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Case Study example - Style of Chinese Negotiation

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Case Study
Pages 14 (3514 words)
The adoption of Open Door Policy by People's Republic of China has resulted in a significant economic growth. This rapid growth in the economy has opened up the chances for the foreign investors to invest in Chinese companies. Sino-foreign joint-ventures are the privileged forms of business organization that attract most western investments…

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In forming such joint venture arrangements, the challenges the Chinese business negotiations pose is so great that there had been instances that many a number of business deals between China and other western countries including USA had failed because of poor negotiations. As John Graham and Mark Lam (2003) see this is because often "Americans see Chinese negotiators as inefficient, indirect and even dishonest, while the Chinese see American negotiators as aggressive, impersonal and excitable". Differences in the management style and problems in negotiations have deep cultural origins. Despite these hindrances, it is possible to win the negotiations with Chinese businessmen, provided a clear understanding of the social, cultural and economic aspects of the negotiation with Chinese entrepreneurs is evolved. This paper presents an in-depth analysis of the intricacies of Chinese negotiations including the cultural background of such negotiations. The paper also deals with the influence of Confucian traits like hierarchy, harmony and faces on communication, characteristics of communication and the Chinese perception of negotiation. ...
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