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THE IMPORTANCE OFRELATIONSHIP BUILDINGNEGOTIATING IN CHINAFor additional information about Business with Chinaplease visit...
www.China-Business-Connect.comAs a general rule, when you are dealing with Chinese business people itis best to hire someo...
www.China-Business-Connect.comCultivating guanxi with your potential business partners in China can behelped along by hiri...
www.China-Business-Connect.comThe normal business practices aside, the Chinese will trust you moreonce you have cultivated...
www.China-Business-Connect.comJust as the trust of a handshake has been replaced with a mountain ofpaperwork in the wester...
www.China-Business-Connect.comKEEP IN MIND THAT ANY FAVORS THATYOU RECEIVE, EVEN IF YOU DIDN’T ASKFOR THEM, HAVE TO BE REC...
For additional information about Business with Chinaplease visit www.China-Business-Connect.com
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The importance of relationship building negotiating in china

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As a general rule, when you are dealing with Chinese business people it is best to hire someone with some sort of ties to them so that you can gain some leverage into their social network.

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The importance of relationship building negotiating in china

  1. 1. THE IMPORTANCE OFRELATIONSHIP BUILDINGNEGOTIATING IN CHINAFor additional information about Business with Chinaplease visit www.China-Business-Connect.com
  2. 2. www.China-Business-Connect.comAs a general rule, when you are dealing with Chinese business people itis best to hire someone with some sort of ties to them so that you cangain some leverage into their social network.A large part of the Chinese society is centered around guanxi, which isthe concept of building personal relationship with people that you cangive and receive special favors from.As an outsider you are immediately at a disadvantage unless you canincrease the level of trust which is ultimately at the heart of this issue.2
  3. 3. www.China-Business-Connect.comCultivating guanxi with your potential business partners in China can behelped along by hiring people that are already close to them as part ofyour team, or by developing relationships with some of their keycontacts.This is not uncommon to the way that business is conductedthroughout the world but in China the intensity of this practice isgreater.The sense of guanxi is a powerful tool that you can leverage byspending time cultivating the key relationships with all of the businesspeople that you need to know.3
  4. 4. www.China-Business-Connect.comThe normal business practices aside, the Chinese will trust you moreonce you have cultivated the relationship with them rather than justsigning a binding contract.This method continues due to the fact that China’s legal system inunderdeveloped and under-enforced.Once you have gained the trust through guanxi your businessinteractions will become a lot easier as they will go above and beyondto help you and your business.Don’t forget that they will also expect something in return for anyfavors that they provide for you.4
  5. 5. www.China-Business-Connect.comJust as the trust of a handshake has been replaced with a mountain ofpaperwork in the western business world, China’s legal system isimproving.But the speed at which they are improving will leave plenty of time forthe concept of guanxi to infiltrate another generation or two. Until thelegal reform makes this kind of inner circle business relationships moreflexible and open, you have to play by the rules that are dictated.Trust is the lynch pin that can expedite and alleviate all of your businesstransactions throughout the world, but in China you need to manageyour network and ensure that you have multiple guanxi links to yourbusiness partners to maintain a close bond.5
  6. 6. www.China-Business-Connect.comKEEP IN MIND THAT ANY FAVORS THATYOU RECEIVE, EVEN IF YOU DIDN’T ASKFOR THEM, HAVE TO BE RECIPROCATEDTO MAINTAIN THE RELATIONSHIPS.6
  7. 7. For additional information about Business with Chinaplease visit www.China-Business-Connect.com

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