Online Webinar – Recorded – August 24, 2006
Activity Type: Education – Online or Digital Media .75 PDU – Free
Provider: Talks At Google  (Google Talks Website @googletalks)

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There is NO Chinese word for negotiation. Tan pan translates as “discussion or making a judgment”

This workshop will touch on the highlights of the differences in negotiation style of American and Chinese negotiators.

The presenter Terry Hird recommends the book  Kiss, Bow, or Shake Hands: Asia – How to Do Business in 12 Asian Countries and the others in the series as excellent negotiating resources.

The Kiss Bow or Shake Hands is a book series by Terri Morrison and includes other titles such as  Kiss, Bow, Or Shake Hands: The Bestselling Guide to Doing Business in More Than 60 Countries and Kiss, Bow, or Shake Hands, Sales and Marketing: The Essential Cultural Guide―From Presentations and Promotions to Communicating and Closing  as well as several others.

There is no Chinese word for negotiation. Tan pan translates “discussion or making a judgment”. In Chinese a negotiation means a dialogue with a beginning, middle, and no end.

Based upon one of many courses and seminars, Negotiation-International teaches corporations “going global”, you will hear about the inherent sources of difficulty in these negotiations.

Different opening moves Different negotiation processes Different negotiation principles Face and guanxi (relationship) Tips for success to minimize misunderstandings and pave the way for success Bu da bu Xiang Shi: “Without a fight you do not know each other.”

Presentation Notes For Your Convenience:

Values lead to Norms lead to Behaviour.

China stats

• 1/4 of world population (1.5 billion people)
• rapid economic growth
• increasing openness
• growing consumer market
• expanding business opportunities

What is a negotiation?

• Americans
  • Process driven with defined goal
  • Deal/Contract
• Chinese
  • Exchange of information, dialogue
  • No demand for a clear conclusion
  • China is a high context society:
    • “read my lips”,
    • “its not the words, its the meaning behind the words”.
    • Americans (especially men) are bad context readers.
• Americans are looking for a contract, Chinese is looking for a relationship.
• Consensus plays are central role. Why is that contract good for Chinese society?

Confucian system:

• Ethics and morals.
• Loyalty has high value.
• “The concept of Face”:
  • You have to earn it,
  • You don’t wanna loose it.
  • You should try to build up the face of the other side in negotiations.

Decision making:

• Chinese
  • The Balance Sheet
  • Typical Chinese tactic is to give you favours
    • and then expect you to bring the balance sheet back to even again.
  • You need to re balance constantly.
  • The word “No”
    • Avoid it!
  • To be truly powerful in china is to avoid the responsibility for your decisions.
• Americans:
  • Do you understand?
    • Puts shame on the listener
    • Chinese: Are we being clear?
  • Americans:
    • What?
    • Chinese: Could you please repeat that as we did not understand?
  • Americans: We cannot do that. Chinese: That may be to difficult for us to do.
  • Americans:
    • Whats the problem? You said you Fedex’d us the papers but we did not get them.
    • Chinese: There must be a problem with the courier because we did not receive the papers.
  • Americans see negotiations as a conflict: the less fights needed, the better. Chinese expect to push and to be pushed back.
  • Americans: time is money.
    • Chinese: A “getting to know you” process needs time.

A single trip visa is a waste of money.

Tactics

1. Americans: Informal.
   1. Chinese: Formal
2. Americans: Full authority. Propose desired solutions first.
   1. Chinese: Limited authority. Explains desired goals first.
3. Americans: Aggressive.
   1. Chinese: Questioning.
   2. Chinese are listening: “What interest you?” and then the think how they can use it against you.
4. Americans: Impatient – make a good deal.
   1. Chinese: enduring, searching for a relationship.
5. Chinese proverb: Chicken said to pig: “Let’s make breakfast. I supply the eggs and you supply the bacon!”
6. Chinese often demand something that is completely unacceptable to see if you are dumb enough to accept it. It’s like an intelligence test.
7. Americans: Openess/Honesty, Strength, Confidence, Efficiency
   1. Chinese: Face, Respect, Flexibility, Patience
8. Framing: put the picture in a nice frame.
   1. To Chinese, the frame should be a “good for china” frame.
9. Chinese love to host you, so they can control the events.
   1. They want you to think that they are more important than you.
   2. Do you really want to give up the opportunity to make business with us?
10. Contracts mean nothing.
    1. They always find way to break them.
    2. And they always do
11. “Bu da bu Xiang Shi” => “Without a fight you do not know each other.”
12. Find the right people
13. The decision will be made, but not by someone in the room.
14. Avoid to much talking:
    1. The Chinese will listen and use all they find out against you.
15. Do not talk fast!
16. Think beyond short term!
17. Be sensitive to timing
18. Turn negatives into positives
    1. Show it is good for china
19. Be flexible
20. Avoid Becoming Indebted!
21. Build on successes and failures
22. Minimize your “no”s
23. Control your emotions
24. Increase your importance, status
    1. but, be yourself – You are not Chinese!
    2. the government will most likely be involved.

Presenter: Terry Hird, UC Berkeley, Founder of Negotiation-International, has 25+ years of international business and negotiation under his belt. Terry’s work as a business owner, consultant and educator has brought him into contact with top business, organizations and learning institutions around the world. He has done business and negotiation in more than 50 countries throughout Asia, Europe, The Middle East, South America, and Africa.  Learn more about Terry & Negotiation-International.

Click To View On YouTube:
Comparing American & Chinese Negotiation Styles

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