The art of business – negotiating with chinese businesses

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Since China is such a powerhouse on the world economic scene, it is essential to understand the strategy of the Chinese negotiation. This will make negotiating with Chinese companies far easier.

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The art of business – negotiating with chinese businesses

  1. 1. THE ART OF BUSINESS –NEGOTIATING WITH CHINESEBUSINESSESFor additional information about Business with Chinaplease visit www.China-Business-Connect.com
  2. 2. www.China-Business-Connect.comBecause of the global nature of our economy, it has become importantfor businessmen all across the globe to learn how to deal with people ofvarying cultures.Every culture handles business transactions and negotiationsdifferently. Since China is such a powerhouse on the world economicscene, it is essential to understand the strategy of the Chinesenegotiation.This will make negotiating with Chinese companies far easier. Let’sdiscuss a few strategies for negotiating with Chinese manufacturers.2
  3. 3. www.China-Business-Connect.comLanguage is a common barrier in foreign trade. If you need to strike adeal with a Chinese manufacturer, then having a good translator can bethe key to putting together a deal that will make everyone happy.Don’t be afraid to review things at the end of the meeting.Do not take for granted that everyone understood clearly what wasdecided upon.3
  4. 4. www.China-Business-Connect.comThe Chinese prefer face-to-face meetings over video conferencing. Ifyou have a big deal that needs to go down, invest in a trip to China.The personal touch will help you to seal a good deal. And don’t expectthe meetings to be short.Even issues that were resolved in previous negotiations will likely be onthe table again.4
  5. 5. www.China-Business-Connect.comWHEN YOU ARE NEGOTIATING WITHCHINESE MANUFACTURERS, BE WARY OFTHE SILENCES IN CONVERSATION.5
  6. 6. www.China-Business-Connect.comIt likely means that your demands cannot be met. If you do ask forunrealistic amounts of product, then you are likely to get an inferiorproduct.This is a common strategy of the Chinese negotiation that helps tomaintain their already low profit margins. This makes it important toshoot for quality in your negotiating with Chinese manufacturers, ratherthan just trying to scope out the cheapest price.6
  7. 7. www.China-Business-Connect.comTo ensure that the project is feasible, ask them to make some samples.You may not get exactly what you want on the spot, but at least you willbe able to gauge whether or not the manufacturer can handle theproject.This goes back to the Chinese attitude of not wanting to say no thatresults in awkward silences rather than a rejection of an offer.7
  8. 8. www.China-Business-Connect.comLearn about the cost of the product to the manufacturer. Again,because of low profit margins, negotiating with Chinese companies is allabout knowing the numbers.If you know what their material costs are and what they are paying inlabor, then you can determine the rate you should be able to receive onproduction.8
  9. 9. www.China-Business-Connect.comThe Chinese are a highly efficient people, and it makes sense that manycompanies turn to them for manufacturing quality products at a lowcost.But negotiating with Chinese manufacturers requires a lot of homeworkin order to be successful. Follow the advice you are finding, and strike agood deal.9
  10. 10. For additional information about Business with Chinaplease visit www.China-Business-Connect.com

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