Art of negotiations with Chinese suppliers

Chinese people are skilled dealmakers with their own strategy, subterfuges and tricks.

Since ancient times Chinese warriors had been famous by their war strategy. The art of warfare and war stratagems are presented in the most famous historical novel “Romance of the Three Kingdoms” which over the centuries was the desk book for Chinese people and gave a big influence on their mentality.

Till nowadays this strategic approach has remained for different things.

There are several tricks that people are using while negotiations.

Never say NO

Most probably at the beginning Chinese partner will accept all your proposals, but it’s not the reason to celebrate the victory. This is the feature of the culture: never refuse anything. But it doesn’t mean to agree.

This is the first thing you should learn before starting negotiations with your partner in China. To make sure it’s better to ask the same question in a different way, several times “Do you mean this…? Do you mean that…?”

Don’t ask monosyllabic questions that can be replied YES or NO.  Always ask detailed questions and as much as you can. Because Chinese people never give the complete information at once if you don’t ask them.

Play for time

Another very common strategy is an expectant management. If you go to visit the factory and meet partner on his territory be ready to spend hours there.

Before starting business meeting they try to make you tired in order not be much attentive to details: you might be treated for lunch (which can last two hours), they may let you to wait for some time in the meeting room without heating (and wintertime in the Central and North China is really cold), etc.

Also negotiations process is tedious. They repeat the same things several times, no direct questions and direct answers. You need to be patient and remember: the culture is like this, nothing to do.

Emphasizing the unimportant things

Often your Chinese partner may pay too much attention to the things, which seems to be unimportant. This is happening first to distract your attention from the main topic and second to use them as a negotiation tool. After long discussions your partner may concede and give up with that things (because in fact they are not important). But in return you also have to make concessions from your side (parity principle)

Excessive flattery

Probably you will hear that your Chinese speaking skills are perfect (although, you can say only “ni hao”), that they are impressed how beautiful, strong, etc. you are. On one hand they want to be polite and make you feel comfortable, on the other hand they want to take off your guard.

Keep an eye out when you will feel flattering to your side.

Quality. Price. Timeframe. Choose two of them

This well-known formula applies to the most of Chinese suppliers. You need to choose the priority. If time is important for you, be ready to spend additional money or accept lower quality. If price is the main point for you – you won’t be able to get the best quality in the shortest time. Always you need to choose.

Lack of transparency

There is an old Chinese proverb: “If water is too pure, fish cannot live or be around. Being too rigorous or clean make people away”. Chinese people don’t like transparency in business. Even Chinese low is ambiguous, same laws can be interpreted in different ways. You need to keep it in mind and learn how to read between lines.