There have been frequent challenges in the business negotiations between the US and China. Despite the fact that these two countries need each other, they just cannot seem to iron out the differences between them. May be the problem is that one feels that it is the big uncle, the watchdog, while the other one sees itself as the center of the universe and so forth. The truth is that the two are very important to the international trade in the world and therefore no matter what the differences, only expert negotiators can iron them out. If you want to succeed in negotiating with Chinese suppliers, bring in expert negotiators.

Include technical experts in the team. Now, to you negotiations may be a waste of time, but not to the Chinese. To them, it is where all the fun is and therefore they do it with gusto. However, do not expect to read anything on their inscrutable faces, because they do not display emotions easily. All this is tact to overwhelm you. They will never lay all their goals down before hand, and therefore you had better be ready for long negotiations, stretching to several days even. The bigger the deal, the longer the negotiations. Usually, if you can persist in negotiating with Chinese suppliers, you will eventually get the deal.

Do you know how the Chinese gain the upper hand in the negotiations?

By exercising patience and pushing the other party to the limit. Do you want to beat them at their game? Then be very patient and you will not only get the contract, but you will also earn their respect. Know that as they come to the table, they expect to have a long discussion where they can test you. Juts be patient and know how to read all the signs.

Negotiating with Chinese suppliers need not be hard, but if you are not careful, they will definitely have the upper hand.

Another very important factor for how to negotiate with Chinese suppliers is to understand some aspects of the Chinese culture. For example, a senior Chinese does not like to lose face in front of his juniors. Therefore, if you are invited to lunch or a simple drink, please go and return the favor tomorrow because that is the custom. The western bureaucracy and working-through-lunch thing will simply not hold water with the Chinese. As said earlier, remember that patience and keeping your cool is the key to negotiating with Chinese suppliers successfully.

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There are a few tips to help you succeed with any type of business meeting that you have.

Greeting the Other Person

You may find that the Chinese tend to bow slightly or nod their heads when greeting someone. However, this is not always the case when it comes to a business meeting in China; especially when it comes to a meeting with foreigners. A handshake is extremely common for business meetings, both for greeting and leaving the meeting. It is worth remembering that both are possible but a nod of the head will show respect for the Chinese culture.

It is important to arrive on time – or early if you can. The Chinese may be slightly late but you will start the meeting off well by being on time. Make sure that everyone knows about the time and all representatives of your firm are punctual.

Business cards – also referred to as name cards – are usually given at the first meeting. You will need to give and receive the cards with both of your hands as another mark of respect for your business meeting in China.

The Order of Names

It is very important not to be mixed up with the names when it comes to any business meeting in China. The first thing to know is that the family name is usually the first name given – the person’s first name will be second. So, if you meet someone named Li Hua, they will be called Mr. Li.

To make it complicated, some Chinese will switch their names around when dealing with foreigners. They believe that it helps the foreigners feel at ease. Others will even adopt Western names to also help with the business meeting. It is worth doing your research into the people that you will meet before attending so that you are prepared for this.

Send a High Rank

When it comes to selecting the people to attend the business meeting in China, it is important to remember that the Chinese highly regard seniority and rank. Choose someone of a high rank. If you own the company and cannot attend yourself, select the next person down in seniority to go for you. The last thing that you want to do is offend the Chinese by sending a new person who has no seniority in the firm. You will also benefit by ranking your company. If you are the oldest company or the largest in your area, the Chinese are more likely to pay more attention during the meeting.

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Americans are raised with being told that they are unique, special, and deserving as a general rule. This breeds a level of confidence and entitlement that is not always present in other cultures. In America actions and business decisions often are made in the way that is most rewarding for the decision maker or even with a “cover your backside” mentality that has helped the corporate lawyer industry really grow out of control. American’s can be strong negotiators and tend to work towards leadership roles regardless of actual merit. Americans use a direct and honest approach in business that can be interpreted as pompous or rude to other cultures.

The Chinese are raised with being thought to think of the whole when acting. This whole can be the family, the world, and the business. They do not operate with a sense of entitlement and instead often work to please all parties during a negotiation. Chinese business culture very much revolves around the idea of making the other party feel that they have made a good agreement and a job done correctly the first time. Chinese business culture can be very subtle and one must understand body language and

Chinese etiquette to make sure that they are not offending or overreaching.

American’s need to recognize the difference in styles not to say one is better than the other, but to make sure they with understanding Chinese business Culture they can avoid faux pas and overreaching to make a bad deal. A Chinese businessperson is trained my society to never say no, but to say lefts compromise. This can set them up to make a bed business choices at first, but overreaching American’s can quickly find that they have accidently burned bridges by appearing greedy and unwilling to work for the good of both companies as the Chinese business person was.

When interacting with Chinese based companies you must be aware of your actions as well as theirs. Take the time to check yourself throughout the interaction to make sure that you are not being to overbearing, blunt, or loud as these will all seem rude.

Also be away of all that it happening with the people you are meeting with. Take time to learn proper customs and etiquette in China to make the very best impression that you can.

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Negotiators Understand the Etiquette

One of the main benefits of hiring someone when negotiating purchases, business contracts and everything else in China, is that Chinese negotiators will understand the etiquette in the country. This is very important as good etiquette will get you far. Some of it is down to simple things like smiling, even if you are frustrated, while other parts of negotiating is understanding when to stop pushing and have gotten the best deal available. There are websites that help with etiquette and books about it but it can take some time to learn, whereas the negotiators understand it already.

Understand the Different Styles

There are different styles of negotiating in China, depending on the area that you are in. This leads to a problem for many businesspeople and shoppers as they have to work out which style to use; opting for the wrong style could lead to causing an offence and lead to not getting the outcome preferred. By hiring Chinese negotiators you will cut out this issue as the negotiators understand the different styles and when or when not to use them.

Teach You the Skills

There is no need to hire a negotiator for the whole trip. There are many who will offer lessons in negotiation in China. Most of these are available for businesses but it is also possible to hire these Chinese negotiators for personal reasons – of course, you will need to consider whether the cost is worth the money that you could save while bartering. The benefit of hiring someone for a short period is they will help to save money while learning about everything you need when it comes to making negotiations in the country.

Hiring negotiators to help you is something to consider, especially for those making business negotiations. This will help to ensure that you get the right style when it comes to making the negotiations to help you get exactly what you are after. However, it is possible to learn the tips and tricks without hiring Chinese negotiators, which will help to save money. It is important to consider the need and the budget available.

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Chinese Culture

When dealing with the Chinese you have to take into account the rich history of that area of the world. It’s vastly different from the norms and expectations of Western culture that we are all used to dealing with. You need to understand Chinese culture to have success dealing with them. The country is huge and the regional customs in one area of China may be different in another area. You need to make note of these when you deal with them. The business and ethics in one area may pose different challenges in deals there. The fundamentals of dealing with the Chinese will still apply but small, subtle variations can be a key difference in the failure or success of the negotiations.

Dimensions of Business Ethics

While large corporations may be able to dictate terms of deals on their own die to market influence and business power. Smaller companies may find it difficult in the field of intense competition to work with the Chinese unless they understand their business practices and culture.

How Foreigners Should Deal with Chinese Business Ethics

To deal with the Chinese it would be best to have a team that can speak the language or at least have someone that can relay messages. If you can speak the language and have cultural appreciation of Chine you’ll naturally no better in deals with them. The Chinese have deep ties to family and traditions and you need to respect these. You’ll gain their trust over the long-term and they are naturally suspicious of outsiders. Negotiations with them can last a long time and they like to haggle over the details. It’s critical to know this when dealing with them since negotiations can easily fail.

Networking or Guanxi is central to their way. All Chinese form a united front when it comes to this central value of their culture. Foreigners need to respect this network and should strive to become a part of their circle. This will build harmonious and successful transaction over time with them.

Outsiders must see the differences between the ways they do business and how the Chinese conduct business. It’s good to discuss ethical dilemmas with associates in the area and work towards solving problems. It’s not in your best interest to patronize them or try to force negotiations because it just won’t work. You need to respect their values for the deals to work with them.

The Chinese way of business emphasizes empathy, and a balance between the conflicting interests of various shareholders.  You’re seen as a collaborator not an enemy as a competitor. They like to juggle many objectives a at one time so it might seem like negotiating with them is somewhat chaotic or they lack direction.

Your Chinese associates will appreciate being respected for their own beliefs. Don’t have an attitude of superiority when working with them. Their actions may seem strange to you but you are just as strange to them. Only by understanding their culture and beliefs can you hope to have good negotiations with them. Take it slow and build good relationships with them and don’t rush through the process. Be prepared for some ups and downs and you may need to make a few sacrifices for negotiations to work.

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First impressions are invaluable in any culture, and so is punctuality. Do not ever show up late to an important business meeting. Arrive promptly on time, or early, and prepared with any tools or parts of the presentation needed. It is considered thoughtful to bring extra copies of any printouts so that the highlighted information can be left behind. Proper attire for both men and women is critical to make a proper first impression. Neutral colors and conservative or classic cuts are always acceptable and tasteful. It is improper for women to wear revealing clothing and should also not wear short sleeved shirts on any first meetings. Denim is never acceptable business attire but can be worn for casual meetings with business associates after first meetings.

Proper Chinese etiquette at the time of greeting has grown to take on a more global approach. Bowing or head nodding is the traditional form of greeting during an introduction. Only if they offer a hand first should you shake hands, and make physical contact brief as this is uncommon in their culture. It is culturally unacceptable for a woman to touch a man during a business meeting or visa versa. Treat an introduction as the formal event it is using and bestowing proper titles such as mister, doctor, sir, et cetera and do not being using first names until they do. The Chinese will often use an American sounding nickname to help us with the pronunciations, so take advantage of their courtesy rather than mispronouncing their name.

In Chinese culture the “cold call” is a rather unusual thing, so do not show up at a place of business unannounced. Always make sure that you have an appointment, or at the very least call ahead to make sure that the person or people that you are meeting with are willing to receive you. During the meeting it is easiest to default to following your host’s lead.

For example, do not begin eating until they do, do not drop formal titles until they do, and do not under any circumstances leave the meeting until they do.

This is considered rude and implying that you feel the meeting was a waste of your time.

The Chinese culture is one based around the idea of proper behavior and working for the good of the whole, the only way such a densely populated country could truly survive. When in doubt allow general common courtesy and your host to be your guide and chanced are you will be practicing proper Chinese business etiquette.

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Of course, if you are in a new country, you always have to get to know about their customs, and business etiquette has customs of its very own — no matter which country you are in.

To start with, you will always need to be prepared. Have all of the paperwork that you could possibly need, and, if needs be, have a direct link back to your H.Q so that you can verify any information that you may have forgotten, or has been requested that’s outside of what you were expecting to handle. Not being adequately prepared is a sin in any business negotiations, but when its business negotiations in China, you also run the risk of ‘losing face’ in front of your counterparts in the other company, and that is not a good thing.

Speaking of counterparts, are you dealing with representatives of your own ‘standing’? In business, the Chinese negotiate with people who are of their own equivalent, or higher, in the other company. Again, this has a lot to do with custom, and the pecking order within a business. If you send someone to do your business negotiations in China, who is not of sufficient standing within your company, that can be seen as being disrespectful; not a smart thing to do for the future of your business.

Another thing that you need to keep in mind, when the Chinese negotiate, is they don’t tend to expect there to be a resolution at the first meeting, so don’t you expect there to be one, too. Meetings only last a few hours, appear to be going nowhere, and you have to come back and start again at some later date. That is often how the Chinese negotiate — and is a way of helping to keep control over the proceedings — so be prepared for it, and don’t think that just because you didn’t seem to get anywhere, that the deal won’t be done.

One other helpful tip, to make your business negotiations in China go smoothly, is to disclose as much information to the people you are dealing with, as you possibly can. If you can do that, you are going to remove any potential embarrassment of them not being aware of something that you are talking about; this helps them to save face in the negotiations, and this also shows respect for the people you are dealing with.

Naturally there are many other things that you should become familiar with when carrying out business negotiations in China, and there are two sure fire ways of finding out what they are. The first is trial and error, but nobody wants to lose a valuable business partner in a foreign country by doing that. The second is to enrol in Chinese negotiation workshops.

Now, Chinese negotiation workshops may sound like an extravagant means of training your representatives, but when you consider the scale of the Chinese market, and what it can do for your business if you get an early foothold, Chinese negotiation workshops are really going to be a sensible investment in securing the future of your business.

Remember, the Chinese negotiate in a different way to what you may be used to, and business negotiations in China could be a key way to grow your company beyond these shores; so take advantage of Chinese negotiation workshops, as it make sound business sense.

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Crossing the Road

Pedestrians do not have the right of way when it comes to crossing the road in China. Avoid crossing the road on your own where you can – look for a crosswalk and a group of people. The Chinese are less likely to continue driving when a group is involved because they will want to refrain from denting their car – it has nothing to do with dangerous driving!

Be Friendly When Bartering

You want a bargain when it comes to buying items and in markets and private stores, this is possible. However, good etiquette with the Chinese is important for this. You will need to be polite and build up a friendly relationship with the seller; the friendlier you are, the more willing the seller will be to offer a better price. Avoid pointing and shouting; as if there is a better deal that the seller will be able to offer or whether there are any extras that can be thrown in.

Public Displays of Affection

Good etiquette with the Chinese when it comes to PDAs all comes down to who you are around. When around younger Chinese people, you will get away with kissing and shows of affection. However, when around the older people, avoid anything more than a peck on the cheek or holding your partner’s hand; it is embarrassing for the people around you.

If in Doubt, Smile!

If you are in doubt of anything in China, just smile. The Chinese smile for a lot of reasons – including during an argument! Smiling during an argument will mean that they do not want to lose a possible friendship; however, people will also smile because they are embarrassed, they do not understand something or just simply because they are happy. There is nothing wrong with smiling while you are in China.

Use Chopsticks Correctly

Good etiquette with the Chinese also comes down to how you use your chopsticks. Avoid pointing the sticks in someone’s face and do not lick them – no matter how tasty the sauce may be! Something to definitely avoid is sticking the chopsticks upright in a bowl of rice. This action is practiced by the Chinese as a way of honoring the dead at their graves and will be considered to be disrespectful.

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Unlike many of the new business practices happening in the US and modern Europe, business philosophy in China still has strong links with the country’s history, and other cultural identities. With Taoism and Confucianism playing a large part in the daily lives of the average person in China, it’s more than understandable that the philosophies of both have found their way into Chinese business etiquette; after all, they have been a part of the way that the businesses have traded over the centuries, so it follows that what has worked until now, should still work into the future, too.

How does this influence China business culture, and maybe point to areas where you can improve when dealing with a Chinese business?

As well as affecting their social behavior, a China business culture that has Taoism and Confucianism at the heart of it will follow a strict social order, too. This hierarchical structure — while not present in all Chinese businesses — means that it is safer to be mindful of the way that it works, rather than take the risk of ignoring it, and offending the company that you are dealing with. Put simply, the way it works is this: if you are dealing with key personnel in the Chinese company, you should have people of equal or higher status from your company dealing with them i.e. you would never have an assistant from your company trying to deal with a manager from there’s.

Also, Chinese business etiquette incorporates the idea of the person that you are negotiating with ‘saving face’. This concept really isn’t as difficult to follow as it might first appear. Confucianism includes the goal of social harmony, and that comes into the business culture of China, too. As you might know, if you have ever had to negotiate with people before, the whole process can become a little heated (not always in a bad way) and that can lead to some disharmony between the two parties.

China business culture allows for negotiating, but, in order to keep the harmony, the representatives of the company may give you a ‘no’ to your offer when they want to take back control of the negotiations, even though they may still be prepared to negotiate with you further.

Of course, if your business plan is to import things from a Chinese company, then knowing a bit about the business culture of China may be helpful to you in your dealings with them, but it may not be quite as necessary as it would be if you were looking to start exporting to China, or have a branch setup over there.

When it comes to China business culture, remember that you should have people of an equal standing working together; they will often operate in smaller groups, so as to make it easier to keep the harmony between everyone; negotiations may take longer because solving things too quickly could involve some element of ‘losing face’; and having a quick read of the works of Sun Tzu could be useful, but not essential, when trying to get to grips with Chinese business etiquette.

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One of the most important Chinese business protocol techniques of doing business in China is to provide a lasting impression. With the perfect appearance you will undoubtably impress all those that you are meeting with. Conservative suits should be worn by the men in the meeting and women should avoid wearing short sleeved blouses and high heels. Neutral colors are the most beneficial for those in a business environment due to the fact that it provides a professional feel. Revealing clothing should be avoided due to the fact that the men within the Chinese business industry find it offensive to reveal too much skin during a business meeting.

Another Chinese business protocol is to provide an ample amount of manners and to have impeccable behavior. It is advised that you refrain from using large hand movements due to the fact that these movements can be distracting to the host of the business meeting. Pointing should be avoided as well, if you must gesture towards a particular object you should do so with an open palm. It is also imperative to remember that giving gifts is generally a sensitive subject and so gift giving should be avoided, if you deem a gift to be required, provide a banquet rather than a luxury good.

Communicating effectively is another Chinese business protocol that should be taken into consideration prior to or during a meeting. When you introduce yourself, use formal titles, and when you are referring to an individual, use formal titles as well. Being punctual is of the utmost importance due to the fact that punctuality is seen as a vital implementation to the business industry and it is also advised that you create appointments prior to meeting with your contacts.

With the use of the aforementioned Chinese business protocol tips, you will undoubtably be able to conduct business in China easily and efficiently. Knowing that the first impression is of the utmost importance and that intellectual behavior is admired as well, your business efforts in China will succeed far more.

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