HOW TO HANDLE CHINESENEGOTIATING TACTICSFor additional information about Business with Chinaplease visit www.China-Busines...
www.China-Business-Connect.comThe increase of China in the past few decades as an economicsuperpower has brought with it a...
www.China-Business-Connect.comThe first thing that you have to consider is the role of the Chinesegovernment and its inter...
www.China-Business-Connect.comThe doubt is mirrored by many of the Chinese companies that are tryingto strike deals in the...
www.China-Business-Connect.comWEARING YOU DOWN WITH ENDLESS ISSUESThis is by far the most common negotiation tactic that C...
www.China-Business-Connect.comARTIFICIAL DEADLINESWhile this may be an obvious manipulation to most people, the Chinesecon...
www.China-Business-Connect.comONCE INVESTED KEEP GUARD UPThe final major technique is to come back to the negotiation afte...
www.China-Business-Connect.comNegotiations with Chinese businesses are difficult and time consuming,but if you are well pr...
For additional information about Business with Chinaplease visit www.China-Business-Connect.com
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How to handle chinese negotiating tactics

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The increase of China in the past few decades as an economic superpower has brought with it a myriad of complications for foreign negotiators. The Chinese have a style of business that can be very different from the Americas, Europe or the rest of Asia, and the increasing need for business partnership leads to increasing negotiations.

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How to handle chinese negotiating tactics

  1. 1. HOW TO HANDLE CHINESENEGOTIATING TACTICSFor additional information about Business with Chinaplease visit www.China-Business-Connect.com
  2. 2. www.China-Business-Connect.comThe increase of China in the past few decades as an economicsuperpower has brought with it a myriad of complications for foreignnegotiators.The Chinese have a style of business that can be very different from theAmericas, Europe or the rest of Asia, and the increasing need forbusiness partnership leads to increasing negotiations. What used tomainly be negotiations for manufacturing has now become aboutlicensing, technology, or service partnerships and increasing integrationwith Chinese business.By being aware of the negotiating tactics that they use you can have abetter understanding and prepare for the meetings in a moreproductive way.2
  3. 3. www.China-Business-Connect.comThe first thing that you have to consider is the role of the Chinesegovernment and its internal conflict in regards to foreign businesspartnerships and licensing of technologies.While the Chinese government welcomes the Western expertise theyare apprehensive because of the potential for disruption of theircontrol.3
  4. 4. www.China-Business-Connect.comThe doubt is mirrored by many of the Chinese companies that are tryingto strike deals in the service sector.As is already known, the industrial companies bargain hard, but theservice sector of China seems to be working the negotiation processeven harder.There are a few tactics that they employ during these negotiations andhere they are so that you can be aware and take the necessaryprecautions.4
  5. 5. www.China-Business-Connect.comWEARING YOU DOWN WITH ENDLESS ISSUESThis is by far the most common negotiation tactic that Chinesecompanies use and there are two variants.The first is a process, by which the Chinese side raises a series of issues,and upon resolution they raise another series of issues that areunrelated; this process never stops.The second variant is for the Chinese company to make a series ofunreasonable demands, while at the same time refusing to address anyof the concerns you may have. These variants are both done with theintent to wear you down so that you simply concede.5
  6. 6. www.China-Business-Connect.comARTIFICIAL DEADLINESWhile this may be an obvious manipulation to most people, the Chinesecontinue to use it because it works.At the beginning of the negotiation process the Chinese side sets a fixeddate for execution of the contract; with seemingly enough time for agood faith agreement to be met.This works by the Chinese side ensuring that no agreement has beenreached by the date and hoping that you will concede out ofembarrassment. Even if it seems as everything is ready to go, a day ortwo before the signing they may come up with a “demand bygovernment regulator” to revise the contract.6
  7. 7. www.China-Business-Connect.comONCE INVESTED KEEP GUARD UPThe final major technique is to come back to the negotiation after thefact. This involves signing the contract and then waiting until the projectis underway.Then the Chinese approach the lower level management or employeesthat are actually working on the project and claim that certain keyprovisions must be changed.This can be claimed by saying that the change is mandated by law,government regulators or banks and insurance companies. Often thisgets passed up the ladder at corporate and the changes get signed offas minor alterations.7
  8. 8. www.China-Business-Connect.comNegotiations with Chinese businesses are difficult and time consuming,but if you are well prepared it can be made a lot easier.Keeping your eyes open to the negotiating tactics above will give you asense of what you are up against and will make you aware of what theyare trying to accomplish by doing them.8
  9. 9. For additional information about Business with Chinaplease visit www.China-Business-Connect.com
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