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CrossCross--Cultural NegotiationCultural Negotiation

C H I N AC H I N A

Group C4

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A little aboutA little about China is called Zhongguo

( or) in Chinese Zhng() means middle

or central

Gu( or) means state Commonly translated as Central Kingdom

Traditional values derived from Confucianism

Focus on secular ethics and morality

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Chinese Negotiation StyleChinese Negotiation Style

No absolute style

Embrace mixture of different roles

Strategy is a combination of cooperation and

competition High trust leads to smooth and creative

negotiation with win-win solutions

Distrust fosters manipulative negotiation with

volatile haggling

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Four Threads of Chinese CultureFour Threads of Chinese Culture

1. Agrarianism

Communal, loyal, not individualistic

2. Morality

Relationship ofying to yang

More concerned with means than ends

3. Pictographic Language

Better at seeing the big picture than details4. Wariness of Foreigners

Long violent history

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How to Negotiate?How to Negotiate?

Build your guanxi

Personal relationships are the key to business success inChina

People oriented approach

Engage in pre negotiation social talks Dinner, drinks and yes karaoke

Don't be afraid to let your prospective partners pay the

tab Maintain a consistent team

Patience, tolerance, persistence and honesty

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How to Negotiate?How to Negotiate?

Jiejian Pad your price

Chinese start by squeezing out water content Do not make concessions too readily

Mianzi Stay calm Help the Chinese negotiator gain face

Give precedents of similar agreements with

Chinese

Help them get around bureaucratic obstacles

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How to Negotiate?How to Negotiate?

Use a zhongjian ren

Introduction from a trusted person Use local Chinese employees

Forget NDA! Create trust

NDAs start the relationship off with an air of

distrust

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How to Negotiate?How to Negotiate?

Shehui Dengji

Send the right team, social status is important Charisma and decision making of team leader

Technical and financial experts Chinese are

technology and price sensitive Display political support

Chinese believe in government control

Identify and talk to real negotiators Top leaders of Chinese government

Senior executives of companies

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How to Negotiate?How to Negotiate?

Zhengti Guannian

Anything other than Yes means No

Can lead to perceived consensus

Nothing is settled unless everything is

Invite abroad for Negotiations Chinese reciprocate hosts kindness

Magic number 8

Respect socio-cultural traits Do not point fingers

Utilize unique regional features of the 1.3 billion

Chinese market

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Thank you!