Doing Business in China For Dummies®

Negotiating after the Deal

After numerous rounds of negotiations, countless hours of explaining your position to the Chinese, and too many toasts at evening banquets, you believe you’re closer to getting the deal done. But just when you think the negotiations are over and you have a signed contract in hand, the Chinese start renegotiating with you. Negotiating with the Chinese seems to be endless. This is one of the cruelest lessons for foreigners who are new to dealing with the Chinese.

The Chinese believe that when circumstances change in business, they can count on you to work together to fix the problem. They believe that the relationship that they’ve built with your company, not what the contract says, is what counts. And now that things have changed, the Chinese fully expect to discuss the terms and conditions of the contract again. Although your first reaction may be “This can’t be happening,” it happens every day in China. So take a deep breath and sit down to discuss the situation with your Chinese partner.

Unfortunately, reopening negotiations isn’t a two-way street. When a change negatively impacts the Chinese, they expect you to help fix the problem; when you’re in a similar situation, don’t expect a warm reception from the Chinese. They look at it as your problem, not theirs.