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HOW TO DO BUSINESS
NEGOTIATIONS WITH CHINESE
COMPANIES
For additional information about Business with China
please visit www.China-Business-Connect.com
www.China-Business-Connect.com
Negotiating with Chinese Companies is crucial especially in this era
where more buyers are sourcing for various merchandise directly from
Chinese manufacturers.
In business, negotiation is never that easy, but it can prove to be very
hard especially when you have to deal with a foreign culture. As much
as so many things are negotiable in China you are guaranteed better
results if you know how to deal with the manufacturers.
The more information you have concerning the culture backgrounds,
positions, pressures, etc about your business associate in China the
better you can use that information as a negotiating tool to get what
you want.
2
www.China-Business-Connect.com
ONE OF THE THINGS THAT YOU NEED TO
DO THAT WILL HELP IN NEGOTIATING
WITH CHINESE COMPANIES IS RESEARCH.
3
www.China-Business-Connect.com
The Chinese manufacturers are very clever.
They clearly know everything that you as the buyer need to know about
their products and if you are not adequately prepared, they can use this
against you.
Just before you embark into real life negotiations try to use the most
trusted buyer-to-buyer websites in the e-market for market reviews on
a particular product you wish to order.
This will help you to have clear-cut details on the products you wish to
buy and therefore eliminate the chances of miscommunication with
your Chinese counterpart.
4
www.China-Business-Connect.com
When Negotiating With Chinese Suppliers it is good advice that you
stick to the contract agreement.
Bear in your mind that Chinese manufacturers love to build up solid and
lasting business relationships even after the trading contract has long
been signed. The reason is that Chinese business contracts are just a
platform for future negotiations.
Most importantly to the Chinese business community, business
negotiations is just a part of relationship culture process in China that is
commonly referred to as “guanxi” that is translated as “if you scratch
my back, I might scratch yours”. Try to give your partners fair prices on
products as opposed to get lower prices on goods.
5
www.China-Business-Connect.com
Technical behavior is another thing to consider when negotiating With
Chinese suppliers.
Many multinational companies in China tend to have a high rating of
credibility and reputation than their small and medium sized
counterparts. They also use resources to invest in R&D something,
which makes these suppliers more acceptable in the negotiation desk.
Most of the Chinese companies have really opened up to the new
opportunities offered by the ICT industry, something that helps them to
look for more innovative ideas even from among the small industries.
Negotiations methods of the southern China are different from
northern China.
6
www.China-Business-Connect.com
The other most important thing you have to know when Negotiating
with Chinese Companies is the social behavior.
Fact is, it harder to lie to a friend than a stranger. Social status plays an
important role in business negotiations in China. The higher up you are
as far as social status is concerned the higher chances you have to get a
favorable deal in the negotiations desk.
Because of many Chinese businesses adoption of the western
negotiation patterns of business, the need for personal relationships is
slowly diminishing. As a foreign business negotiator, you have to have
exceptional interpersonal skills and understand the value of trust.
7
For additional information about Business with China
please visit www.China-Business-Connect.com

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How to do business negotiations with chinese companies

  • 1. HOW TO DO BUSINESS NEGOTIATIONS WITH CHINESE COMPANIES For additional information about Business with China please visit www.China-Business-Connect.com
  • 2. www.China-Business-Connect.com Negotiating with Chinese Companies is crucial especially in this era where more buyers are sourcing for various merchandise directly from Chinese manufacturers. In business, negotiation is never that easy, but it can prove to be very hard especially when you have to deal with a foreign culture. As much as so many things are negotiable in China you are guaranteed better results if you know how to deal with the manufacturers. The more information you have concerning the culture backgrounds, positions, pressures, etc about your business associate in China the better you can use that information as a negotiating tool to get what you want. 2
  • 3. www.China-Business-Connect.com ONE OF THE THINGS THAT YOU NEED TO DO THAT WILL HELP IN NEGOTIATING WITH CHINESE COMPANIES IS RESEARCH. 3
  • 4. www.China-Business-Connect.com The Chinese manufacturers are very clever. They clearly know everything that you as the buyer need to know about their products and if you are not adequately prepared, they can use this against you. Just before you embark into real life negotiations try to use the most trusted buyer-to-buyer websites in the e-market for market reviews on a particular product you wish to order. This will help you to have clear-cut details on the products you wish to buy and therefore eliminate the chances of miscommunication with your Chinese counterpart. 4
  • 5. www.China-Business-Connect.com When Negotiating With Chinese Suppliers it is good advice that you stick to the contract agreement. Bear in your mind that Chinese manufacturers love to build up solid and lasting business relationships even after the trading contract has long been signed. The reason is that Chinese business contracts are just a platform for future negotiations. Most importantly to the Chinese business community, business negotiations is just a part of relationship culture process in China that is commonly referred to as “guanxi” that is translated as “if you scratch my back, I might scratch yours”. Try to give your partners fair prices on products as opposed to get lower prices on goods. 5
  • 6. www.China-Business-Connect.com Technical behavior is another thing to consider when negotiating With Chinese suppliers. Many multinational companies in China tend to have a high rating of credibility and reputation than their small and medium sized counterparts. They also use resources to invest in R&D something, which makes these suppliers more acceptable in the negotiation desk. Most of the Chinese companies have really opened up to the new opportunities offered by the ICT industry, something that helps them to look for more innovative ideas even from among the small industries. Negotiations methods of the southern China are different from northern China. 6
  • 7. www.China-Business-Connect.com The other most important thing you have to know when Negotiating with Chinese Companies is the social behavior. Fact is, it harder to lie to a friend than a stranger. Social status plays an important role in business negotiations in China. The higher up you are as far as social status is concerned the higher chances you have to get a favorable deal in the negotiations desk. Because of many Chinese businesses adoption of the western negotiation patterns of business, the need for personal relationships is slowly diminishing. As a foreign business negotiator, you have to have exceptional interpersonal skills and understand the value of trust. 7
  • 8. For additional information about Business with China please visit www.China-Business-Connect.com