This time in China Business Opportunities, we are going to talk about business negotiations in China.

You'll find it beneficial to bring your own interpreter, if possible, to help you understand the subtleties of everything being said (or not said) during meetings. Remember to speak in short, simple, and sentences free of jargon and slang. Speak slowly, so that people will be able to understand everything you say. You will be surprised, sometimes even their interpretors find it hard to translate your words if you speak at normal speed.

Except for those who had recieved western education, Chinese businesspeople largely rely on subjective feelings and personal experiences in forming opinions and solving problems. Empirical evidence and other objective facts will be accepted only if they do not contradict one's feelings.

In Chinese business culture, the collectivist way of thinking prevails, even in sectors experimenting with free enterprise. During negotiation, you will find your partners often steer away from talk to you and start to discuss among themselves

“Saving face” is an important concept in Chinese culture. A person's reputation and social standing rests on this concept. Causing embarrassment or loss of composure, even unintentionally, can be disastrous for business negotiations.

The Chinese are very keen about exchanging business cards, so be sure to bring plenty of them. Preferably, print one side in English and the other in Chinese and include your title on your business card, especially if you have the seniority to make decisions. In Chinese business culture, the objective of exchanging business cards is to determine who is the decision-makers on your side. If your company is the oldest or largest in your country, or has another prestigious distinction, ensure that this is stated on your card. It's an asset to have your business cards printed in gold ink (the fonts only, not the whole card). In Chinese business culture, gold is the colour of prestige, prosperity.

Present your card with two hands, and ensure that the Chinese side is facing the recipient.
When receiving a business card, pretend to examine it carefully for a few moments; then, carefully place it into your card case or on the table. Not reading a business card that has been presented to you, or stuffing it directly into your back pocket, is considered impolite and an insult to the person giving you the business card.

In accordance with Chinese business protocol, people are expected to enter the meeting room in hierarchical order. For example, the Chinese will assume that the first foreigner to enter the room is head of the delegation. Since there is such a strong emphasis on hierarchy in Chinese business culture, ensure that you bring a senior member of your organization to lead the negotiations on your behalf. The Chinese will do the same. Only the senior members of your group are expected to lead the discussion. Interruptions of any kind from subordinates are considered shocking by the Chinese.

In Chinese culture, modesty is a virtue. Exaggerated claims are regarded with suspicion and, in most instances, dispised upon.

Chinese will not directly say “no” to you. Answers such as “perhaps”, “I'm not sure”, “I'll think about it”, or “We'll see” usually suggest a “no.”

Chinese tend to extend negotiations well beyond the official deadline in order to gain advantage. Even on the final day of your visit, they may try to renegotiate everything. Be patient, show little emotion, and calmly accept that delays will occur. Moreover, do not mention deadlines.
At the end of a meeting, you are expected to leave before your Chinese counterparts.
You may have to make several trips to China to achieve your objectives. Chinese businesspeople prefer to establish a strong relationship before closing a deal. Even after the contract is signed, the Chinese will often continue to press for a better deal.

Next time, we will talk about business entertainments in China.