Download - Chinese Negotiating
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Chinese Negotiating Style:
Commercial Approaches
and Cultural Principles
Written by Lucian W. Pye
Presentation by Lisa DeMello
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Point of This Book 1. Minimize future misunderstandings
in Chinese commercial negotiations
2. Provide guidance for government-
to-government negotiations
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Summary 1. Practice atience
2. !ccet as normal" rolonged
eriods of no movement
#. Practice control against
e$aggerated e$ectations
%. &'$ect the Chinese (ill try to
influence by shaming)
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Summary (cont.) *. +esist temtation to believe that
difficulties may be caused by one,s
o(n mistaes . /ry to understand Chinese cultural
traits" but don,t believe that you" as
a foreigner" can ractice thembetter than the Chinese.
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Sources of ifficulties General Difficulties are0
Problems that come from ne( relationshis" and
lac of e$erience on both sides Caitalist vs. ocialist economy
Conflicting cultural characteristics
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ifficulties (cont.) Cultural Factors are0
Chinese culture shuns legal considerations" and
instead favor ethical and moral rinciles. /he Chinese do not searate business from
olitics.
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Am!ience of Negotiations /he 3ome Court !dvantage0
!s hosts" the Chinese are in a osition to control
both the agenda and ace of negotiations. With this the Chinese gain the advantage of
surrise and uncertainty in agenda
arrangements.
/hese situations tend to create an$iety anda((ardness in negotiation oonents.
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Negotiations (cont.) When 4riendshi Clashes (ith the
Desire 4or the 5est0 /he Chinese vie( that all successful
negotiations should include0 mutual trust" resectand friendshi.
Chinese d(ell of the sub6ect of friendshi and its
recirocity is a rere7uisite for doing business inChina.
/he search for &only the best) conflicts (ith&friendshi)" and usually (ins out.
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"pening #o$es 8ou ho( 8our 3and 4irst0
9n Chinese negotiating" they insist that the other
arty reveal its interests (hile the Chinese mastheir interests and riorities.
/he first ste is a descrition by the !merican
comany of its entire line of roducts and
services" and ho( they may be a value for theother arties goals.
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"pening #o$es (cont.)!mbiguity !bout Letters of 9ntent
/he Chinese see agreement on general
rinciles and often taes form of signing a letterof intent.
/he future imortance of these letters areaffected by the Chinese attitudes to(ard ublicityabout agreements (ith foreign comanies.
!nnouncements of negotiating success mayinfluence investors and reassure tomanagement.
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The Negotiation Session Exploiting the Faults of the Other
Party
&Most Chinese are raised and taught throughnegative reinforcement or shaming.)
9t is a standard tactic to mae use of any
liabilities" mistaes and misstatements of the
oosing side. /hey feel that it strengthens their osition by
sueriority.
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The Negotiation Session (cont.) 9n 3orse /rading /here is !l(ays a
Loser0
/he Chinese are highly susicious of beingoutsmarted.
/hey are convinced that in any situation there
must be a (inner and a loser.
'ven (hen both are benefiting" one (ill benefitmore" so there is still a loser.
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%motions in Negotiations 5lending of :enohobia and :enohilia0
:enohobia are dee feelings of distrust and
distaste for most things foreign. :enohilia is the alluring attraction of the
industrialized (orld" articularly foreign
technologies.
/he right balance can be difficult to achieve. /he best solution is to be sensitive to the roblem
and not be surrised by changes in attitude;mood.
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%motions (cont.) 4ace and
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&n Conclusion 1. /he Chinese need time to digest all
information
2. /hey have a long-range vie( and areless in a hurry to mae decisions
#. /he Chinese distrust fast talers (ho
(ant to mae 7uic deals
%. >no( Chinese cultural
differences" but be yourself
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'ecommendation While this boo is not al(ays olitically
correct" it does rovide useful
guidance for conducting negotiationsin diverse cultures.
?ust over 1@@ ages
'asy to read and follo( in an outlineformat
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