1. Negotiation objective

For many the objective of negotiation is a substantive result and material gain. In China the transaction is about the relationship and there is no other method to succeed in doing business than through a close partnership, so think about investing a lot of time in this pre-negotiation phase.

The goal of negotiation is not the signed contract and unexpected events are resolved through the partnership; the agreement is more a sign of the meaning to do business together than a legally binding record. Trust is the foundation of the contract and the fact that you have signed an agreement does not actually imply that the deal is closed; it means that a relationship has been established.

2. Negotiation approach and communication approach

The Chinese negotiation style is one of teamwork and problem solving whilst still focused on the bottom line.

The communication style is expressed by using titles, following protocol and being very respectful and alert in discussions. Always start with an official approach, using first names and relaxed style is risky and can be viewed offensive and viewed as an insult.

When you negotiate, read between the lines to determine the exact meaning. It is unusual to be told a direct no and you will more likely be told "it is difficult" which in fact does mean that you have no chance of success. Do not expect to receive direct clear responses, because you will try to resolve something that "is difficult" when in fact it can't be fixed.

3. Time perception

A lot of time is expended in building up a relationship which is a sign of respect and which is expected to be reciprocated. For Westerners time is valuable and the Chinese usually exploit this fact. Preparation is therefore vital, create options and let your counterpart know that they are is not the only party who can walk away from the deal. Do not forget that "tomorrow" or "next week" often doesn't literally imply the following day or week; but this could mean "in the future".

4. Negotiation style

What for most Westerners may seem to be innocent mingling is in fact their way of collecting information.

Chinese negotiators are competent in the art of positioning & framing, the intricacies of pricing and the use of delays as a negotiation tactic. They have good negotiation skills and will often use negotiation tactics to humiliate or shame their counterpart in order to create pressure and gain the advantage. Take the blame if a problem develops whether you are responsible or not and do not react with disrespect.

Your whole team is advised to attend the meetings and it's vital to arrange for someone with a position of authority within your business to make the introductions and to accompany you during meetings. Without visible official support, you will be delivering the wrong message about how genuinely you view the negotiations.

5. Team based negotiations

The Chinese almost never negotiate unaccompanied. It is not always clear who the leader is and who has complete authority to decide issues. Although decisions are made by consensus, there is normally one leading authority who may not be very involved during negotiations. Gain the attention of their lead negotiator and direct your most persuasive and logical arguments towards him. The rest of the team usually plays the role of an advisory body.