NEGOTIATING IN CHINA10 RULES FOR SUCCESSFor additional information about Business with Chinaplease visit www.China-Busines...
www.China-Business-Connect.comAs part of any good negotiating knowing the rules is a great place tostart, but with China y...
www.China-Business-Connect.com1. MANAGE THE EXPECTATIONSMaintaining a public appearance that everything is harmonious andg...
www.China-Business-Connect.com2. DEVELOP A NEGOTIATING STRATEGYWorking with a Chinese company through a negotiation period...
www.China-Business-Connect.com3. CHINESE BUSINESSES USE ATEAM OF NEGOTIATORSAs with most meetings and business interaction...
www.China-Business-Connect.com4. BUILD A NEGOTIATING TEAM THATINCORPORATES CHINESE BUSINESS PEOPLEAND THE GOVERNMENTHaving...
www.China-Business-Connect.com5. KEEP IN MIND THE RELATIVITY OF MONEYMost Chinese business people have a lower cost perspe...
www.China-Business-Connect.com6. RESPECT GOES A LONG WAY IN CHINAMaking sure that you keep the cultural norms in mind when...
www.China-Business-Connect.com7. USE YOUR LISTENING SKILLS ANDSLEEP ON ANY BIG DECISIONSAs previously mentioned the negoti...
www.China-Business-Connect.com8. KEEP COOL WHEN THEY STARTPRESSURING ABOUT ARTIFICIALDEADLINESAs the process takes a longe...
www.China-Business-Connect.com9. TRY TO KEEP THE NEGOTIATIONSREASONABLEAgain if you are getting frustrated or just want to...
www.China-Business-Connect.com10. THERE ARE PLENTY OF OTHERBUSINESSES TO NEGOTIATE WITHKeeping the option for doing busine...
For additional information about Business with Chinaplease visit www.China-Business-Connect.com
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Negotiating in china 10 rules for success

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This is part of the top rules for negotiating in China. Continuing on with the list and starting at number six here are the last top rules that you will need to keep in mind when doing business in China.

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Negotiating in china 10 rules for success

  1. 1. NEGOTIATING IN CHINA10 RULES FOR SUCCESSFor additional information about Business with Chinaplease visit www.China-Business-Connect.com
  2. 2. www.China-Business-Connect.comAs part of any good negotiating knowing the rules is a great place tostart, but with China you need extra support.With the economic growth that China has seen more and morecompanies are negotiating with Chinese businesses it is a good idea toknow the top rules for success.2
  3. 3. www.China-Business-Connect.com1. MANAGE THE EXPECTATIONSMaintaining a public appearance that everything is harmonious andgoing smooth is a key trait of Chinese business culture. Rarely will theydisagree with you or your company in public and look to keep upappearances independent of how the negotiations are actually playingout.When you are treated with a great deal of respect and lavishcompliments you may be tempted to believe that the negotiating willbe easy or that you have an agreement before it is signed.In China, it is important to understand the difference between thebusiness pleasantries and the negotiating.Understanding the true intention behind the words will get you muchfurther than expecting a cake walk in the board room.3
  4. 4. www.China-Business-Connect.com2. DEVELOP A NEGOTIATING STRATEGYWorking with a Chinese company through a negotiation period can be along arduous battle that gets drawn out for much longer than expected.There is no such thing as phone negotiations and business still runs withface to face meetings.As memories can fade or change over time it is important to keepdetailed and accurate meeting notes as you work through your strategy.The more that you can detail your notes the better you can leveragethem later, especially if you can get the other side to sign off on thenotes as well.4
  5. 5. www.China-Business-Connect.com3. CHINESE BUSINESSES USE ATEAM OF NEGOTIATORSAs with most meetings and business interactions there is a key decisionmaker even if there are five or more people at the negotiating table.Figuring out which person is the real decision maker can give you abetter idea of how to focus your negotiations.5
  6. 6. www.China-Business-Connect.com4. BUILD A NEGOTIATING TEAM THATINCORPORATES CHINESE BUSINESS PEOPLEAND THE GOVERNMENTHaving these people on your side at the negotiation table can give youthe edge that you need to effectively compete with the Chinesenegotiators across the table.Leveraging any business relationships that you already have in China,such as other businesses or governmental agencies can help supportyour negotiations.6
  7. 7. www.China-Business-Connect.com5. KEEP IN MIND THE RELATIVITY OF MONEYMost Chinese business people have a lower cost perspective to moneythan people that have grown up in America or Europe.When you go to China and see a 100 yuan bill you may instinctuallycovert that to about $15 USD or 12Ђ, whereas a Chinese person sees a$100 bill in the same note.This may cause a negotiating stumbling block, as they have afundamentally different cost perspective.7
  8. 8. www.China-Business-Connect.com6. RESPECT GOES A LONG WAY IN CHINAMaking sure that you keep the cultural norms in mind when you aredoing business with the Chinese will keep you from embarrassingyourself or ruining a deal before you even get into the negotiationroom.Respect is a big part of the way that business is done in China. By takingthe extra effort to show the utmost respect to your Chinesecounterparts you will be able to get to know them on a more personallevel.This will translate into a better deal for both parties and make thewhole process more personable. Leaving your ego at the door and justtrying to connect with your potential business partners will help to takethe negotiations to a more amicable place. Just remember to stayrespectful if you end up going out for a session of baijiu drinking.8
  9. 9. www.China-Business-Connect.com7. USE YOUR LISTENING SKILLS ANDSLEEP ON ANY BIG DECISIONSAs previously mentioned the negotiations in China tend to be drawn outin comparison to the speed of business in the Western world.Take full advantage of this slower pace by listening and digesting all ofthe information that the Chinese negotiation team is willing to present.Truly listening and then taking an extra night to sleep on any bigdecision will help you to make more informed decisions with a clearerhead.The opportunity to take this extra time is a gift that you shoulddefinitely take advantage of.9
  10. 10. www.China-Business-Connect.com8. KEEP COOL WHEN THEY STARTPRESSURING ABOUT ARTIFICIALDEADLINESAs the process takes a longer time you may be tempted to getfrustrated and start pushing the process forward. This practice rarelyends with positive results and may be playing into the Chinese’snegotiation team’s strategy. It is far more advantageous for you to takeyou time and try to cooperate while still sticking to your negotiationstrategies.10
  11. 11. www.China-Business-Connect.com9. TRY TO KEEP THE NEGOTIATIONSREASONABLEAgain if you are getting frustrated or just want to turn up the fire on thenegotiations this may bring them to a halt without much discussion onwhy.The Chinese negotiation team prefers to talk out and discuss withreason all of the decisions, but if you jump to an unreasonable stancewithout it, the whole process will start to break down.Take advantage of the extra time for communication and fullycooperate within your negotiation strategy.11
  12. 12. www.China-Business-Connect.com10. THERE ARE PLENTY OF OTHERBUSINESSES TO NEGOTIATE WITHKeeping the option for doing business with a competitor of thecompany that you are negotiating with will allow you to stay moreindifferent and less emotional during the negotiations.Using this in conjunction with your outcome strategy will allow you tonegotiate in a way that can leverage the situation instead of feelingpressured to agree to disadvantageous terms.12
  13. 13. For additional information about Business with Chinaplease visit www.China-Business-Connect.com

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