Business Negotiations Skills & Strategies in China

The existing theories of business negotiation were originally formed in European and American countries. Most of the textbooks about business negotiation are mostly explanations and case descriptions of negotiation strategies, negotiation skills, negotiation pressure, etc., and their understanding and cases are mostly from the western world, with a westernized way of thinking. In China, we can't say that these theories are inappropriate and not suitable for the modern days, but the very unique social customs, business etiquettes and other characters in China further enriched the theories of business negotiation and connections. Some basic ideas are summarized as below.

I. Don't be Confined to the Business Itself

Business negotiations are mostly about the business activities between the customers and suppliers, such as the establishment of sales contracts, arrangements for mutual cooperation, business transactions and so on. Therefore, in the western concept, business is business, work is work, human is human, and life is life. These are no intersection, they will never talk about business negotiations family, talk about life. And this is the first characteristic of Chinese-style business negotiation: besides poetry, we should learn how to make poems, not just poetics, but also how to master profound knowledge and participate in social practice. Business negotiations, not only business negotiations, but also the integration of human and life. A foreign trade enterprise in Hangzhou had a business talk with a customer about cotton-polyester cloth. The two sides refused to let up on the price and held each other at loggerhead. This lasted for about two months. Later, the salesman of this foreign trade enterprise learned that the customer just had a baby. So, he prepared a gift for the customer. The customer was very happy and expressed his willingness to cooperate on the spot. From this case, we can know that the Chinese-style business negotiation is not simply about business contacts, but also about human experience and family life. When we Chinese talk about business, we do not immediately start the negotiation, but exchange pleasantries, asking where the other party is from, where he lives, what experience he has, and so on. Often find common ground on worldly wisdom now, shorten the distance between both sides. In particular, the relationship of fellow villagers, relatives, alumni and comrades-in-arms is the most influential factor to the psychological distance between the two sides. We often hear some people say: the other side of the President Wang and I are very familiar, we are Guangxi people and so on, in fact, this is the western theory of negotiation in the negotiation advantage.

II. Many Deals Are Made Over Wines

China's wine culture boasts a long history, which has also profound influenced the commercial activities in China and also left a deep imprint on the business behaviors of each of us. For example, when we are in a stalemate with the other side of the negotiation, we tend to say: well, let's put the problem aside and go to dinner first, it's already twelve o 'clock. In fact, this scene is exactly in line with the second characteristic of Chinese-style negotiation: Many deals are actually made over the wines. I believe many people have encountered these scenes. The wine field is a relatively unique place for business reception in China. Therefore, the knowledge of the wine field has also become the knowledge of business. Who should do what position, who should first move the chopsticks, who should toast, etc., is a knowledge. Not only the wine field, but also the coffee shop, teahouse, mahjong field and KTV are all places for business negotiation. There was an industrial goods sales company negotiating with a customer. At first, I went to the coffee shop near the company, had lunch in a restaurant at noon, and then had tea at the teahouse until 6 o 'clock in the evening. At last, I went to the KTV to sing. It was almost 12 o 'clock at night before the business was finished. So, the Chinese will say that the work is tired, in fact, not only the reason for the work, but also the reason for the entertainment, you do not want to go to no, you have to go.

III. Let Me Ask My Boss

Sometimes it's a negotiation strategy by saying "let me ask my boss", sometimes it's indeed the actual case. For example, in a business negotiation with Chinese customers, you can obviously feel the prolonged process. Because, a lot of times they want to report to the leader, want to ask for instructions to the leader, got the leader's oracular perhaps only then further negotiation. As for western business negotiations, they will absolutely explain why Chinese people would be so troublesome, do business to ask for instructions. Because for foreigners, they are in charge of the business, and they have the full power to decide their choice. But in China, the leader will not give you clear instructions before the negotiation, while in the negotiation, the negotiator has to say: I will ask the leader. In fact, the reason lies in the fact that the negotiation bottom line of the leader is constantly changing, and the leader needs to make a decision according to the situation on the spot and the reaction of the other side, which requires the negotiators' continuous feedback, resulting in that the Chinese business negotiation needs multiple negotiations to reach a consensus.

Last by not least, make sure you choose the correct language variety: Mandarin or Cantonese. If your suppliers or clients are based in Mainland Chinese, Mandarin is the variety you need to go with. But you're visiting Hong Kong, Cantonese is definitely recommendable.