Part 2 - The 7 Words You Can\'t Say in a Chinese Negotiation (without thinking..) Its much easier to avoid a conflict in China than it is to resolve one - but that\'s easier said than done. Good communication skills are essential. Some words and phrases have a different meaning in China than then do in the West -- and we don\'t mean Mandarin vs. English.

1. Conflict Management in China
Presented by
ChineseNegotiation.com
& ChinaSolved.com

2. Conflict Management in China PART II:
The 7 Words You Can’t Say in a
Chinese Negotiation
(without thinking carefully)

3. A glossary of conflict laden phrases
in Western-Chinese deal making.
Resolving conflict in China-Western business
relationships is very difficult, but avoiding and
controlling conflict is much more practical.
Beware of these phrases that SEEM harmless
and crystal-clear, but may actually carry a
different meaning in China than they do for you.

4. Fighting Words:
1. Contract
2. Risk
3. Long Term
4. Truth
5. Harmony / justice.
6. Relationship
7. Transaction
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5. 1. Contract
• Westerners see a contract as an independent
entity – external from the two counterparties.
• Chinese view a contract as a record of a
meeting of the minds between two specific
individuals at a certain time and place, under
specific circumstances.

6. 2. Risk
• Risk, as used by Westerners, encompasses two
concepts.
– A) possibility of loss and
– B) uncertainty.
• To Westerners, these are two sides of the
same coin.
• To Chinese, these are completely different
things with wildly different ramifications.

7. Risk (con’t)
• Possibility of loss doesn’t frighten Chinese deal-
makers, but uncertainty does. Confronted with an
unclear or uncertain future, the wise Chinese
deal-maker shuts down and waits for further
information.
• When the Western side attempts to push him into
action, the Chinese side smells trouble, deception
and trickery. Conflict and mistrust ensue.

8. 3. Long Term
• Chinese and Westerners involved in a
negotiation frequently accuse the other side
of being short sighted, one-off and win-lose,
while THEY are long-term, cooperative and
win-win.
• The irony is each side accuses the other of
engaging in the same distrustful, deal-
destroying behavior.

9. 4. Is it truth – or is it Truth?
• Truth, Justice – and the American Way.
– Westerners view Truth as an external, universal
constant. It is bigger than we mere mortals – or at
least bigger than we Westerners.
• Asians think that this is nuts.
– Everything changes. Price levels, supply chain
factors, weather conditions – the world is always
in flux. Yin and Yang, ups and downs.

10. Truth (con’t)
• Westerners:
– A man’s word is his bond – or it isn’t .
– A righteous Westerner feels that the words you
said yesterday bind you today.
• Chinese:
– A man’s nature is reliable and consistent – or it
isn’t.
– A righteous Chinese feels that your intentions
yesterday bind you today.

11. 5. Harmony & Justice.
• China isn’t all fluidity and flux. One thing
really is bigger than all of us – but it isn’t
Truth. It’s Harmony.
– Westerners prefer rock-hard Justice – like the kind
that judges and courts can dispense.
– Chinese prefer soft, eternal Harmony – like that
kind that rises from the will of the People.
• Both are great – but they don’t live in the
same house.

12. 6. Relationship.
• Westerners tend to view relationships as
organic, personal and based on familiarity and
shared values.
– They are desirable, but not required .
– They develop naturally over time.
• Chinese view relationships as carefully
planned and delicately choreographed.
– They are intrinsic to the deal process.
– They are systematic and intentional

13. 7. Transaction
• For Westerners, relationships flow from
successful transactions.
– Test orders and contractual safeguards are standard
operating procedure.
– ‘Good fences make good neighbors’
• For Chinese, transactions flow from successful
relationships.
– Test orders and contracts undermine trusts.
– ‘Honest men don’t need contracts – dishonest men
aren’t bound by them.’

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15. For more information:
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