Chinese Business | The Secrets of Negotiation with Chinese partners

Understanding Chinese cultural business practices helps to prepare your company to handle all the intricacies and tactics that this part of the world brings. Such preparation will also get you the best deal possible both in the short and long term. All too often business owners and negotiators accustomed to Western business practices are caught unprepared by these Chinese cultural business practices.

This is somewhat understandable since the Chinese culture itself has many of their significant differences covered by their obvious capitalistic methods. Unfortunately, the negotiating tactics that are used are very different from those familiar to Western business owners. Here are a few solid international business tips you can follow when negotiating with Chinese cultural business officials so that you understand exactly your position and what you are getting out of this process.

Avoidance: Perhaps one of the most common techniques used by Chinese negotiators is to simply avoid direct negotiations. This can be quite confusing since the idea of not directly negotiating seems like such a waste of time and effort to the uninitiated. However, this can be a powerful tactic since it provides valuable information on the seriousness of your offers, business sense and intent. When faced with avoidance, simply have your representatives restate your position on each meeting and patiently wait for this tactic to cease.

False Agreement: A seldom used tactic but one that can be quite disconcerting. Here you are faced with what seems to be total agreement but no commitment. Often this is done by the junior members of the Chinese organization that you are negotiating with while the main bosses are either not

False Deal: One of the most common and trickiest tactics used by Chinese businessmen is the agreeing rather quickly to a deal, especially when you are purchasing products or materials that they make. Usually they reinforce their commitment by slashing their prices, but the truth is that the prices were highly inflated in the first place. The key here is to find out their prices beforehand and stick to the prices that are what they really sell for.

Inflation: Another common tactic which on the surface resembles ?Avoidance?, but instead of not meeting with you or avoiding negotiations, they talk up how big a deal this could be and speak in almost wild terms. Here the key tactic is to keep your cool, stick to your negotiating position and wait for all the ?wild talk? to die down.

Overlook: Did you ever see something that you wanted and the salesman kept talking about one aspect of that product, but ignored another. Sure enough the part of that product they ignored turns out to ruin it. Here, the standard Chinese tactic is to push one aspect of one part of the deal while overlooking another part that they hope to sneak through. Here, you want to make sure you cover all parts of the deal equally early in the meeting and identify what they are overlooking so you make sure you get the deal you want.

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Source: http://china-business-connect.com/chinese-business.htm

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