China is a top U.S trade partner, and of late, it has diversified the industrial economy to provide the United States with multiple opportunities for investment and partnership. China is arguably the world’s leading marketplace, and it is now a force to note. A trip to China exposes you to lengthy contract negotiations among other business opportunities. You can watch skyscrapers and spend money on a couple of luxury brands.
If you are looking forward to interacting with the Chinese, here are essential negotiating tips when interacting with the Chinese.
Know Your Position
When negotiating with the Chinese anywhere, the first thing you need is to know your position. You need to spend quality time getting your negotiating team ready. Make them know any limitations and constraints behind the deal you are about to enter. Ensure that your negotiating team understands all the sensitive matters of your deal and all the key points that you can use as your strengths. Always find an amicable way of finding a solution.
Bring an Experienced Team in China
Nothing will make a business deal fail to work that bringing a team in China that doesn’t know all critical details involved. Understand that overly aggressive and hyper-direct tactics can be quite harmful to business. You need to have a team that is well accustomed to how to engage their Chinese counterparts. Always ensure you have a translator to make communication smooth and fast. Take heed that no irrelevant newcomers who enter you deal at an advanced position and jeopardize your deal.
Be Prepared for Anything
As compared to the west, China doesn’t have a clear set of the formally provided structure of doing business and reaching agreements. The west is laden with things such as agendas and expected outcomes, but in China, such doesn’t exist. Negotiations in China are just long drifting conversations covering different aspects on a broad set of topics. Even if there is a laid down agenda, don’t always assume that discussions will strictly follow these agenda.
Have a Translator
You need to have a translator who is familiar with your subject for discussion. If it is your first encounter with China, you may find yourself struggling to communicate. In China, you are pretty assured that the young generation speaks English, but the older generation is not familiar with English. If you want to get into negotiations with the older generation, you will most certainly need a translator. You do not need to have an expert. All you need is someone who can understand the translations and can convey the message without altering.
Align Payment Terms
While making negotiations with the Chinese, you need to align all the payment terms. One typical characteristic of Chinese is that they don’t like milestone payments as they want to ensure that you stick around up to the end of the project. Ensure that you have a viable project management team that can schedule up the duration of the project, together with a clear outline of payment terms.