Negotiation strategies differ throughout companies. In general, Chinese people prefer to establish relationships before considering negotiations. It is helpful to invite business people to dinner before making any negotiations and find out their particular strategy.

    Chinese people do not see negotiations as a final stage of association for a business. They may not prepare as seriously for a formal negotiation. They do not see a contract as important as an oral promise. They like to negotiate at a banquet over drinks versus a negotiation table in a meeting. Therefore, Westerners should be aware that statements made at a banquet could be taken as an agreement or disagreement to formal negotiations and the signing of a contract.

Chinese people prefer to negotiate through the shared interests obtained from the common feeling as opposed to a discussion of advantages, disadvantages, determination of financial outcomes, and responsibilities. The Chinese pay great attention to human feeling and dislike people who use their strength to pressure others or put on airs when negotiating

Activities beyond formal negotiation usually involve dinners and parties. If you receive an invitation to go to a banquet, to go sightseeing, or to a theater you should accept. Refusing these invitations could be seen as unfriendly and could seriously damage the relationship (Quanyu, Andrulis & Tong, 1994).

Leadership in Negotiation Tactics

Chinese negotiators are shrewd and use many tactics. Among them are:

· Controlling the schedule and location

· Threatening to do business elsewhere

· Using friendship as a way of gaining one-way concessions

· Showing anger

· Flattery (They may praise you on personal attributes or business style)

· Stamina (Chinese negotiators are patient and can stretch out the

    negotiations in order to wear you down)

    (www.globaltalentscout.com)

A number of tactics may be helpful for foreign negotiators dealing with Chinese:

For more information on negotiation strategies:

http://www.chinaunique.com/negotiat.htm

SYMBOLS/NORMS            ETHICS