In China you will find yourself at an imaginary “negotiation table” more often than in western culture. And it’s not just true of purchasing a larger item like a house, car, or employment offer; which westerners may find more typical to negotiate. A negotiation is also likely to take place over smaller purchases like clothing, vegetables or fish market. Negotiation is expected everywhere in China. So understanding negotiation expectations is critical for success. Business schools teach negotiation courses globally, but often the most important aspect of negotiation is left for business men and women to learn on the job. The most important aspect of successful negotiation is knowing your opponent. Understanding their expectations and cultural influences. Negotiating with a Chinese businessperson requires a westerner to adapt his/her strategies and skills differently.
Negotiation in the Asian Culture The Asian culture in general, (and the Chinese in particular), is an introvert culture. We are less direct, require more time to react, show a low level of trust towards outsiders, and focus primarily on establishing relationships. In my experience, westerns focus more on the deal, respond quickly when interested, and begin with a level of trust as long as items of contention are written within a contract. In each of these areas, a westerner can step out of turn if they are not careful. For example, anything expressed too directly or at an inappropriate time is considered rude. Here is how I recommend adapting your tactics when negotiating with Chinese business partners:
Setting targets: Set and adapt your targets specifically to the Chinese business culture, for instance, building relationship might come before signing contract in your target.
Respect your opponent: Respect their way of thinking and being. Give them the time they need to respond.
Emotional compensation: If you are the party in power, take the emotion of your opponent into consideration instead of focusing only on achieving your goal.
Change and adapt stepwise: A stepwise approach can be more effective – confirm mutual understanding and agreement after each step and then move forward.
Master the tactics of your opponent: “One who knows his own strength and that of the enemy is invincible in battle.” – “The Art of War” by Sun Tzu.
Practice in an actual combat: The techniques sound familiar, don’t they? For example, one globally understood – negotiation strategy called “turn the tables”. Purchasers often use this tactic after a seller asks him/her the absolute maximum they would be willing to pay. The purchaser would “turn the table” by asking the seller for the absolutely minimum they’d be willing to accept. This tactic is used often in China. It often is like a game of “Ping Pong” which goes back and forth a couple of times. In each round each side would only lower the offer a small amount. Both parties know that this dance will continue and that stating their offer as and “absolute maximum” or “absolute minimum” are absolutely meaningless. Both sides also make up nonsenses in order not to increase/decrease the price. For example one may repeatedly state a new low price is the lowest they can go, or vice versa. The back and forth until a deal is set can be a lengthy process, and a real test of patience and persistence. To rush it or not understand it would easily kill the deal.
Would you like to learn more how to apply negotiation tactics in a Chinese context? Contact us to book a free personal consultation, and learn how.
