The Chinese negotiation

China is home to 20 per cent of the world’s population and the world’s fastest growing economy. It is a country that is constantly growing and for that is why many foreign companies are interested in settling there to start a business or to open new horizons.

But, how can businesses establish in China? How to negotiate with Chinese people?

Negotiate and agree with Chinese partners is a constant challenge. It’s not only the language but also the culture. You cannot get to do business in China or associate with them without knowing their culture deeply before it. It is not only based on a business relationship, business in China is a conducted between friends, so, you have to make an effort to get to know them on a more personal level. Chinese people do not want to ‘lose face’, and they also do not want to cause you to ‘lose face’. Here there is not a ‘winner’ or a ‘loser’.

Another thing is that they will rarely disagree with you in public, and will instead emphasize friendly relations and cooperation.

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Doing business in China is a ‘marathon’, not a ‘sprint’: Negotiations are likely to take place over a longer period of time. You do not negotiate by telephone, is a face to face meeting.

The key of any Chinese negotiation tactic is to understand what you want and understand in detail what you are prepared to give them for this. You have to know your bottom line and be patient and practice the “cold shower” approach to decision making.


And the most important is to assemble a capable Chinese team and enlist the support of third parties, most importantly the government, which often could be difficult to deal with it, because of its industrial policy and its regulations.


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