Tricks of the Trade

Chinese negotiators are shrewd and use a wide variety of bargaining tactics. The following are just a few of the more common stratagems…

Controlling the Meeting Place and Schedule

The Chinese know that foreigners who have travelled all the way to China will be reluctant to journey home empty-handed. Putting pressure on foreigners just before their scheduled return can often bring useful benefits to the Chinese side.

Threatening to do Business Elsewhere

Foreign negotiators may be pressured into making concessions when the Chinese side threatens to approach rival firms if their demands are not met.

Using Friendship to Extract Concessions

Once both sides have met, the Chinese side may remind the foreigners that true friends would reach an agreement of maximum mutual benefit. Make sure that the benefit is genuinely mutual and not just one-way.

Showing Anger

Despite the Confucian aversion to displays of anger, the Chinese side may put on a display of calculated anger to put pressure on the foreign party, who may be afraid of losing the contract.

Attrition

Chinese negotiators are patient and can stretch out discussions in order to wear their interlocutors down. Excessive hospitality the evening before discussions can be another variation on this theme.