Chinese Business Negotiation Styles
Generality and details
The Chinese negotiation style is characterized by moving from the whole to individual parts, from bigger to smaller issues, from generality to detail; the Chinese say, “From negotiation on principle issues to negotiation on details.” Chinese people normally start with the common interests and overall principles that both parties agree to abide by. In comparison, Westerners focus more on the details and less on principle matters as it is believed that grand issues emerge from individual issues. Westerners are more practical, pay more attention to details and are eager to discuss detailed issues at the beginning.
Principles and flexibility
Chinese negotiators adhere to their principles and long-term objectives and may be insistent when dealing with issues of principle. However, they can be pretty flexible when dealing with other issues, such as reaching a consensus on projects and the expedition of such projects. Chinese people are very practical and prefer to lay longterm plans as opposed to short-term ones.
Chinese people like to compare prices and love bargaining. Therefore, they usually try to eliminate some conditions on the basis of their counterpart’s quotes or even demand quotes from third parties. Sometimes, foreigners feel that the Chinese show little respect, but this is simply the way to do business in the eyes of the Chinese. They believe that they can get a better deal after comparing prices and factors.
Hierarchy and decision
China is a country which adheres to a very strict order of hierarchy. In business meetings, Chinese people prefer having representatives from both parties at equal hierarchy. Therefore, it is necessary that the two representatives should have the same or at least equivalent positions. If the highest-ranking person from the foreign party is only an assistant to the president, normally the Chinese party will not send its president to the meeting. The foreign party should value the Chinese customs, abide by the rule of equivalence, and empower a person with the same rank to show its respect and sincerity.
Chinese culture puts more emphasis on collectivism so that the decision is often made by a group of people rather than an individual. Usually, it takes much longer for Chinese to make a decision because all group members will exchange their views and coordinate all opinions before reaching a consensus. Moreover, after making a decision, they will have to report it to their superior for approval, meaning that you will have to wait for some extra time. In this case, you’d better ask them, “How long do you think I will have to wait?” or “Would you please tell me how long I can get the answer?” Sometimes though the two representatives have already reached an agreement, the Chinese party may still tell you that the final decision will have to be made after the approval of the top management. Don’t be surprised as it is possibly the decision-making process of a Chinese company.
Other details
Business cards are mini-resumes for business occasion. Therefore, you should give and receive business cards with both hands to show respect. Do not put business cards in your bag or pocket casually without first looking over the front and back of the card.
Chinese people are reserved and shy. They love to smile, but staring at others is regarded as rude. Therefore, Chinese people usually look a bit above or below others’ eyes when negotiating and rarely directly in the eye. Chinese people are also embarrassed by hugging and kissing, which may be common in Western countries; shaking hands is normal business etiquette in China.
An edited excerpt from When in China: A Guide to Chinese Business Culture published by Sinolingua Co. Ltd.