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Mapping business opportunities in China Negotiations in China

3 General principlesChinese dont say NORelationship to foreigners is ambiguousThere is no win winner in horse trading

The Chinese have devised a number of methods of refusing something without exactly saying no. These include saying something is inconvenient, under consideration, or being discussed. Still another way of handling an ungrantable request is not to deal with it at all.

3Chinese dont say NOWhen negotiating with Chinese:inconvenient under consideration or being discussed.in reality means NO.

The Chinese have devised a number of methods of refusing something without exactly saying no. These include saying something is inconvenient, under consideration, or being discussed. Still another way of handling an ungrantable request is not to deal with it at all.

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A book that is NOT about dating.

Blending of .xenophobia xenophiliaPulling in one direction: distrust to foreigners, respect for Chinese tradition, strong nationalismPulling in opposite direction: the idea that Western technology and science can miraculously treat Chinese backwardnessSolution rationalizing that Chinese are only interested in Western technology as long as it will help them resolve their problemsRight balance of flattery about Chinese greatness and dwelling upon what outside world is better at needs to be stroked (difficult).

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In horse trading there is always a looser

Chinese believe that there is always a looser in trading.Suspicious of being outwitted.Historcial memory.Traditional suspicion of merchants and traders.

SOLUTION: Need to spell out in detail all the specific benefits for Chinese side7Opening MotivesThe other party start firstChinese interest remain maskedChinese negotiators will try to maneuver counterpart to reveal more

Chinese always insist the other party start first and reveals its expectations.Chinese interest remain masked, they might not be showing the interest during the negotiations (classic negotiation of bargaining).Chinese negotiators will try to maneuver counterpart to reveal more (trade, technical, commercial) secrets that it originally wishes for (common playing foreign parties against each other your competitor told us more).

8First state general principlesFirst a sense of general understanding (MOU, LOI) must be established Symbolic purpose, but can be used by Chinese to:Gain concessions later onTo attack the other party for bad faith and violation of the principlesNever compromise on LOI or MOUSymbolic purpose, but can be used by Chinese to:Gain concessions later on.To attack the other party for bad faith and violation of the principles (breaking the spirit of initial friendship).Never compromise on LOI or MOU believing that the issues will be dealt with later it will not change.

9The Long Wait

First rule in negotiation with Chinese is the need for patience.Foreigners assume moving from general agreement to specific deal will be swift that is not true.Chinese need approval from higher ranks.Stalling negotiations, but after their proposal expect immediate response.Skilled in mounting pressure, bringing important topics in awkward moments.Masters of the creative use of fatigue.Chinese have almost no capacity for boredome can repeat hundreds of times the same thing.

The Rule of PatienceChinese need time to digest informationChinese bureaucracy is sluggishChinese officials dont like to work overtimeChinese have a long range view of things (no hurry)Chinese want to be exactly sure of everything and avoid mistakesChinese distrust fast talkers who want to make quick deals

10Nothing is ever final

Chinese have less feeling for the drama of finalization of an agreement.Dont always except, that formalized contract automatically ends the negotiations.Chinese are perfectly able to raise questions only after the signature of the contract.Advantage just as there is no finality of agreement, there is no finality of disagreement

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