2. Ease In Carefully

Think you can leap in, sign a great deal, and move on? Not likely. You need to get the feel of negotiating in China. You have to get to know your partners, to determine who can be trusted and where you need to be careful. You need to make your first mistakes on low-value and low-priority deals. This can be good advice in any case, but it's especially important if you don't have much experience in the treacherous waters of inter-cultural negotiations. Try out a couple of low-risk transactions before plunging into the deep end.

You need to rein in your western tendency to jump in, cut to the chase, and score a deal cleanly and quickly. The Chinese don't quite work that way. Nonetheless, they've learned how to deal with we cowboys with money to burn, barging in to do serious business on the spot. We'll get the runaround, as befitting someone who isn't serious enough to develop a trusting relationship first. In their view – some barbarian who won't take the time to build relationships deserves to be outfoxed.

At the same time, this isn't universally the case. If you're dealing in Beijing or Shanghai or any other highly developed centre, they're more familiar with western styles of business. In fact, they're quite sophisticated. They're a little more willing to play the game your way, and make some compromises to western impatience in order to move the process along efficiently. In the less developed regions, they're often a little more steeped in traditional Chinese ways. But they both know how to deal with your eagerness and get what they want. In either case, learn the culture first, and take your time.

3. Work with the Right People

Here's where a good knowledge of Chinese relationship structures is important. Certain people are authorized to make a deal, while others are only intermediaries – and you may not find them in familiar positions. In your first set of meetings, perhaps even for a long time, you may be dealing only with the intermediaries. They won't tell you that at the start, and you'll be frustrated when you find out that nobody has the authority to cut a deal. This may be offensive in the west, but it's proper protocol in the east. You'll probably be escorted to several meetings and banquets, and the key officials will be present at some of them, but you won't really know who's who until late in the game. This is where you need your diplomatic skills, to show your respect for Chinese traditional ways at the same time as you badger them to get the proper authorities at the table.

Actually, the intermediaries do have considerable importance. They're there to do the grunt work of finding out what's possible, and to iron out the initial proposals, so that their superiors need only deal with the final decisions. So treat them with respect, or you'll never get to see the key players. At the same time, be careful to determine if they really are properly connected to do the job. You may end up with some peripheral agent – who cites great experience in dealing with western business, but who really has little stature – because they want to feel you out before they have to deal with you directly. Beware if they send you a westerner who is really little more than an English teacher with grand aspirations. They don't trust him any more than you do, but he'll keep you at bay until they're ready to move.

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