Negotiation Tactics And Strategy Chinese Negotiators

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China business specialist & speaker - consulting on doing business & expanding into China & more on www.camelliauniversal.com

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Negotiation Tactics And Strategy Chinese Negotiators

  1. 1. Negotiation Tactics & Strategy: Chinese Negotiators By Biao Wang (MBA) Camellia Universal Limited 9 April 2011 Moscow, Russia Camellia Universal Limited 2011
  2. 2. Introduction <ul><li>Persistency, determination. </li></ul><ul><li>Efficient preparation and planning. </li></ul><ul><li>Good product knowledge. </li></ul><ul><li>Intelligence and good judgment. </li></ul><ul><li>It is essential for the Russian negotiation team to grasp knowledge of the Chinese style of negotiation and culture. </li></ul>
  3. 3. What Do you Need To Do Before The Negotiation <ul><li>Carefully select the people who will be forming negotiating team. </li></ul><ul><li>Make all team members aware of cultural differences & have knowledge on the Chinese way of negotiating </li></ul><ul><li>Assign roles & responsibilities to each team member. </li></ul><ul><li>Send information about the members of the Russian negotiating team to the Chinese counterpart, and require same information back. </li></ul><ul><li>Make early contact with the government authority involved. </li></ul><ul><li>Appoint an intermediary with Chinese connections, experience and knowledge. </li></ul><ul><li>Allow a generous budget & long time for getting to know each other & gaining mutual trust. </li></ul>
  4. 4. During The Negotiation <ul><li>Enter the meeting fully prepared and with your key points firmly in mind. </li></ul><ul><li>Talk over the entire contract with the Chinese side. </li></ul><ul><li>Provide presentation in both Russian and Chinese. </li></ul><ul><li>Be aware of diverse tactics. </li></ul><ul><li>Avoid making concessions at the beginning. </li></ul><ul><li>If and when the meeting starts ‘hotting up’, try to remain patient and calm. </li></ul><ul><li>Be aware of sensitive high technology information. </li></ul>
  5. 5. After The Negotiation <ul><li>Be ready to answer the same questions and avoid aggression. </li></ul><ul><li>Keep legal and commercial technicalities to a minimum. </li></ul><ul><li>Be aware that they may re-negotiate. </li></ul>
  6. 6. The Dos & Dons When Negotiating in China <ul><li>Do accept variety of opinions </li></ul><ul><li>Do find an intermediary with some kind of link with the Chinese </li></ul><ul><li>Do make long term strategic goals </li></ul><ul><li>Do pay attention to etiquette behaviours </li></ul><ul><li>Do be firm on your offer and build credibility </li></ul><ul><li>Do reserve certain margins when bidding </li></ul>
  7. 7. The Dos & Dons When Negotiating in China <ul><li>Don’t be enemies on the table. </li></ul><ul><li>Don’t act individualistically . </li></ul><ul><li>Don’t get the deal done as soon as possible in order to be able to move on to the next stage . </li></ul><ul><li>Don’t think factors as individuals. </li></ul>
  8. 8. How To Hosting Chinese Negotiators In Russia <ul><li>Hold a formal welcome dinner for the Chinese delegation, provide some gift when leaving. </li></ul><ul><li>Concern about their feelings. </li></ul><ul><li>Do not talk about the business on the first day. </li></ul><ul><li>Provide professional translator. </li></ul><ul><li>Let the delegation inspect the factory. </li></ul><ul><li>Be prepared to negotiate with the delegation when they want to change some details on the agreement. </li></ul><ul><li>Make the working and leisure ratio right. </li></ul><ul><li>Arrange after work entertainment as well as sightseeing of Russia. </li></ul>
  9. 9. Know The Tricks Of The Trade <ul><li>Deciding where and when to meet. </li></ul><ul><li>Making you aware that other parties are interested. </li></ul><ul><li>Being friendly to encourage you to concede points. </li></ul><ul><li>Simulating anger or irritation. </li></ul><ul><li>Being abrasive </li></ul>
  10. 10. How to Play The Game Yourself <ul><li>Be completely prepared. </li></ul><ul><li>Play off competitors. </li></ul><ul><li>Be willing to cut your losses and go home. </li></ul><ul><li>Cover every detail of a contract before you sign it. </li></ul>
  11. 11. Conclusion & Recommendation <ul><li>A good negotiator in China must be able to win respect and confidence. </li></ul><ul><li>When negotiating with the Chinese negotiators, please remember if you know your enemies and know yourself, you can win a hundred battles without a single loss. </li></ul>
  12. 12. Questions & Answer Time

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