Negotiating in China

The Middle East and African regions have considered China an important trade and business partner. Today, China accounts for a growing percentage of these regions’ trade and investments that cooperation between these countries has intensified to ensure mutual benefits. Demand from African countries, especially the largest ones such as Kenya, Egypt, Angola, Nigeria and South Africa (KEANS), has simply become even more important to Chinese firms, according to a report by a leading financial institution. China is seen as the right partner – providing much-needed products and infusing huge capital to support emerging sectors in the Middle East and North African region.

With the rising number of face-to-face negotiations between China and businessmen from the Middle East and African regions, there is much to be learned to make the most out of these negotiations and one-on-one meetings. In major trade shows, services such as translation of documents and interpreters are readily available to assist delegations and ensure the smooth conclusion of transactions.
But how do you negotiate with Chinese businessmen? Dr. Vincent F. Yip, PhD MBA, Management Consultant, and Lecturer, Stanford Continuing Studies ( Palo Alto, California), offered some practical tips in the three stages of before-during-after negotiation in China. The most of important consideration is maintaining “guanxi” and “face.” Any foreign businessman willingto do business with a Chinese partner must take into account some basic tips. The very first step is to come well prepared for the negotiation. There is a need to do background research on the company, the personalities involved using Chinese sources. China has no Moody’s, Better Business Bureau or any trustworthy rating agencies to provide an overview on the operations of the company or its track record. The best way to do this is to find several local Chinese references or sources to find out the track record of a Chinese company you would like to do business with.

If you are meeting outside the trade show surrounding, be sure to pick a neutral large city or location in China to meet the Chinese representative. Arrange to have a competent team to help you with the negotiation. Pick a good team according to age, seniority, fluency in both Chinese and your foreign language and professionalism. Be prepared to discuss with your Chinese team what you need, what you would like to achieve in your meeting and how soon you would like to conclude your business. Also, try to be consistent from meeting to meeting, not changing the rules or your requirements, unless necessary.

Be realistic in your expectations. There are instances when you are meeting with a Chinese partner that may seem to fall short of your expectations – unless these companies are large companies already selling internationally. Be very clear inrelaying to the Chinese partner what you need. If the partner is not about willing to provide, be prepared to compromise and ensure that such terms and conditions are properly documented. Make sure that your translator/negotiator is able to take down all notes of your discussions and have him read back what were discussed with the Chinese partner to ensure that everything is clear.

To ensure proper relationship with your Chinese partner, be sensitive of some issues that may affect his impression of you. Guanxi is a lot of effort but the most important trick is to remember national and cultural sensitivities. For instance, try to avoid discussions on human rights and Tibet. Avoid cracking jokes on political issues or jokNike Air Max 90 Candy Drip