Creation of cross-cultural teams
Train employees for challenges of cross-cultural management
National negotiating style
The Chinese Negotiation
Negotiating in China: 10 rules for success http://www.forbes.com/sites/jackperkowski/2011/03/28/negotiating-in-china-10-rules-for-success/
pp. 163 note
However, china is also a difficult and risky market for western business communities to operate in. the surprises, disappointment, and frustration on the part of western business people are not strange. China is a special challenge: it is the world’s largest emerging market, largest communist bureaucracy and oldest culture. These unique features make china a unique case in international business that calls for special academic and managerial attention. Now that china has reached and agreement with the European union and United States of America about its membership in the world trade organization (WTO), the importance of china as a trade partner is going to increase further.
* What are the meaningful stages of the Sino-western business negotiation process? * What are the main contentious issues in the formal negotiation sessions? * How can we understand chinese negotiating style observed in various stages from the chinese culture point of view?
1, pre-negotiation (lobbing, presentation, informal discussion, and trust building) 2, formal negotiation (task-related exchange of information, persuasion, concession and agreement) 3, post-negotiation (implementation and new rounds of negotiations)
The Chinese show keen interests in getting to know the other party during these initial contacts. They try to ascertain whether or not the foreign firm has (1) the most advanced technology required for the project; (2) the willingness to sell or transfer it to the Chinese side by way of, for example, joint venture; and (3) the capacity of delivering the products on time. As one chinese negotiators explained: “our intention is to import the most advanced technology and to cooperate with large, world-famous foreign companies, because the life cycle of a technology is short. We pay even more attention to the supplier’s houjing(reserve strength) for continuous technological development
lobbying: lobbing before the chinese government authorities is one of the most important marketing activities facing foreign firms that want to sell large industrial projects in chinese key industries like telecommunications. Foreign firms must convince the chinese that they have cutting-edge technologies that suit chinese government’s priorities, that they have long-term commitment to the chinese market, and that they are financially strong. They must present a highly reliable image before the chinese, making them feel safe to do business with them. The chinese said that they liked to do business with “big mountain” like Ericesson that they could trust and rely on in the long term.
Presentation: giving attractive and reliable presentations to let potential chinese partners know the company, products and negotiating team members, is an important step toward formal negotiation sessions. Presentations aim to convince the chinese of the sincerity of the company in doing...