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Negotiation with chinese – cultural influence and best practises
Negotiation with chinese – cultural influence and best practises
Negotiation with chinese – cultural influence and best practises
Negotiation with chinese – cultural influence and best practises
Negotiation with chinese – cultural influence and best practises
Negotiation with chinese – cultural influence and best practises
Negotiation with chinese – cultural influence and best practises
Negotiation with chinese – cultural influence and best practises
Negotiation with chinese – cultural influence and best practises
Negotiation with chinese – cultural influence and best practises
Negotiation with chinese – cultural influence and best practises
Negotiation with chinese – cultural influence and best practises
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Negotiation with chinese – cultural influence and best practises

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Another factor that influences Chinese negotiating style is Chinese war stratagems.

Another factor that influences Chinese negotiating style is Chinese war stratagems.

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  • 1. NEGOTIATION WITH CHINESE– CULTURAL INFLUENCE ANDBEST PRACTISESFor additional information about Business with Chinaplease visit www.China-Business-Connect.com
  • 2. www.China-Business-Connect.comChinese has been an important business destination for westerncompanies over the many years.China opened her markets to the world in 1978 for trade and since thenit has been a favourite for many western business establishments.But doing business with Chinese firms is not an easy task as negotiatingwith them is quite difficult.2
  • 3. www.China-Business-Connect.comCHINESE CULTURAL ROOTS AND NEGOTIATION• importance of interpersonal relationships,• family orientation,• respect for seniority and hierarchy,• pursuit of harmony,• avoidance of conflict• concept of face3
  • 4. www.China-Business-Connect.comCHINESE CULTURAL ROOTS AND NEGOTIATIONAnother factor that influences Chinese negotiating style is Chinese warstratagems.Ancient Chinese war tactics and stratagems have influenced modernChinese business thinking a lot. The 36 Chinese stratagems can bemapped directly to their negotiation tactics and they apply their wartactics to business field as well.The business strategies like attacking the opponent’s vulnerabilities,playing home court, manipulating friendship, hospitality, etc. againstthe foreign traders are influenced by the use of stratagems for handlinghostile opponents.4
  • 5. www.China-Business-Connect.comCHINESE CULTURAL ROOTS AND NEGOTIATIONChinese culture and history has a deep impact on their business styleand negotiation skills.Their cultural heritage, socio-economic and political changes, history ofinvasion and civil war had a deep and long lasting influence on businessculture. Chinese culture is highly influence with Confucianism, a 2500year old philosophy that is root of Chinese culture and ethics.The various virtues of Confucianism which are base of Chinesenegotiation style includes:5
  • 6. www.China-Business-Connect.comNEGOTIATION WITH CHINESE – IMPORTANTASPECTSIndividual vs. public interest – Unlike western people Chinese are moreoriented towards building a relationship rather than just getting thework done.Western firms often follow individualistic approach and are concernedabout their personal gain whereas Chinese often consider the impact ofthe negotiation on a higher level.They look into how the deal will affect all the parties involved, thepublic interest and effect on the government. Hence it is essential tolook beyond individual benefits while negotiating with Chinese.6
  • 7. www.China-Business-Connect.comNEGOTIATION WITH CHINESE – IMPORTANTASPECTSLong term relationship – While negotiating Chinese look for building along term relationship and a business partner and not just a one-timedeal.Hence it very important to build a trust and mutual respect with them.Along with that they also evaluate the business firms on theirdedication and capability to have a long lasting business relationship.7
  • 8. www.China-Business-Connect.comNEGOTIATION WITH CHINESE – IMPORTANTASPECTSConcept of face – Face or social standing in terms of prestige, honourand reputation is very critical in Chinese society.Chinese likes to be treated as their ‘face’, anything impacting theirsocial status (losing the face) can lead the negotiations go void.8
  • 9. www.China-Business-Connect.comNEGOTIATION WITH CHINESE – IMPORTANTASPECTSNegotiation style – Chinese believe in gathering as much informationabout their prospective business partners as they can.They tend to indulge in discussions and discuss minor details and longterm strategies.9
  • 10. www.China-Business-Connect.comNEGOTIATION WITH CHINESE – IMPORTANTASPECTSRe-Negotiation – Chinese like to re-negotiate to get more concessionsonce the contract is finalized.The like to go over the contract and the points finalizes once again andre-negotiate the terms.This may be frustrating for a westerner but they should be flexibleenough while negotiating with Chinese and be ready for this.10
  • 11. www.China-Business-Connect.comSUMMARY ON NEGOTIATION WITH CHINESEChinese are highly influenced with their culture and past, and thatshows in the business negotiations as well.Since their culture differs a lot from western culture, their style of doingbusiness also is quite different and that leads to tough negotiationswhile partnering them.It is very important to understand their phycology and their culturebefore starting any negotiations with them.Also they demand a lot of mutual respect and trust and that is the coreof doing business with them11
  • 12. For additional information about Business with Chinaplease visit www.China-Business-Connect.com

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