Konfucijski institut Ekonomske fakultete v Ljubljani Confucius Institute descendants Selling to China & Business Negotiation Kong Zi ( )

Konfucijski institut Ekonomske fakultete v Ljubljani

Confucius Institute 孔子学院

descendants

Selling to China & Business Negotiation

Kong Zi(孔子 )



Some General Points About Chinese Psychology(Distinctiveness of the Chinese psychology)

Ingidenious of Chinese psychology One’s self and relatedness between the people (self Confucian thought is essentially relational – China, Japan, Korea

and not in Hindu, Dao and Buddhist writings – Ho, Peng, Lai, Chan 2011) Role relationship (McAuley, Bond&Kashima 2002) Conceptualization of face ( Ting- Toomey 1988, Hwang & Han 2010) Guanxi relationship (Hwang & Han 2010) Relationship theory (Kwan, Bond & Singelis 1977) Socially oriented achivement orientation (Hau 2010, Yu 1966) East Asians think holistically while North Americans and Europeans think

analytically.

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Practical Business Observations While Selling and Negotiations in China

Differences between Chinese and western business communication

Fast developing, skillful local business communityEstablished and demanding »middle class« consumerHard driving Chinese buyerSpecific characteristics of the Chinese business

psychology

3



PRAGMATISM

Legality

EthicMorality

Pragmatism is one of the Chinese business approach.Legality goes first, the ethic & morality questions comes

second.

4



Eagerness To FightA commercial talk is not a dancing party but a

fight.

5



Superior & Inferior

Face and thin facePrivate conversation better than group discussion

Personal talking better than public challenging

Informal contacting better than formal criticism

6



A complicated way of thinkingChinese modesty

Just so so, no detailsOverpraise

A complicated way of thinkingA wish of balance and connection of all elements: economic, social, company rules & hierarchy, and unknown elements Long speech with hiden information

7



The equality in the negotiation team

Every delegation member has a full right express opinion or ask question

8



CuriosityAnnoying habit

Asking how much you paid for thingsWhy?

CuriosityCare about you

A strong curiosity for your meeting materialsSolution for dissemination:

Leave the paper or CD rom in the table between the first break.

9



Optimistic approachChinese manager is born optimist

Keeping the smile

Exploring the smallest, hopeless possibilities

Calmly saying”Don’t worry, I know what to do.”

10



Perserverance furious competion in a 1.3 billion inhabitants country:

Daily fight for a bus seat, a place in a restaurantNo body want to stop in the city traffic

Fight for entrances to good universitiesJobs in famous companies and governmentFight like thousands of people crossing a single-log bridge at the same time

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One step at the time

Great Wall is made by hundred thousands chunks of stoneA Chinese manager begins to solve the complicated problem by putting down the first stone.A Chinese saying: “One step, one footprint”. (一步一个脚印 )

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Middleman

At first:no third party involved

A middleman (conciliator) comes in

At last: smile with handshakeSummary: It’s much more polite to invite a third party especially if some differences arise.

A Middleman

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Breaking the opponent team

Soft-way approachA discussion between the lunchSecretary’s small verbal flirtGerneral manager’s praising for your good job.

Harder approachA direct callA face to face discussionWarningPromising reward

Summary:don’t step into the trap14



ElusionsSudden disappearance means the answer is not

readyUsual excuses for escape:

Visiting deadly ill motherJust got a heart attackAn urgent business trip to some exotic countryOther old commercial tricks

Summary:Wait until the last two minutes.

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Company and personal sensibilityThe serious punishment to the traitor

Summary:Don’t touch the bottom line at very first timeTake care of some furious reactions

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Discount on discountThe important impetus: fight for the priceThe price should be only lowerTiming is very important-do not decide too fastSome concessional additions:

Air tickets, free hotels, sightseeingsSummary:

Be tough during all negotiation days

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Uncertainty till the endControl all hopes and dreams until the final end.Every change, modification, cancellation or

misunderstanding is allowed

When is the end?The signing of contact? (Maybe)Contract with the big, red chop? (Maybe)The final end is the money seated in your account.

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Bosses in the backA group of negotiating Chinese managers are not

including the real boss:

Accountant

Department leader

Vice director

Who is the real boss?Some one appears in the end.

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Psychological games

Non-verbal signs of distractionYawingLoud talking and smilingPointing to the foreignerSuffling the paperHaving a napCleaning the throat

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Guanxi (Connections)Connections is a huge resource covers every field

CommerceEconomicsAdministrationPolitics

Connections in China are more complex and less visibleSummary:

Weaving your connection net before any step

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Making friends on the banquet

Taiji Soup Beijing Roasting Duck

Ganbei (Cheers)

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Thanks for attention!Prepared by Mr. Ljubomir Ulaga

Designed by Mr. Kent Wu

Q & A

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Documents

Konfucijski institut Ekonomske fakultete v Ljubljani Confucius Institute descendants Selling to China & Business Negotiation Kong Zi ( )