How to Negotiate and other Chinese Business Practices | The ...

When launching a business in China or working with Chinese businessmen, understanding their negotiation skills can be decisive in getting the type of contract that best benefits your company. Unlike many Western negotiating techniques, negotiations with Chinese are of a different order and many Westerners fail to successfully grasp the concepts of these standards and wind up either not reaching agreements or have contracts that do not work to their best advantage.

Understanding negotiations with Chinese starts with the concept that their business practices and cultural mindset is different than what Western businesses operate under. What appear to be vague or unfocused in their negotiating positions are actually techniques that have been employed in China for thousands of years.

Here are just a few of the techniques used in negotiations with Chinese businessmen that can help you better understand the culture as well as their position and what you can get for your business to help you access this explosive market.

Avoiding Negotiations: One of the most common techniques in negotiations with Chinese is their tactic of not negotiating directly that is, they send a representative that does not actually have the authority to make decisions to the table. Often, Western business leaders become confused when deals they think they have reached are actually just talk as the real decision makers stay out of the room. In this case, it is best to simply state your position to the representative and call it a day until the business leader is ready to meet with you.

The Big Show: This is a similar tactic to avoidance, but in this case the negotiations with Chinese takes on a different tact as the representatives talk up a big deal, but nothing really is accomplished. In this case, you?ll want to stand by your principles until you meet with their decision makers.

?Yes? Men: This rarely used tactic of negotiations with Chinese involves the business leader pretty much agreeing with everything you say, but does not directly make any commitments. This is somewhat underhanded and the best tactic is to hold back and ask what they want as you make your proposals. This way, you can reveal what their intentions really are.

The ?Deal?: Another interesting strategy which is one of the most common tactics used by Chinese businessmen. Here, they appear to be agreeing to a big deal with your company by cutting their prices. However, they often greatly inflate their figures only to cut back on them partly in an effort to show that they are compromising. In this case, do your research and understand what their original prices are to avoid this standard tactic.

The ?Magic? Trick: A magician often will have you watching one hand while he pulls rabbits out of his hat with the other. This typical Chinese negotiating tactic is where they focus on one particular aspect such as price for example while avoiding some other aspect of the deal where they hope to gain an advantage. In this case, be sure to have all of your research done properly and look out if they are avoiding a particular subject.

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