SlideShare a Scribd company logo
HOW TO DO BUSINESS
NEGOTIATIONS WITH CHINESE
COMPANIES
For additional information about Business with China
please visit www.China-Business-Connect.com
www.China-Business-Connect.com
Negotiating with Chinese Companies is crucial especially in this era
where more buyers are sourcing for various merchandise directly from
Chinese manufacturers.
In business, negotiation is never that easy, but it can prove to be very
hard especially when you have to deal with a foreign culture. As much
as so many things are negotiable in China you are guaranteed better
results if you know how to deal with the manufacturers.
The more information you have concerning the culture backgrounds,
positions, pressures, etc about your business associate in China the
better you can use that information as a negotiating tool to get what
you want.
2
www.China-Business-Connect.com
ONE OF THE THINGS THAT YOU NEED TO
DO THAT WILL HELP IN NEGOTIATING
WITH CHINESE COMPANIES IS RESEARCH.
3
www.China-Business-Connect.com
The Chinese manufacturers are very clever.
They clearly know everything that you as the buyer need to know about
their products and if you are not adequately prepared, they can use this
against you.
Just before you embark into real life negotiations try to use the most
trusted buyer-to-buyer websites in the e-market for market reviews on
a particular product you wish to order.
This will help you to have clear-cut details on the products you wish to
buy and therefore eliminate the chances of miscommunication with
your Chinese counterpart.
4
www.China-Business-Connect.com
When Negotiating With Chinese Suppliers it is good advice that you
stick to the contract agreement.
Bear in your mind that Chinese manufacturers love to build up solid and
lasting business relationships even after the trading contract has long
been signed. The reason is that Chinese business contracts are just a
platform for future negotiations.
Most importantly to the Chinese business community, business
negotiations is just a part of relationship culture process in China that is
commonly referred to as “guanxi” that is translated as “if you scratch
my back, I might scratch yours”. Try to give your partners fair prices on
products as opposed to get lower prices on goods.
5
www.China-Business-Connect.com
Technical behavior is another thing to consider when negotiating With
Chinese suppliers.
Many multinational companies in China tend to have a high rating of
credibility and reputation than their small and medium sized
counterparts. They also use resources to invest in R&D something,
which makes these suppliers more acceptable in the negotiation desk.
Most of the Chinese companies have really opened up to the new
opportunities offered by the ICT industry, something that helps them to
look for more innovative ideas even from among the small industries.
Negotiations methods of the southern China are different from
northern China.
6
www.China-Business-Connect.com
The other most important thing you have to know when Negotiating
with Chinese Companies is the social behavior.
Fact is, it harder to lie to a friend than a stranger. Social status plays an
important role in business negotiations in China. The higher up you are
as far as social status is concerned the higher chances you have to get a
favorable deal in the negotiations desk.
Because of many Chinese businesses adoption of the western
negotiation patterns of business, the need for personal relationships is
slowly diminishing. As a foreign business negotiator, you have to have
exceptional interpersonal skills and understand the value of trust.
7
For additional information about Business with China
please visit www.China-Business-Connect.com

More Related Content

More from Martin Brunet

Stealth innovation is not a solution
Stealth innovation is not a solutionStealth innovation is not a solution
Stealth innovation is not a solution
Martin Brunet
 
Inspiring blockbuster ideas and innovation
Inspiring blockbuster ideas and innovationInspiring blockbuster ideas and innovation
Inspiring blockbuster ideas and innovation
Martin Brunet
 
The art of business – negotiating with chinese businesses
The art of business – negotiating with chinese businessesThe art of business – negotiating with chinese businesses
The art of business – negotiating with chinese businesses
Martin Brunet
 
Business negotiations the chinese way
Business negotiations the chinese wayBusiness negotiations the chinese way
Business negotiations the chinese way
Martin Brunet
 
6 great competitive intelligence data sources
6 great competitive intelligence data sources6 great competitive intelligence data sources
6 great competitive intelligence data sources
Martin Brunet
 
Competitive intelligence get smart with the internet
Competitive intelligence get smart with the internetCompetitive intelligence get smart with the internet
Competitive intelligence get smart with the internet
Martin Brunet
 
Business intelligence versus competitive intelligence
Business intelligence versus competitive intelligenceBusiness intelligence versus competitive intelligence
Business intelligence versus competitive intelligence
Martin Brunet
 
Is your company innovative enough
Is your company innovative enoughIs your company innovative enough
Is your company innovative enough
Martin Brunet
 
Guidelines to gift giving in china
Guidelines to gift giving in chinaGuidelines to gift giving in china
Guidelines to gift giving in china
Martin Brunet
 
4 weird things should know about doing business in china
4 weird things should know about doing business in china4 weird things should know about doing business in china
4 weird things should know about doing business in china
Martin Brunet
 
The axioms of competitive intelligence
The axioms of competitive intelligenceThe axioms of competitive intelligence
The axioms of competitive intelligence
Martin Brunet
 
Top 12 priorities for competitive intelligence
Top 12 priorities for competitive intelligenceTop 12 priorities for competitive intelligence
Top 12 priorities for competitive intelligence
Martin Brunet
 
Competitive intelligence social media tools
Competitive intelligence social media toolsCompetitive intelligence social media tools
Competitive intelligence social media tools
Martin Brunet
 
Competitive intelligence how to spot a liar
Competitive intelligence how to spot a liarCompetitive intelligence how to spot a liar
Competitive intelligence how to spot a liar
Martin Brunet
 
Using linked in for competitive intelligence
Using linked in for competitive intelligenceUsing linked in for competitive intelligence
Using linked in for competitive intelligence
Martin Brunet
 
Competitive intelligence how to work a trade show
Competitive intelligence how to work a trade showCompetitive intelligence how to work a trade show
Competitive intelligence how to work a trade show
Martin Brunet
 
Corporate espionage versus competitive intelligence
Corporate espionage versus competitive intelligenceCorporate espionage versus competitive intelligence
Corporate espionage versus competitive intelligence
Martin Brunet
 
Negotiating in china 10 rules for success
Negotiating in china 10 rules for successNegotiating in china 10 rules for success
Negotiating in china 10 rules for success
Martin Brunet
 
Institutional innovation an overview
Institutional innovation an overviewInstitutional innovation an overview
Institutional innovation an overview
Martin Brunet
 
The innovation index
The innovation indexThe innovation index
The innovation index
Martin Brunet
 

More from Martin Brunet (20)

Stealth innovation is not a solution
Stealth innovation is not a solutionStealth innovation is not a solution
Stealth innovation is not a solution
 
Inspiring blockbuster ideas and innovation
Inspiring blockbuster ideas and innovationInspiring blockbuster ideas and innovation
Inspiring blockbuster ideas and innovation
 
The art of business – negotiating with chinese businesses
The art of business – negotiating with chinese businessesThe art of business – negotiating with chinese businesses
The art of business – negotiating with chinese businesses
 
Business negotiations the chinese way
Business negotiations the chinese wayBusiness negotiations the chinese way
Business negotiations the chinese way
 
6 great competitive intelligence data sources
6 great competitive intelligence data sources6 great competitive intelligence data sources
6 great competitive intelligence data sources
 
Competitive intelligence get smart with the internet
Competitive intelligence get smart with the internetCompetitive intelligence get smart with the internet
Competitive intelligence get smart with the internet
 
Business intelligence versus competitive intelligence
Business intelligence versus competitive intelligenceBusiness intelligence versus competitive intelligence
Business intelligence versus competitive intelligence
 
Is your company innovative enough
Is your company innovative enoughIs your company innovative enough
Is your company innovative enough
 
Guidelines to gift giving in china
Guidelines to gift giving in chinaGuidelines to gift giving in china
Guidelines to gift giving in china
 
4 weird things should know about doing business in china
4 weird things should know about doing business in china4 weird things should know about doing business in china
4 weird things should know about doing business in china
 
The axioms of competitive intelligence
The axioms of competitive intelligenceThe axioms of competitive intelligence
The axioms of competitive intelligence
 
Top 12 priorities for competitive intelligence
Top 12 priorities for competitive intelligenceTop 12 priorities for competitive intelligence
Top 12 priorities for competitive intelligence
 
Competitive intelligence social media tools
Competitive intelligence social media toolsCompetitive intelligence social media tools
Competitive intelligence social media tools
 
Competitive intelligence how to spot a liar
Competitive intelligence how to spot a liarCompetitive intelligence how to spot a liar
Competitive intelligence how to spot a liar
 
Using linked in for competitive intelligence
Using linked in for competitive intelligenceUsing linked in for competitive intelligence
Using linked in for competitive intelligence
 
Competitive intelligence how to work a trade show
Competitive intelligence how to work a trade showCompetitive intelligence how to work a trade show
Competitive intelligence how to work a trade show
 
Corporate espionage versus competitive intelligence
Corporate espionage versus competitive intelligenceCorporate espionage versus competitive intelligence
Corporate espionage versus competitive intelligence
 
Negotiating in china 10 rules for success
Negotiating in china 10 rules for successNegotiating in china 10 rules for success
Negotiating in china 10 rules for success
 
Institutional innovation an overview
Institutional innovation an overviewInstitutional innovation an overview
Institutional innovation an overview
 
The innovation index
The innovation indexThe innovation index
The innovation index
 

Recently uploaded

Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s Dholera
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraTata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s Dholera
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s Dholera
Avirahi City Dholera
 
Top mailing list providers in the USA.pptx
Top mailing list providers in the USA.pptxTop mailing list providers in the USA.pptx
Top mailing list providers in the USA.pptx
JeremyPeirce1
 
ikea_woodgreen_petscharity_dog-alogue_digital.pdf
ikea_woodgreen_petscharity_dog-alogue_digital.pdfikea_woodgreen_petscharity_dog-alogue_digital.pdf
ikea_woodgreen_petscharity_dog-alogue_digital.pdf
agatadrynko
 
In the Adani-Hindenburg case, what is SEBI investigating.pptx
In the Adani-Hindenburg case, what is SEBI investigating.pptxIn the Adani-Hindenburg case, what is SEBI investigating.pptx
In the Adani-Hindenburg case, what is SEBI investigating.pptx
Adani case
 
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
AnnySerafinaLove
 
How to Implement a Real Estate CRM Software
How to Implement a Real Estate CRM SoftwareHow to Implement a Real Estate CRM Software
How to Implement a Real Estate CRM Software
SalesTown
 
LA HUG - Video Testimonials with Chynna Morgan - June 2024
LA HUG - Video Testimonials with Chynna Morgan - June 2024LA HUG - Video Testimonials with Chynna Morgan - June 2024
LA HUG - Video Testimonials with Chynna Morgan - June 2024
Lital Barkan
 
Recruiting in the Digital Age: A Social Media Masterclass
Recruiting in the Digital Age: A Social Media MasterclassRecruiting in the Digital Age: A Social Media Masterclass
Recruiting in the Digital Age: A Social Media Masterclass
LuanWise
 
-- June 2024 is National Volunteer Month --
-- June 2024 is National Volunteer Month ---- June 2024 is National Volunteer Month --
-- June 2024 is National Volunteer Month --
NZSG
 
Training my puppy and implementation in this story
Training my puppy and implementation in this storyTraining my puppy and implementation in this story
Training my puppy and implementation in this story
WilliamRodrigues148
 
Structural Design Process: Step-by-Step Guide for Buildings
Structural Design Process: Step-by-Step Guide for BuildingsStructural Design Process: Step-by-Step Guide for Buildings
Structural Design Process: Step-by-Step Guide for Buildings
Chandresh Chudasama
 
Creative Web Design Company in Singapore
Creative Web Design Company in SingaporeCreative Web Design Company in Singapore
Creative Web Design Company in Singapore
techboxsqauremedia
 
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfThe 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
thesiliconleaders
 
ikea_woodgreen_petscharity_cat-alogue_digital.pdf
ikea_woodgreen_petscharity_cat-alogue_digital.pdfikea_woodgreen_petscharity_cat-alogue_digital.pdf
ikea_woodgreen_petscharity_cat-alogue_digital.pdf
agatadrynko
 
一比一原版加拿大渥太华大学毕业证(uottawa毕业证书)如何办理
一比一原版加拿大渥太华大学毕业证(uottawa毕业证书)如何办理一比一原版加拿大渥太华大学毕业证(uottawa毕业证书)如何办理
一比一原版加拿大渥太华大学毕业证(uottawa毕业证书)如何办理
taqyed
 
Company Valuation webinar series - Tuesday, 4 June 2024
Company Valuation webinar series - Tuesday, 4 June 2024Company Valuation webinar series - Tuesday, 4 June 2024
Company Valuation webinar series - Tuesday, 4 June 2024
FelixPerez547899
 
Examining the Effect of Customer Services Quality and Online Reviews in Unive...
Examining the Effect of Customer Services Quality and Online Reviews in Unive...Examining the Effect of Customer Services Quality and Online Reviews in Unive...
Examining the Effect of Customer Services Quality and Online Reviews in Unive...
Adam Smith
 
3 Simple Steps To Buy Verified Payoneer Account In 2024
3 Simple Steps To Buy Verified Payoneer Account In 20243 Simple Steps To Buy Verified Payoneer Account In 2024
3 Simple Steps To Buy Verified Payoneer Account In 2024
SEOSMMEARTH
 
buy old yahoo accounts buy yahoo accounts
buy old yahoo accounts buy yahoo accountsbuy old yahoo accounts buy yahoo accounts
buy old yahoo accounts buy yahoo accounts
Susan Laney
 
Authentically Social by Corey Perlman - EO Puerto Rico
Authentically Social by Corey Perlman - EO Puerto RicoAuthentically Social by Corey Perlman - EO Puerto Rico
Authentically Social by Corey Perlman - EO Puerto Rico
Corey Perlman, Social Media Speaker and Consultant
 

Recently uploaded (20)

Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s Dholera
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraTata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s Dholera
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s Dholera
 
Top mailing list providers in the USA.pptx
Top mailing list providers in the USA.pptxTop mailing list providers in the USA.pptx
Top mailing list providers in the USA.pptx
 
ikea_woodgreen_petscharity_dog-alogue_digital.pdf
ikea_woodgreen_petscharity_dog-alogue_digital.pdfikea_woodgreen_petscharity_dog-alogue_digital.pdf
ikea_woodgreen_petscharity_dog-alogue_digital.pdf
 
In the Adani-Hindenburg case, what is SEBI investigating.pptx
In the Adani-Hindenburg case, what is SEBI investigating.pptxIn the Adani-Hindenburg case, what is SEBI investigating.pptx
In the Adani-Hindenburg case, what is SEBI investigating.pptx
 
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
 
How to Implement a Real Estate CRM Software
How to Implement a Real Estate CRM SoftwareHow to Implement a Real Estate CRM Software
How to Implement a Real Estate CRM Software
 
LA HUG - Video Testimonials with Chynna Morgan - June 2024
LA HUG - Video Testimonials with Chynna Morgan - June 2024LA HUG - Video Testimonials with Chynna Morgan - June 2024
LA HUG - Video Testimonials with Chynna Morgan - June 2024
 
Recruiting in the Digital Age: A Social Media Masterclass
Recruiting in the Digital Age: A Social Media MasterclassRecruiting in the Digital Age: A Social Media Masterclass
Recruiting in the Digital Age: A Social Media Masterclass
 
-- June 2024 is National Volunteer Month --
-- June 2024 is National Volunteer Month ---- June 2024 is National Volunteer Month --
-- June 2024 is National Volunteer Month --
 
Training my puppy and implementation in this story
Training my puppy and implementation in this storyTraining my puppy and implementation in this story
Training my puppy and implementation in this story
 
Structural Design Process: Step-by-Step Guide for Buildings
Structural Design Process: Step-by-Step Guide for BuildingsStructural Design Process: Step-by-Step Guide for Buildings
Structural Design Process: Step-by-Step Guide for Buildings
 
Creative Web Design Company in Singapore
Creative Web Design Company in SingaporeCreative Web Design Company in Singapore
Creative Web Design Company in Singapore
 
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfThe 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
 
ikea_woodgreen_petscharity_cat-alogue_digital.pdf
ikea_woodgreen_petscharity_cat-alogue_digital.pdfikea_woodgreen_petscharity_cat-alogue_digital.pdf
ikea_woodgreen_petscharity_cat-alogue_digital.pdf
 
一比一原版加拿大渥太华大学毕业证(uottawa毕业证书)如何办理
一比一原版加拿大渥太华大学毕业证(uottawa毕业证书)如何办理一比一原版加拿大渥太华大学毕业证(uottawa毕业证书)如何办理
一比一原版加拿大渥太华大学毕业证(uottawa毕业证书)如何办理
 
Company Valuation webinar series - Tuesday, 4 June 2024
Company Valuation webinar series - Tuesday, 4 June 2024Company Valuation webinar series - Tuesday, 4 June 2024
Company Valuation webinar series - Tuesday, 4 June 2024
 
Examining the Effect of Customer Services Quality and Online Reviews in Unive...
Examining the Effect of Customer Services Quality and Online Reviews in Unive...Examining the Effect of Customer Services Quality and Online Reviews in Unive...
Examining the Effect of Customer Services Quality and Online Reviews in Unive...
 
3 Simple Steps To Buy Verified Payoneer Account In 2024
3 Simple Steps To Buy Verified Payoneer Account In 20243 Simple Steps To Buy Verified Payoneer Account In 2024
3 Simple Steps To Buy Verified Payoneer Account In 2024
 
buy old yahoo accounts buy yahoo accounts
buy old yahoo accounts buy yahoo accountsbuy old yahoo accounts buy yahoo accounts
buy old yahoo accounts buy yahoo accounts
 
Authentically Social by Corey Perlman - EO Puerto Rico
Authentically Social by Corey Perlman - EO Puerto RicoAuthentically Social by Corey Perlman - EO Puerto Rico
Authentically Social by Corey Perlman - EO Puerto Rico
 

How to do business negotiations with chinese companies

  • 1. HOW TO DO BUSINESS NEGOTIATIONS WITH CHINESE COMPANIES For additional information about Business with China please visit www.China-Business-Connect.com
  • 2. www.China-Business-Connect.com Negotiating with Chinese Companies is crucial especially in this era where more buyers are sourcing for various merchandise directly from Chinese manufacturers. In business, negotiation is never that easy, but it can prove to be very hard especially when you have to deal with a foreign culture. As much as so many things are negotiable in China you are guaranteed better results if you know how to deal with the manufacturers. The more information you have concerning the culture backgrounds, positions, pressures, etc about your business associate in China the better you can use that information as a negotiating tool to get what you want. 2
  • 3. www.China-Business-Connect.com ONE OF THE THINGS THAT YOU NEED TO DO THAT WILL HELP IN NEGOTIATING WITH CHINESE COMPANIES IS RESEARCH. 3
  • 4. www.China-Business-Connect.com The Chinese manufacturers are very clever. They clearly know everything that you as the buyer need to know about their products and if you are not adequately prepared, they can use this against you. Just before you embark into real life negotiations try to use the most trusted buyer-to-buyer websites in the e-market for market reviews on a particular product you wish to order. This will help you to have clear-cut details on the products you wish to buy and therefore eliminate the chances of miscommunication with your Chinese counterpart. 4
  • 5. www.China-Business-Connect.com When Negotiating With Chinese Suppliers it is good advice that you stick to the contract agreement. Bear in your mind that Chinese manufacturers love to build up solid and lasting business relationships even after the trading contract has long been signed. The reason is that Chinese business contracts are just a platform for future negotiations. Most importantly to the Chinese business community, business negotiations is just a part of relationship culture process in China that is commonly referred to as “guanxi” that is translated as “if you scratch my back, I might scratch yours”. Try to give your partners fair prices on products as opposed to get lower prices on goods. 5
  • 6. www.China-Business-Connect.com Technical behavior is another thing to consider when negotiating With Chinese suppliers. Many multinational companies in China tend to have a high rating of credibility and reputation than their small and medium sized counterparts. They also use resources to invest in R&D something, which makes these suppliers more acceptable in the negotiation desk. Most of the Chinese companies have really opened up to the new opportunities offered by the ICT industry, something that helps them to look for more innovative ideas even from among the small industries. Negotiations methods of the southern China are different from northern China. 6
  • 7. www.China-Business-Connect.com The other most important thing you have to know when Negotiating with Chinese Companies is the social behavior. Fact is, it harder to lie to a friend than a stranger. Social status plays an important role in business negotiations in China. The higher up you are as far as social status is concerned the higher chances you have to get a favorable deal in the negotiations desk. Because of many Chinese businesses adoption of the western negotiation patterns of business, the need for personal relationships is slowly diminishing. As a foreign business negotiator, you have to have exceptional interpersonal skills and understand the value of trust. 7
  • 8. For additional information about Business with China please visit www.China-Business-Connect.com