Page 76 - Synergy see page 60
P. 76
IT Focus
Doing Business with China
Leveraging
cultural differences
for creating
successful
outcomes in
business
By: Adil Sarkari, MBA, J.P., Sydney, Australia
China is one country in the world that request your opposite counterparts to This underlying conceptof thrift is reflected
has shown a strong economic growth arrange a reliable Zhongjian Ren to avoid in how Chinese negotiators haggle over
in Asia and more and more western distrust and suspicions. One can never price. Their initial price, counteroffers, and
businesses have taken advantage of that form a business relationship without negotiating tactics of silence and patience
situation by entering the Chinese market. earning and building trust with chinese can seem unreasonable, but Western
However, negotiating with the Chinese businessmen. negotiators should expect these tactics.
counterpart is an art and not knowing
and understanding the Chinese customs, (3) Shehui Dengji (7) Mianzi
their culture and history could be one
of the biggest hurdles in carrying out (Social Status) (Social Capital)
negotiations. Hence it is important that Confucius always said that Face or social capital defines
this art be mastered prior to entering the etiquette of social status is very a person’s place in their social
Chinese market. important and one needs to show respect network and is the measure
for that status. Not doing so shows that you of their reputation, social standing, or
There are eight elements of Chinese don’t care and therefore a lack of respect for social worth. Embarrassment or loss of
negotiations.Without proper understanding that person. So don't let this happen. composure can reduce or take away ones
of these eight elements, a negotiation social standing. So it is very important not
could become frustrating and lead to many (4) Renjie Hexie to cause a negotiator to lose face or to show
misunderstandings. anger, frustration, or aggression at the
(Interpersonal Harmony) negotiation table.
Let's take a look at these eight elements. It is said, “a man without a
smile should not open a shop” (8) Chiku Nailao
(1) Guanxi and “sweet temper and friendliness produce
money” are some of the Chinese sayings (Relentlessness)
(Personal Connections) upon which pleasant relationships are built This element relates to the Chinese work
The term Guanxi means an between two negotiating parties, so Renjie ethic where patience and relentlessness are
intricate web of personal Hexie is important. viewed as more important than talent and
and social relationship that exists between as the keys to success.
the parties who do business in China. (5) Zhengti Guannian
Hence it is very important to have a proper
understanding of Guanxi. Also the chinese (Holistic Thinking)
businessmen believe in the old saying, ‘It Although Westerners tend to
is not only what you know, but also whom think sequentially, and prefer to
you know’. negotiate one issue at a time,
Chinese negotiators discuss all the issues
(2) Zhongjian Ren simultaneously, so nothing is settled until
everything is settled.
(The Intermediary)
In business dealings with (6) Jiejian
Chinese businesses, it is
imperative that either you appoint or (Thrift)
Chinese people save much
more than Westerners do.
76 SynergyZ December, 2014
