The Art of Business - Negotiating With Chinese Businesses

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Because of the global nature of our economy, it has become important for businessmen all across the globe to learn how to deal with people of varying cultures. Every culture handles business transactions and negotiations differently. Since China is such a powerhouse on the world economic scene, it is essential to understand the strategy of the Chinese negotiation. This will make negotiating with Chinese companies far easier. Let's discuss a few strategies for negotiating with Chinese manufacturers.

Language is a common barrier in foreign trade. If you need to strike a deal with a Chinese manufacturer, then having a good translator can be the key to putting together a deal that will make everyone happy. Don't be afraid to review things at the end of the meeting. Do not take for granted that everyone understood clearly what was decided upon.

The Chinese prefer face-to-face meetings over video conferencing. If you have a big deal that needs to go down, invest in a trip to China. The personal touch will help you to seal a good deal. And don't expect the meetings to be short. Even issues that were resolved in previous negotiations will likely be on the table again.

When you are negotiating with Chinese manufacturers, be wary of the silences in conversation. It likely means that your demands cannot be met. If you do ask for unrealistic amounts of product, then you are likely to get an inferior product. This is a common strategy of the Chinese negotiation that helps to maintain their already low profit margins. This makes it important to shoot for quality in your negotiating with Chinese manufacturers, rather than just trying to scope out the cheapest price.

To ensure that the project is feasible, ask them to make some samples. You may not get exactly what you want on the spot, but at least you will be able to gauge whether or not the manufacturer can handle the project. This goes back to the Chinese attitude of not wanting to say no that results in awkward silences rather than a rejection of an offer.

Learn about the cost of the product to the manufacturer. Again, because of low profit margins, negotiating with Chinese companies is all about knowing the numbers. If you know what their material costs are and what they are paying in labor, then you can determine the rate you should be able to receive on production.

The Chinese are a highly efficient people, and it makes sense that many companies turn to them for manufacturing quality products at a low cost. But negotiating with Chinese manufacturers requires a lot of homework in order to be successful. Follow the advice you are finding, and strike a good deal.

Source: http://business-negotiation.blogspot.com/2012/07/art-of-business-negotiating-with.html

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