Developing Business Relationships in China

After spending time learning about the Chinese culture my next move would be to set up a meeting with my Chinese counterparts. My first step would be having a mutual friend/business partner make an introduction with my counterparts to make them feel more comfortable. Transparency would be key; I would make available as much information in advance as possible. The information would cover information about me and my organization, the topic(s) we would discuss, and general information. The information I provide would help set up the meeting with the correct individuals.

Usually, Chinese businessmen/businesswomen sometime wait to confirm a meeting within a few days. Providing as much documentation as possible would help. American and Chinese negotiators have unique methods to accomplish their ultimate goal of a deal. These methods differ, Chinese negotiators have a relationship orientated way of thinking whereas Americans are more information orientated

American negotiators exchange information directly and Chinese negotiators are more indirect, and finally, the style of the Chinese negotiators will differ from the American.

Chinese businesspeople listen more than they talk, which would result in non-Chinese negotiators assuming that the Chinese are delaying and playing games. They aren’t, first they think it’s rude to interrupt but also they are absorbing information about the personalities on the other side and the issues at hand. American negotiation tends to have more back-and-forth dialogue. American negotiations are direct and to the point of the negotiations. On the other side, Chinese businesspeople tend to have negotiations that are more like an exchange of information between the two parties in hopes of a long-term partnership.

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This is their formal process of getting to know the other side. Americans are inclined to be time-sensitive whereas Chinese negotiators are ready to negotiate for long periods. America is a low context society, which means we rely on verbal communication. China, on the other hand, does not utilize verbal as its main communication technique compared to America. China is a high-context society. They usually do say much to make it clear what they are meaning. As a result, when Chinese and American negotiators sit at the same negotiation table they must put an effort to understand the other culture.

When American negotiation with Chinese negotiators they must read their body language and when using verbal communication avoid saying the word no. Chinese negotiators could find it disrespectful and/or rude.   Mediation provides organizations or individuals the opportunity to resolve their issues before an independent/neutral third party the mediator. Mediation is less expensive, quicker, confidential, and provides better results. Lawsuits usually take months or even years, whereas mediation can take days or weeks. Mediations provide a sensible timeframe for solving disputes. Since lawsuits can require many lawyers for an extended period they can become expensive. Mediation is significantly less expensive in a shorter time. Lawsuits become public, but mediation is mostly confidential. That’s extremely important since it won’t result in any public records, transcripts, or evidence that would be revealed and lead to other issues. Some organizations decide on mediation for the sole purpose of confidentially. Finally, since we don’t have a true winner or loser in mediation, the results have better outcomes.

In mediation, we won’t have an admission of fault and the outcome is agreed upon by both sides which results in more pleased parties. Patience empathy, trustworthiness, and nonjudgmental are all key attributes of an ideal mediator. A mediator would lead the two sides into the following 6 stages of mediation: o Stage 1: Mediator Opening Statement: The mediator introduces everyone and describes the goals of the mediation and motivates both sides to cooperate. o Stage 2: silent parties Opening Statements: Both sides in their own words will describe the issue at hand and suggest a resolution. At this stage when one is talking the other side stays silent. o Stage 3: Dialogue: Both parties will talk about the issue at hand and attempt to determine what the issue is. o Stage 4: Private Caucus: Both sides meet privately with the mediator to discuss their strengths and weaknesses of offer new suggestions o Stage 5: Negotiation: At this stage, the mediator will have both parties negotiate with each other. o Stage 6: Closure: This is the final stage of mediation. Main provisions will be added if both sides reached an agreement.