Asian Negotiation - Doing Business in China
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Asian Negotiating Tactics Irl Davis
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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 !!
