Negotiating Chinese style is not always as easy as it seems.
A friend of mine who is an American who works in Guangzhou told me that he may need to start to take some anger management classes after all his negotiating in China. I told him that I wanted to know where the classes were held as I would be happy to sign up along with him. The truth is that in China negotiating is tough, it takes a lot of patience, self control and just plain endurance.
First the tea is poured. I don’t even drink the tea, so I take the cup and put it aside. We start on the small talk, weather, family, life and just about anything. About this time the cigarettes from the factory get lite up. There is no sense of there being a non smoking zone, so smoke gets blown in your face. I sit and try to move away from the smoke and not complain but keep a smile on my face of “I am so happy to be here today.”
At this point at least 45 minutes since we have walked in the door have past and we have not even started to talk about anything important. The room is filled with smoke and all the while we need to be sure to keep a smile on our faces. Then slowly the complaining starts. It can range from whole host of things but it is anything from labor being so hard to get, to supplies increasing in price to just about anything you can think about. The list can go on and on. We smile and tell them how the complaint does not matter or how we understand BUT….. And around and around we will go on this, the same complaints, our giving the same reasons but using different words or techniques each time we give them. This could go on for 1 to 2 hours. Finally sometime after my lungs are black from inhaling the smoke, my face is sore from putting on that fake smile we get the point while we are really there and what we need to talk about.
From an outsider all this can seem like a pointless exercise. I mean after all isn’t time money? Why can’t we get to the point of the conversation? I ask myself that question many times.
Here are some things to remember about negotiations Asian Style:
1. Negotiations Asian Style is a Skill. This requires a skill, that I find few foreigners really have. In the first place to really negotiate effectively you need to speak and under the language and culture. As a foreigner you may think you have won, but in reality you have not. This I have found is best to be done by Chinese to Chinese or by Asian to Asian. As a foreigner, you will get a lot more done by sitting and listening instead of trying to control the negotiating.
2. Shouting Does Not Mean Anger – Chinese shout when they talk. Chinese is just a loud language and noise is used to emphasis. So if you are sitting there not understanding a thing and you hear shouting, it does not mean anger. Shouting or loudness is used a lot, especially when there is negotitating going on.
3. Don’t Rush &ndash- This is harder to do than say, but sit back relax. Do not look like you are in hurry but act like you have all the time in the world, especially if you want to get your way in the negotiations. Take your time and work with the rythum, don’t try to break it.
4. Expect to Compromise –In fact in truth most Chinese would prefer to compromise with a problem than to go to court. Expect that there will be some compromise, so have an idea of this compromise ahead of time.
5. Expect Complaints –There will be complaining. It is the nature of the negotiation and do not take it personally. But find a way to weed through the complaints as some will be justified and many will not be.