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Cultural perspective on Chinese – European Negotiations. Verner D. Worm Professor of Chinese Business and Development Asia Research Centre Copenhagen Business School. Differential mode of Association in Chinese and western societies. - PowerPoint PPT Presentation
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Verner D. Worm
Professor of Chinese Business
and Development
Asia Research Centre
Copenhagen Business School
Differential mode of Association in Chinese and western societies
Western society is represented by straws collected to form a haystack,
Chinese society is represented by ripples flowing out from the splash of a rock thrown into the water (i.e. discrete categories of social relationships).
We see things differently, but don’t realize it
Ancient Greek Personal freedom
Analytical approach
Ancient China In-group harmony
Holistic approach
Yin Yang 阴阳
Ying-yang are classifications of relations. They were continually in flux, each growing out of the other. Any giving subject might be designated yin in one set of relations and yang in another.
Chinese traditional values and thinking mode
(Some people think more traditional than others) 1. The principle of contradictions
Opposing propositions may be simultaneously true
2. The principle of change Life experiences are unpredictable and in a
constant state of flux 3. The principle of Holism
All things in the universe are interconnected
Communication in negotiation Employ overseas Chinese for debriefing The Chinese hear the words – not the
context Read Chinese faces Emphasize what is in it for the Chinese
side Closed versus open communication style Firm flexibility
GOVERNMENT – Western companyChinese Government
Technology transfer More local content New Products R & D in China Inland production Export
Western Multinational Equity control Management control Cheap well-educated
labor force Tax reduction Relaxation of rules Local sales Management transfer
Pre-negotiation in China Learn about the Chinese counterpart Learn a few words Chinese Prepare slides in Chinese What is the negotiation history Build good relation to local government Prepare and bring gifts Decide on business standards
Negotiating Skills in China Holistic approach Understand Relationship building Become comfortable with ambiguity Be patient Do not be aggressive Be mindful of Chinese negotiating
stratagems
Negotiating Skills in China
Become comfortable with Chinese pragmatism
Adjust to Chinese time preferences Familiarize yourself with the bureaucracy Learn to work with Chinese people Learn to build trust Create win-win situations
A Danish and a Chinese account of learning through cross-cultural collaboration
The initial collaboration phase was characterized by many conflicts and many misunderstandings, some of them probably due to different understandings of work and work-life-balance, different approaches to management and people, and different communication styles and use of communication media.
A Danish and a Chinese account of learning cross-cultural collaboration The Dane and Chinese stress that they have come to
understand each other’s ways of thinking and acting to an extent that the conflicts have diminished. The Danes acknowledges that the Chinese has been his mentor and that he has learned the Dane not only about market conditions, but also about social relationships in China, including face issues.
The Dane expressed willingness to adapt to Chinese work habits to a certain extent, but he also had the ambition gradually to learn his subordinates to change their routines and reorient towards a more strategic thinking and planning.
Find ways - we are all human beings
Find something you like about the other culture I like Chinese persistence, frugality, diligence,
hospitality, friendliness etc. I like Chinese way of life, medicine, massage
acupuncture, food, film, hotels etc. I respect Chinese way of life (not going to
extremes), holistic approach, but I do not understand entirely
Verner Worm & Tianshu Liu, CBCI
Three generations Red generation (ideologically driven) 1949-
79 Green generation (materially oriented) 1979-
99 Yellow generation 2000 –
Attuned to international events Internet and mobile phone savvy Strong sense of national pride Willing to experiment with new flavours &
products
Cross-cultural cooperation between Europe and China
We can learn about its other’s culture or even better from each others culture, but it is difficult to understand the other party. Our values are fixed when we are 10 years old.
We can ignore cultural differences (culture is not important in communication. The others are wrong.) Will result in conflicts
Most of us are somewhere in between!!
Thank you!
Time for questions
Verner Worm & Tianshu Liu, CBCI