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Applying Negotiation Skills During The Five Step Process To Achieving Lucrative Deals In China

1. Negotiation objective

For many the objective of negotiation is a substantive result and material gain. In China the transaction is all about the relationship and there is no better method to succeed in doing business 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 unforeseen events are resolved through the partnership; the contract is more a sign of the intent 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 transaction is sealed; it means that an alliance has been established.

2. Negotiation attitude and communication approach

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

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

When you negotiate, listen carefully to ascertain the true 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 answers, because you will try to fix something that "is difficult" when in fact it can't be resolved.

3. Time perception

A lot of time is spent in building up 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 alternatives and let the otherside know that they are is not the only one who can walk away from the table. Bear in mind 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 collecting information.

Chinese negotiators are well versed in the art of positioning & framing, the complexities of pricing and the use of delays as a negotiation tactic. They have excellent 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 responsible or not and do not react with disrespect.

Your whole team is advised to attend the meetings and it's vital 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 seriously you view the negotiations.

5. Team based negotiations

The Chinese almost never negotiate unaccompanied. It is not always clear who the leader is and who has complete authority to decide issues. 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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