123 School Work

Bargaining and NegotiationNegotiating with Chinese

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  Bargaining and Negotiation
  Negotiating with Chinese
  
  Table of Content
  The Confucian Legacy     3
  Chinese Business Culture:     4
  Collectivism - The importance of harmony & network (guanxi)     4
  Hierarchy - the order of things     5
  Indirect communication - A penchant for ambiguity and tact     6
  The value of face     6
  Chinese Negotiation Style     6
  The Negotiation Process     8
  Prior to Negotiation     8
  Formal Negotiations     9
  First Offer - the Chinese rarely make first offer     10
  Length - It often takes twice as long     10
  First General Principles and then the Details     11
  Post-Negotiation     11
  Recommendations     12
  Conclusion     13
  Bibliography     15
  
  
  
  
  
  
  
  
  
  
  
  
  In his visit to China in the early 1970's, the late President Nixon of the United States described China's potential as a "Sleeping giant to be awakened". The sleeping giant has since been awakened by the Open Door Policy introduced in 1979. Twenty-two years later, China finds itself the fastest growing economy in the world with many foreign companies competing at its door to get into the market. The ability to negotiate successfully with the Chinese is an important part of success in the Chinese market.
  
  Many Western companies have found negotiating a contract with the Chinese challenging and difficult. Their difficulties come from both the Chinese and themselves. The Chinese negotiators often use distinctively different negotiation strategies and styles that western companies are unfamiliar with. These include using indirect hint to pass information, a price consciousness, a tendency towards much longer negotiation time and unwillingness to commit. Western people have contributed their own share to the problem of negotiating with the Chinese. Western people are criticized for their lack of understanding of the Chinese business environment, lack of preparation and their unwillingness to develop long-term relationship with the Chinese...