International Marketing_business Negotiations in China

8/3/2019 International Marketing_business Negotiations in China

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Aaditya Rathod

M1.

Roll no-01.

Subject-international marketing.


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The chinese.

Weird eyes.

Looking d same.

Speaking a language in which all words sound similar. Evolved but culture also evolved ie havnt left their

culture behind to adapt a new one.


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The first thread is agrarianism.

two-thirds of the Chinese people still live in ruralareas, laboring primarily in rice or wheat cultivation.

Traditional Chinese agriculture is peasant farming. It is communal, not individualistic; survival depends

on group cooperation and harmony.

Loyalty and obedience to familial hierarchy binds

laboring groups together. Many of China's city dwellers were born and raised in

the country and have retained their agrarian values.


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In general, the Chinese are a collective society with a need for groupaffiliation, whether to their family, school, work group, or country.

In order to maintain a sense of harmony, they will act with decorum atall times and will not do anything to cause someone else public

embarrassment.

They are willing to subjugate their own feelings for the good of thegroup.

This is often observed by the use of silence in very structured meetings.

If someone disagrees with what another person says, rather thandisagree publicly, the person will remain quiet.

This gives face to the other person, while speaking up would make bothparties lose face.


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The Chinese' Non-verbal communication speaks volumes.

Since the Chinese strive for harmony and are group dependent,they rely on facial expression, tone of voice and posture to tellthem what someone feels.

Frowning while someone is speaking is interpreted as a sign ofdisagreement. Therefore, most Chinese maintain an impassiveexpression when speaking.

It is considered disrespectful to stare into another person's eyes.

In crowded situations the Chinese avoid eye contact to givethemselves privacy.


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The Chinese don't like doing business with companies they don't know,

so working through an intermediary is crucial.

This could be an individual or an organization who can make a formalintroduction and vouch for the reliability of your company.

Before arriving in China send materials (written in Chinese) that describeyour company, its history, and literature about your products and services.

Business relationships are built formally after the Chinese get to know you.

Be very patient. It takes a considerable amount of time and is bound up withenormous bureaucracy

The Chinese see foreigners as representatives of their company rather thanas individuals.


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Rank is extremely important in business relationships and youmust keep rank differences in mind when communicating.

Gender bias is nonexistent in business.

Never lose sight of the fact that communication is official,especially in dealing with someone of higher rank.

Treating them too informally, especially in front of their peers,may well ruin a potential deal.

The Chinese prefer face-to-face meetings rather than written ortelephonic communication.

Meals and social events are not the place for businessdiscussions.

There is a demarcation between business and socializing inChina, so try to be careful not to intertwine the two.


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Appointments are necessary and, if possible, should be made betweenone-to-two months in advance, preferably in writing.

You should arrive at meetings on time or slightly early.

The Chinese view punctuality as a virtue. Arriving late is an insult andcould negatively affect your relationshipPay great attention to the agenda as each Chinese participant has his orher own agenda that they will attempt to introduce.

Each participant will take an opportunity to dominate the floor forlengthy periods allaying fears of on-going association.

Guests are generally escorted to their seats, which are in descendingorder of rank. Senior people generally sit opposite senior people from

the other side.


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Presentations should be detailed and factual and focus on long-termbenefits. Be prepared for the presentation to be a challenge.

Greetings are formal and the oldest person is always greeted first.

Handshakes are the most common form of greeting with foreigners.

Many Chinese will look towards the ground when greeting someone.

Address the person by an honorific title and their surname. If they wantto move to a first-name basis, they will advise you which name to use.

The Chinese have a terrific sense of humour. They can laugh atthemselves most readily if they have a comfortable relationship with theother person.

Be ready to laugh at yourself given the proper circumstances.


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Only senior members of the negotiating team will speak.Designate the most senior person in your group as your

spokesman for the introductory functions.

Business negotiations occur at a slow pace.

Be prepared for the agenda to become a jumping off point forother discussions.

Chinese are non-confrontational. They will not overtly say 'no',they will say 'they will think about it' or 'they will see'.

Decisions may take a long time, as they require careful reviewand consideration.

Under no circumstances should you lose your temper or you willlose face and irrevocably damage your relationship.


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Chinese negotiations are process oriented. They want to determine if relationships can develop to a stagewhere both parties are comfortable doing business with the other.

Chinese negotiators are more concerned with the means than the end, with the process more than the goal.The best compromises are derived only through the ritual back-and-forth of haggling. This process cannot be

cut short. And a compromise allows the two sides to hold equally valid positions. Do not use high-pressure tactics. You might find yourself outmanoeuvred.

Business is hierarchical. Decisions are unlikely to be made during the meetings you attend.

The Chinese are shrewd negotiators.

Your starting price should leave room for negotiation. casualness does not play well in a country where the Confucian values of obedience and deference to one's

superiors remain strong.

Holistic Thinking)The Chinese think in terms of the whole Chinese negotiators tend to talk about those issues all at once,skipping among them, and, from the Americans' point of view, seemingly never settling anything.

Thrift)China's long history of economic and political instability has taught its people to save their money, a practice

known as jiejian. The focus on savings results, in business negotiations, in a lot of bargaining over price

usually through haggling. Chinese negotiators will pad their offers with more room to maneuver than mostAmericans are used to, and they will make concessions on price with great reluctance and only after lengthydiscussions.


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The eight elementsThe cultural influences outlined above have given rise to a clearly defined set of elementsthat underpins the Chinese negotiation style. Most American businesspeople we haveworked with often find those elements mysterious and confusing. But if Americans ignorethem at any time during the negotiation process, the deal can easily fall apart.

Following are the eight important elements of the Chinese negotiation style in the ordermost Westerners will encounter them:

Guanxi (Personal Connections)While Americans put a premium on networking, information, and institutions, the Chineseplace a premium on individuals' social capital within their group of friends, relatives, andclose associates.

Zhongjian Ren (The Intermediary)Business deals for Americans in China don't have a chance without the zhongjian ren, theintermediary. In the United States, we tend to trust others until or unless we're given reason

not to. In China, suspicion and distrust characterize all meetings with strangers.

Shehui Dengji (Social Status)American-style, "just call me MaryThe formality goes much deeper, howeverunfathomablyso, to many Westerners.


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Renji Hexie (Interpersonal Harmony)The Chinese sayings, "A man without a smile should not open a shop." and "Sweet temper andfriendliness produce money." speak volumes about the importance of harmonious relationsbetween business partners.

Zhengti Guannian (Holistic Thinking)The Chinese think in terms of the whole while Americans think sequentially andindividualistically, breaking up complex negotiation tasks into a series of smaller issues:price, quantity, warranty, delivery, and so forth. Chinese negotiators tend to talk about thoseissues all at once, skipping among them, and, from the Americans' point of view, seeminglynever settling anything.

Jiejian (Thrift)China's long history of economic and political instability has taught its people to save theirmoney, a practice known asjiejian. The focus on savings results, in business negotiations, ina lot of bargaining over priceusually through haggling. Chinese negotiators will pad theiroffers with more room to maneuver than most Americans are used to, and they will makeconcessions on price with great reluctance and only after lengthy discussions.

Mianzi ("Face" or Social Capital)In Chinese business culture, a person's reputation and social standing rest on saving face. IfWesterners cause the Chinese embarrassment or loss of composure, even unintentionally, itcan be disastrous for business negotiations.

Chiku Nailao (Endurance, Relentlessness, or Eating Bitterness and Enduring Labor)The Chinese are famous for their work ethic. But they take diligence one step furthertoendurance. Where Americans place high value on talent as a key to success, the Chinese seechiku nailao as much more important and honorable

International Marketing_business Negotiations in China

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