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1. Negotiation goal

For many the objective of negotiation is a substantive result and material gain. In China the deal is all about the relationship and there is no other method to succeed in doing business than through a close partnership, so think about investing a lot of time in this pre-negotiation phase.

The goal of negotiation is not the signed agreement and unexpected events are resolved through the relationship; the contract is more a sign of the intent to do business together than a legally binding document. Trust is the basis of the contract and the fact that you have signed an agreement does not actually imply that the deal is sealed; it implies that an alliance has been established.

2. Negotiation attitude and communication approach

The Chinese negotiation approach is one of teamwork and problem solving whilst still fixed on the bottom line.

The communication approach is expressed by using titles, following protocol and being highly respectful and aware in conversation. Always start with an official approach, using first names and an informal style is dangerous and can be viewed offensive and interpreted as an insult.

When you negotiate, read between the lines to ascertain the true meaning. It is unusual to be told a direct no and you will more likely hear "it is difficult" which in fact does mean that you have no chance of success. Do not anticipate to receive direct clear replies, because you will try to resolve something that "is difficult" when in fact it can't be fixed.

3. Time perception

A lot of time is spent in building up a relationship which is a sign of respect and which is supposed to be reciprocated. For Westerners time is sacred and the Chinese usually exploit this fact. Preparation is therefore vital, create options and let the otherside know that they are is not the only party who can walk away from the transaction. Bear in mind that "tomorrow" or "next week" often doesn't literally imply the following day or week; but this could mean "in the future".

4. Negotiation style

What for most Westerners may seem to be innocent mingling is in fact their way of gathering information.

Chinese negotiators are well versed in the art of positioning & framing, the intricacies of pricing and the use of delays as a negotiation tactic. They have excellent negotiation skills and will often use negotiation tactics to embarrass or shame their counterpart in order to create stress and gain the advantage. Take the blame if a problem arises whether you are accountable or not and do not react with disrespect.

Your entire team is advised to attend the meetings and it's vital to arrange for someone with a rank of authority within your organisation to make the introductions and to escort you during meetings. Without visible official support, you will be sending out the wrong message about how genuinely you view the negotiations.

5. Team based negotiations

The Chinese almost never negotiate unaccompanied. It is not always clear who the manager is and who has complete authority to decide issues. Although decisions are made by consensus, there is normally one leading authority who may not be very active during negotiations. Gain the attention of their senior negotiator and direct your most persuasive and logical arguments towards him. The rest of the team usually plays the role of an advisory body.

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