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1. Negotiation objective

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

The goal of negotiation is not the signed agreement and unexpected circumstances are resolved through the partnership; the contract is more a sign of the meaning to do business together than a legally binding document. Trust is the basis of the agreement and the fact that you have signed an agreement does not actually imply that the deal is closed; it means that an alliance has been recognised.

2. Negotiation attitude and communication approach

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

The communication style is expressed by using titles, following procedure and being highly respectful and alert in conversation. Always start with an official approach, using first names and relaxed style is dangerous and can be viewed offensive and interpreted as an act of disrespect.

When you negotiate, listen carefully to ascertain the exact meaning. It is unusual to be told a direct no and you will more likely hear "it is difficult" which in fact does mean you must not pursue it. Do not anticipate to receive direct clear replies, because you will try to resolve a situation that "is difficult" when in fact it can't be resolved.

3. Time perception

A lot of time is spent in developing a relationship which is a sign of respect and which is supposed to be reciprocated. For Westerners time is valuable and the Chinese usually exploit this fact. Preparation is therefore vital, create options and let your counterpart know that they are is not the only one who can walk away from the table. Do not forget that "tomorrow" or "next week" often doesn't literally imply the following day or week; but this could mean "in the future".

4. Negotiation approach

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

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

Your whole team is advised to attend the meetings and it's very important to arrange for someone with a rank of authority within your organisation to make the introductions and to accompany 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 always negotiate in a team. It is not always clear who the leader is and who has complete authority to decide matters. 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 lead 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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