Model of Business Negotiation in China

Business negotiation techniques differ all around the world, but no major arena is quite like China for western businesses. The more holistic approach to the deal that the Chinese business people use on a regular basis, is much more involved than the more technical approach that is preferred by most of the western business community. While negotiations in China still rely on the technical information, as the western business negotiations do, they also take into consideration Guanxi, renqing, and mianzi, which can slow the pace of the negotiations in comparison. By getting more involved and integrating the personal lives of the negotiators, there is a believe and development of a new layer of trust. The biggest variation in business negotiation in China as compared to North America or Europe, is that they view the signing of the contract as merely a component in negotiations, and not the conclusion. Realizing these differences and working to understand why and how the Chinese business people tend to negotiate, can help your business to be more success in the approach and process as a whole.