Business Negotiations the Chinese Way - China Business Connect

Planning for an overseas business trip can be stressful. Other countries have different laws, languages, and customs. Even a trip to England may have pitfalls, as some of the spelling and grammar rules are different. A trip to a non-English speaking or non-Western country can be even more difficult to navigate. Committing a faux pas can have serious consequences, so companies sending a delegation overseas will often give their representatives a crash course in the local culture and customs. Some rules are fairly well known in the United States, such as not showing the bottom of your foot in the Middle East. Other rules are not as well known. For example, touching a person?s head is considered rude in Thailand.

One of the trickiest countries for Westerners to do business is China. Everything is different there. Not only are the language, culture, and religious traditions unlike those in the West, but the laws, political culture, and even the alphabet bear little resemblance to our own. Geopolitical tension is a factor as well. Many people in China, especially those allowed to interact with Westerners, are sensitive to criticism of their government. Travelers must also remember the important distinction between the People?s Republic of China and the Republic of China, or Taiwan, with the latter viewed as a rogue province by the mainland. All of this can make business negotiations in China very difficult for those who are not used to Chinese business protocol.

Fortunately, there are a lot of resources available for international business travelers. A simple Web search will yield information on what to do and not do in a certain country, and there are many professional consulting firms that offer detailed advice. This will help travelers avoid a faux pas that kills a potential business deal. Such mistakes may include inappropriate gifts like cut flowers or white objects, both of which are associated with death, or pouring your own drink.

Avoiding a breach of Chinese business protocol, however, isn?t enough to make the best deal. A delegation must also understand how Chinese business negotiations work. One major difference between Chinese business negotiations and Western business negotiations is that the former are focused on building relationships first, while the latter are more concerned with the results. Another major difference is Chinese businesspeople take a long-term view, Many Western business leaders, especially Americans, are concerned only with short-term gain. On the other hand, a major similarity is that a deal will be closed only when both sides feel they will benefit.

Business negotiations in China are most likely to succeed when the foreign visitors understand the differences in the process. It is important to understand the other side?s style and goals. Be sure to build trust first. If the people across the table are not saying much, recognize that this is because they are observing rather than being evasive. Be flexible, even if that means renegotiating issues on which an agreement has already been reached. By understanding the differences in culture and business practices, Westerners will be able to successfully handle negotiations in China.

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