China Business Negotiation: 11 Useful Tips

There's a lot that goes into China business negotiations. Here are 11 useful tips to increase the probability of succeeding when negotiating with the Chinese:

1. Be patient and spend time building relations. In the meantime one should not forget how fast things can shift in China. Be prepared to act quickly if opportunity knocks.
2. Take the Chinese bargaining culture into consideration. Make sure you always have something more to bring to the table.
3. Always remember the 'home' advantage. Invite your Chinese partners to your country or in-country corporate offices.
4. Focus on the informal negotiations that go on all the time. Do not use up all of your energy on what’s going on during formal negotiations. Remember that most things can be negotiated and re-negotiated.
5. Use social settings to gather information. Do not spend all of your time worrying about all the potential landmines one can stomp on when it comes to Chinese etiquette.
6. Double-check all the information you receive with your own Chinese connections. It is not always true when someone says that "this is impossible in China".
7. Look at the contract as an agreement of intention that needs continuous follow up.
8. Make sure you are communicating with the right person – the one who makes the decisions. If you fail to do so you might risk that while you think you are negotiating, you are actually just giving out information.
9. Keep in mind the Chinese notion of giving face. Do not embarrass your Chinese relations. Focus on giving face.
10. Keep in mind that your temper is an efficient tool when you feel the need to draw your line.
11. Before you do business in China you need to get at least one Chinese contact that you trust 100% and who is willing to help you.

Negotiations in China is a tough thing to master. But with enough practice and a little preparation, you'll do fine. I hope the above tips help you out on your next trip to China.