Chinese Negotiating Behavior

Chinese Negotiating Behavior

Introduction

Since the year 1978, china economy has expanded and opened different paths to growth for the country. Over the years, the western countries have shown greater concern and interest in the Chinese market and therefore, they have negotiated with them in all aspects. The western countries face many difficulties while collaborating and negotiation with the Chinese from initiating to long lasting relationship. There are various Chinese culture elements such as dependence on interpersonal relationship and obscured decision making process, which makes negotiation with the Chinese more complex and difficult.

Discussion

Stages of Chinese negotiation process

Negotiation process is an essential element in business which helps in reaching business agreements and contains terms and conditions that will define the future behvior. The Chinese negotiation process is divided into three stages.

Pre negotiation

This stages started very early with the Chinese government authorities. In these stages, the Chinese show greater concern and interest in the foreign firms that want to have business relationship with the Chinese. They try to make sure that whether the foreign firms have the right technology, willingness to sell and the capability to transfer.

Lobbying

This is the most important activity. The foreign firms must satisfy the Chinese authorities that they have the accurate and adequate technology to conduct their business in the Chinese market. This way they can have long term commitment.

Presentation

It is the duty of the foreign firm to give the Chinese an attractive and pleasant presentation about the company and its products. This step helps the firms to convince the Chinese about the sincerity of their company and the reliability of their products

Trust building

The foreign firms must also try to build trust with the Chinese. In the Chinese culture trust is the most important thing and the Chinese give utmost attention to it. Therefore, the foreign firms should try their level best to establish strong and close relationship with the Chinese and win their trust.

Formal negotiation

Formal negotiation starts when the Chinese government agrees to reach an agreement with the foreign firms. After that the Chinese sent a formal letter which contains all their terms and conditions that has to follow.

Concessions

The formal negotiation ends with concessions and the both the parties try to compromise with the other terms and conditions.

Persuasion

In this stage, the Chinese government uses various methods and techniques to do business with their terms and conditions. They try to persuade the foreign firms to follow them while conducting their business.

Post negotiation

Even after the settlement of the agreement, the Chinese government may have queries and disputes with the foreign firms. In such situations the Chinese conducts several other negotiations with the foreign firms so that they can reach to decisions by consensus.

The Chinese give high priority to their contract and don't accept such firms, which do not full fill the terms and conditions. Usually the negotiation process extends to the post negations stage.

Factors affecting Chinese negotiation

There are three factors that affect the Chinese mentality and the way they negotiate with the foreign firms.

Confucianism, Taoism, and War Stratagems

Confucianism is based ...