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4. Negotiations in China

Sometimes, Chinese people talking to each other can appear too emotional, but this would be misleading. Chinese businesspeople usually speak in quiet, gentle tones, and conversations may include even short periods of silence. In China, the primary approach to negotiating is to employ distributive and contingency bargaining. While the buyer is in a superior position, both sides in a business deal own the responsibility to reach agreement. They expect long-term commitments from their business partners and will focus mostly on long-term benefits. Although the primary negotiation style is competitive the Chinese nevertheless value long-term relationships. Chinese negotiators may at times appear highly competitive or outright adversarial, fiercely bargaining for seemingly small gains. However, even when negotiating in a fairly direct and aggressive fashion, they ultimately maintain a long-term perspective and remain willing to compromise for the sake of the relationship. Keeping relationships intact throughout your negotiation is vital. It is best to remain calm, friendly, patient, and persistent, never taking anything personally. It will also be very important to maintain continuity in the objectives you pursue, the messages you deliver, and the people you include in the negotiation. Should a dispute arise at any stage of a negotiation, you may be able to reach resolution through emphasizing the benefits to both sides, remaining flexible and showing willingness to compromise. The Chinese are used to pursuing multiple actions and goals in parallel. When negotiating, they often take a holistic approach and may jump back and forth between topics rather than addressing them in sequential order. In multi-item negotiations, people may bargain and haggle over several aspects in parallel. It is not unusual for them to re-open a discussion over items that had already been agreed upon. In addition, they may take phone calls or interrupt meetings at critical points in a negotiation. While they may be doing some of this on purpose in order to confuse the other side, there are usually no bad intentions. Again, patience and persistence are vitally important. When the meeting is over, you should leave before your Chinese counterparts do.

Good luck with the negotiations!