Conducting Business in China: Negotiating and Building Effective Relationships

Since the 1980's, international business has been on the rise. Negotiating and building effective relationships is vital for the success of Westerners conducting business in China. BACKGROUND As with most Asians, where ritual and personal relationships are a vital part of the smooth functioning of society, Chinese business people do not rush into discussion or negotiations. The Chinese want to get acquainted before they do business. They also want to extend hospitality to demonstrate their …

…and interact differently, because their minds were programmed differently. Western companies doing business in China have observed that the Chinese have a set of distinctive patters on communication, interaction, negotiation and decision making that is different from westerners. The difficulties experienced by western firms in negotiating with the Chinese are legendary. While cultural differences can intensify difficulties in negotiation, it is by no means the case that all difficulties are necessarily attributed to cultural differences.