An american tries to expand into china regardless of what business you are in or where you operate, it is great employees that make a great company while hiring great employees can be a challenge anywhere, the process of recruiting, retaining and terminating employees is especially tricky in china. It is a process that does not end unless the relationship is severed this approach to negotiation is rooted in chinese cultural, historical, and practical considerations and exists throughout modern china it also differs greatly from the view that the negotiation ends when the contract is signed.
Five tips for negotiating contracts in china much has been written on how to approach contract negotiations but things are different when manufacturing in china many of the books and articles written serve more to perpetuate conventional wisdom than to offer a useful “how to” guide on the subject so before i get into the dos and don’ts.
Incorporation, tax, accounting & trade services throughout china, hong kong & singapore wwwklakogroupcom years ago when negotiating contracts in china, companies were often facing a lack of familiarity. Years ago when negotiating contracts in china, companies were often facing a lack of familiarity contract negotiation was a tedious affair with many matters being lost in a wide gap of cultural, language and legal microsoft word - dos and donts of negotiating and structuring contracts in china. American management in particular is most impatient in the bargaining process being too impatient to cut the dale the american manager will too easily offer concessions to sped up the deal and bring a conclusion the chinese(and asian) parties are far more patient and extremely aware of this negotiating weakness.
How to handle chinese negotiating tactics know how they view you american contracts, with their penalty clauses and rigid requirements, are not only insulting and arbitrary, but seem designed to undermine any kind of positive relationship our vast experience handling china-specific entity formation, contracts, intellectual property. In hupert’s post, entitled american negotiating culture – through the eyes of the chinese counterparty, hupert writes on how chinese companies see their american negotiating counterparts hupert has taught chinese negotiating tactics at nyu’s business school, conducted extensive research on the subject, and recently wrote a book on it, entitled, the fragile bridge: conflict management in chinese business. Negotiations, contracts and the chinese culture it is becoming imperative that executives understand how to negotiate and develop contracts in china how to manage a contract in china business credit january 2005 (5) graham, john l and mark lam the chinese negotiation harvard business review.
As such, negotiation in china is viewed as an ongoing, dynamic process that takes into account practical matters and context many chinese prefer this approach over creating contract-based absolutes, which many chinese perceive as the primary purpose of western-style negotiations.
Negotiating business deals in china will remain one of the most daunting and interesting challenges facing american executives during the next few decades indeed, we might have said the same thing back in 1789, when yankee clipper ships first plied the pearl river, passing hong kong on the way to canton (now guangzhou. In addition, the case’s unique contribution is in presenting cross-cultural negotiation from both perspectives, the american and the chinese the presentation of both perspectives is structured in the same way, facilitating a direct comparison.
In this article, we examine the characteristics prevalent in the negotiation styles of americans (usa) and chinese (china) although some argue that it is as difficult to identify the american negotiation style, several characteristics have been mentioned in different studies. There is a vast chasm between the american and chinese cultures regarding foundational philosophical assumptions, historical influences, economic systems, business strategies and tactics, and myriad business-related they use the legal system to enforce contracts in lieu of trust-based relationships chinese negotiations in china there.
China has a long and rich history that has shaped the minds, values, and beliefs of its people face, which refers to a person’s reputation, is a crucial factor in chinese negotiating style. Negotiating in china: the american way is not the only way, and the chinese person across from you is struggling just as hard as you are to successfully manage the yawning gap between your cultures. Negotiations, contracts and the chinese culture june 15, 2005 | scrc sme as manufacturing operations are relocated to china, it is becoming imperative that executives understand how to negotiate and develop contracts in china.