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Chinese Negotiation Style: What to Expect

I am in China for a short time, but I’ve already participated in several business negotiations with Chinese companies. I’ve noticed some distinct patterns in how the Chinese approach these meetings, and I thought I’d share my observations.

In China, the formal meeting you have in a conference room is just the beginning. The real negotiations often happen later, either in the director’s office over a traditional tea ceremony or during a friendly dinner. Every office I’ve visited has had a tea board, or «cha-ban.» Sometimes it’s in the meeting room, sometimes in the director’s office, and occasionally in both.

Unlike in the West, where negotiations are like a chess match with every move carefully planned, Chinese negotiations are about building understanding and trust. The Chinese prioritize creating a good relationship over «winning» the negotiation.

Negotiations here tend to be lengthy. The higher the stakes, the more sessions you’ll have. This can be confusing for newcomers who expect to get straight to business but find themselves chatting about seemingly trivial things, like different ice cream flavors (by the way, green pea ice cream is a thing here).

Chinese culture places great importance on gestures and etiquette. Offering tea or inviting someone to dinner is a sign of respect. You’ll also likely be offered a cigarette, often with a story about how special they are – maybe they just arrived from Japan, or they were delivered by a caravan from secret Chinese tobacco plantations.

Here are some key points to keep in mind when negotiating with Chinese suppliers:

— Smoking is allowed. — Negotiations are lengthy. — They often include tea drinking. — Many take place over dinner in restaurants. — The longer the negotiations, the more sessions there will be. — They start and end with courtesies and gifts. — Hierarchy matters: seniority in status and age is important. — Pay attention to non-verbal cues like gestures and facial expressions. — Discussions often include personal topics to build trust. — Decisions are made collectively, so multiple parties may need to be consulted. — Show respect and patience; avoid direct confrontation and criticism. — The focus is on building long-term relationships, not quick deals. — Pauses are common and used for internal discussions among Chinese partners. — Time delays are often used to get better terms. — Contracts and legal details get significant attention after verbal agreements.