-cautious:
The Chinese wariness of foreigners has been learned the hard way.
Long and violant attacks over the centuries have had their toll
from abroad and even civil wars. This leads to cynicism and
contempt about the rule of law and rules in general.
It has been said that the Chinese trust only in their families
and their bank accounts.
Personal Connections (Guanxi)
To the Chinese it is about social respect. He who knows the
highest guy in the place usually wins.
The Intermediary (Zhongjian Ren)
Business deals in China don't have a chance without the Zhongjian
Ren. Suspicion will be the biggest issue you deal with on any
first meeting. Western Business people tend to trust until we
have reason not to. This is the complete opposite in China
Business. Trust must be transmitted via the Zhongjian Ren. He
must pass you along to his trusted business associates. Therefore
it is important tht you seek the person or institutions that has
personal links to your target or executive
It is crucial that Chinese interpretors need to be native
Chinese, as only they can read and explain the moods,
intonations, facial expressions and body language during formal
negotiation sessions. As no one wishes to lose face or cause
loss of face to any party, if you ask what they think of your
proposition, your opposite number is likely to come back with
kankan or yanjiu (Let us take a look - or Let us study it - even
if they think the proposal stinks.
Shedhui Dengji (Social Status)
Formality is a must. Informality will not go down well in a
country where Confucian values of obedience and deference to
one's superiors remain strong. This is especially heightened to
Westerners, so never let the formalities drop. You will insult a
Chinese Executive if you your rank does not equal or exceed his.
It raises doubts about the sincerity of the approach and may lead
to no further negotiation and any potential deal simply dying
before it could begin.
Renji Hexie (Interpersonal Harmony)
Where Western Business can take minutes to size the opposition
up, the Chinese may take days, weeks or even months getting to
know and trust you. Be patient, as in the end it will lead to a
long relationship together. It can include home visits,
invitations to sporting events or other events, and long dinners
during which everything but business is discussed. There is just
no other way to break through. A toast may include the following
"Let's drink to our friendship! We will have a long cooperation!
But if you are not drunk tonight, there will be no contract
tomorrow."
Zhengti Guannian (Holistic Thinking)
Chinese think in terms of the whole, while Western Business
processes tend to break up complex negotiation tasks into a
series of smaller issues: price, quantity, warranty, delivery and
so on. The Chinese tend to skip over them and may never settle on
any one thing. What they really want is long descriptions of
background and context and will ask a thousand questions.
Frustrating but necessary for success.
Jiejian (Thrift)
The Chinese save. They will also make their offers with more room
to manoeuver than you may be used to. Remember the focus is
ultimately on haggling and bargaining. Don't be surprised at
their base offering to any counter-proposal. It is a starting
point.
Mianzi ("Face" or Social Capital)
Reputation rests on saving face. If you cause embarassment or
loss of composure, even unintentionally, it can be a disaster, so
be careful to retain all sense of dignity and allow them to hold
their head high on any deal and not feel hard done by.
Chiku Nailao (Endurance, Bitterness and Enduring labour)
Chinese are famous for their work ethic, but they take diligence
one step further - to extreme. While we see talent as a key to
success, they see Chiku Nailao as much more important and
honourable. Be assured that the Chinese will have worked harder
in preparing for the negotiations than you will.
Second they will expect longer bargaining sessions: throw in jet-
lag and late-night business entertainment and it can be a very
exhausting experience. The trick is to act slightly dumb and ask
questions. A useful tip is to ask the same question again - I
didn't completely understand what you meant. "Can you explain
that again?" - can expose weaknesses in the other party's
argument. Ask why a specific item is important rather than accept
that it is.
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