Negotiation Tactics & Strategy: Chinese Negotiators

By Biao Wang (MBA)

Camellia Universal Limited9 April 2011

Moscow, Russia

Camellia Universal Limited 2011

Introduction

Persistency, determination.

Efficient preparation and planning.

Good product knowledge.

Intelligence and good judgment.

It is essential for the Russian negotiation team to grasp knowledge of the Chinese style of negotiation and culture.

What Do you Need To Do Before The Negotiation

Carefully select the people who will be forming negotiating team.

Make all team members aware of cultural differences & have knowledge on the Chinese way of negotiating

Assign roles & responsibilities to each team member. Send information about the members of the Russian

negotiating team to the Chinese counterpart, and require same information back.

Make early contact with the government authority involved. Appoint an intermediary with Chinese connections,

experience and knowledge. Allow a generous budget & long time for getting to know

each other & gaining mutual trust.

During The Negotiation

Enter the meeting fully prepared and with your key points firmly in mind.

Talk over the entire contract with the Chinese side.

Provide presentation in both Russian and Chinese.

Be aware of diverse tactics.

Avoid making concessions at the beginning.

If and when the meeting starts ‘hotting up’, try to remain patient and calm.

Be aware of sensitive high technology information.

After The Negotiation

Be ready to answer the same questions and avoid aggression.

Keep legal and commercial technicalities to a minimum.

Be aware that they may re-negotiate.

The Dos & Dons When Negotiating in China

Do accept variety of opinions

Do find an intermediary with some kind of link with the Chinese

Do make long term strategic goals

Do pay attention to etiquette behaviours

Do be firm on your offer and build credibility

Do reserve certain margins when bidding

The Dos & Dons When Negotiating in China

Don’t be enemies on the table.

Don’t act individualistically.

Don’t get the deal done as soon as possible in order to be able to move on to the next stage.

Don’t think factors as individuals.

How To Hosting Chinese Negotiators In Russia

Hold a formal welcome dinner for the Chinese delegation, provide some gift when leaving.

Concern about their feelings. Do not talk about the business on the first day. Provide professional translator. Let the delegation inspect the factory. Be prepared to negotiate with the delegation when they

want to change some details on the agreement. Make the working and leisure ratio right. Arrange after work entertainment as well as sightseeing

of Russia.

Know The Tricks Of The Trade

Deciding where and when to meet.

Making you aware that other parties are interested.

Being friendly to encourage you to concede points.

Simulating anger or irritation.

Being abrasive

How to Play The Game Yourself

Be completely prepared.

Play off competitors.

Be willing to cut your losses and go home.

Cover every detail of a contract before you sign it.

Conclusion & Recommendation

A good negotiator in China must be able to win respect and confidence.

When negotiating with the Chinese negotiators, please remember if you know your enemies and know yourself, you can win a hundred battles without a single loss.

Questions & Answer Time