Asian Negotiation - Doing Business in China

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Presentation about Asian Negotiation and Doing Business in China. Visit: http://www.globalonepro.com

Transcript of Asian Negotiation - Doing Business in China

Asian Negotiating Tactics

Irl Davis

DETERMINANTS OF CULTURE

•Economic philosophies•Political philosophies•Education•Language•Religion•Societal Structure

Cross-cultural confusion

What happens when different negotiation behaviors come into contact?

Core Values

Norms

Behaviors

Core Values

Norms

Behaviors

Comparing American and the Chinese Negotiation Styles

One-quarter of the world’s population (1.3 billion people)

Rapid economic growth Increasing openness Growing consumer market Expanding business opportunities

What is a negotiation?

American Process driven with defined goal Deal/Contract

Chinese Has no word that means “negotiation” Exchange of information – dialog Often no clear conclusion

Cultural Differences

Consensus Confucian system – ethics and morals Decision – making “Manzi” – face “Guanzi” – connections The role of the word “No”

Phrasing for Success

American

Do you understand?

What?

We cannot do that!

What is the problem? You said you fedex’d us the papers but we did not get them.

Chinese

Are we beginning to be clear?

Could you please repeat that as we did not understand

That may be difficult for us to do

There must be a problem with the courier because we did not receive the papers

The Chinese Negotiation

American Individual Egalitarian Information

oriented Reductionism/

linear Argument culture

Chinese Collective Hierarchal Relationship

oriented Holistic/circular Haggling culture

The Chinese Negotation

AmericanTime is money-fast meetingsInformalCold callsFull authority. Proposes

desired solutions firstAggressiveImpatient- make a good

ChineseA getting to know processFormalIntermediariesLimited authority. Explains

desired goals firstQuestioningEnduring- seeks a relationship

Chinese Proverb

The chicken said to the pig:

“Let’s make breakfast. I’ll supply the eggs and you supply the bacon!”

Expected negotiation tactics

AmericanOpenness/honestyStrengthConfidenceEfficiency

ChineseFaceRespectFlexibilityPatience

Chinese Proverb

“Bu da bu Xiang Shi”

Translation:

“without a fight you do not know each other.”

Tips for Success

1. Build guanzi – find the right people2. Think beyond the short term3. Be sensitive to timing4. Turn negatives into positives5. Show it is good for China6. Be flexible7. Avoid becoming indebted8. Build on successes and failures9. Minimize your “no’s”10. Control your emotions11. Increase your importance (status)12. But, be yourself – You are not Chinese!

Thank You !!