Tips about Negotiations with Chinese Companies

Before you negotiate with Chinese companies, knowing what is considered good manners and respecting their partners is particularly important. Communication etiquette is always a feature which differentiated one culture from another, it’s especially important in China.

 

1). Must-do preparation steps

Before you start any negotiations, you should prepare in advance. The first important stage is your outfit. The Chinese consider that the only proper way to dress up for a business meeting is to wear an elegant black or dark outfit, which applies for both women and men. Having your own business card is another must: not only does it facilitate further contact, but it also is an important element of the ritual. – You should have a sufficient number of business cards – if you run out of them, it will be considered a faux pas. Your business card must include your name and surname, job title and your company name. It is recommended that business cards be printed double sided, with the English version on one side and Chinese on the other, as English is not widely spoken there. A business card prepared this way will let the Chinese party identify his/her interlocutor’s place in the social hierarchy.

 

2). Get to know your interlocutor

One of the biggest faux pas you may make at a business meeting is “humiliating” your interlocutor, namely saying something or behaving in a way which could suggest that he/she holds a lower social position than he actually does. In order to avoid this kind of situations, there are special recommendations which transform a business meeting into a ritual where every step has a symbolic meaning. A business meeting may start with a normal handshake though we should remember that not all Chinese like this way of greeting: a nod or a bow is more natural. Nevertheless, the best thing you can do is leave the initiative to the other party. After the meeting commences, you should introduce yourself using the information printed on the business card. Then the Chinese party does the same and it is crucial to remember all his/her particulars. If your interlocutor holds a high-ranking position in the company, e.g. a director, you should address him/her by his/her job title. Moreover, in business contacts you should always call your interlocutor by his/her surname. Using first names is out of the question.

 

3). Business cards and gifts

After the introduction, we move on to the ritual of business cards exchange. Once you get one, you need to study it carefully while holding it in both hands. – If you do not read the business card or if you put it into your pocket (especially a back trouser pocket), it will be taken as a very serious offense. During a business meeting, especially at its end, you may receive or give a gift (a bottle of good cognac is a good example of an appreciated gift). It is advisable not to unpack the gift in the presence of the person who gave it, you should do it later. It is also better not to give the gift in the presence of third parties.

 

4). Restraint in negotiations

During the negotiation itself, you should follow some basic rules of behaving towards the Chinese. You need to be punctual and very polite (behavior such as touching your interlocutor or pointing at something with your finger is unacceptable). A very serious faux pas which may result in ending the negotiations is criticizing the other party, their project or proposals. If the negotiations are held between groups, then the group members may not be critical of the position of their team leader. When negotiating with the Chinese, there is no room for being expressive. – More often than not the Chinese speak ambiguously, they are not very emotional and the result of the negotiations may remain unknown until the end of the process. You should also remember that in China an oral agreement is more binding than a written one. After signing the documents, the Chinese party may suggest introducing additional amendments.