Doing Business in China For Dummies®

Practicing the Chinese Art of Negotiating

Negotiating with the Chinese is a combination of hard-nosed bargaining, relationship building, and banqueting. When negotiating with the Chinese, being polite, understanding, and respectful of the cultural differences is extremely important; however, you also need to be a skilled negotiator to keep up with your potential new partners.

Although your Chinese hosts are incredibly hospitable, you can expect your counterparts to be very smart and demanding at the negotiating table. This section explains how the Chinese think and act when dealing with foreigners.

After many attempts to get to an agreement, you may find that you can’t conclude a satisfactory deal. Don’t be afraid to walk away from a bad deal. If you’ve been negotiating for about a year, you’re probably at the end of your rope. Make sure you let the Chinese know from the beginning that you’re responsible for looking out for the best interests of your company — even if that means not reaching a negotiated agreement with them.

Thinking like the Chinese

Thinking like the Chinese is a good way to get an understanding of their negotiating strategies. This section explains some Chinese perspectives.

Developing a relationship is most important

Many Westerners negotiating in China emphasize getting a contract signed; however, the Chinese believe that developing a relationship is the ...