Western businesses who are negotiating with Chinese corporations may face many challenges, These begin from the initiation and continuation of the negotiations to the establishment of long-lasting relationships based upon mutual trust that range from bargaining and drafting agreements to the securing of their implementation. Chinese negotiators can be at once warm hosts and friends and tough bargainers. A unique group of Chinese cultural elements all add to the complexities of Sino-foreign business negotiations and can make the process tiresome and protracted. For these reasons, Chinese and western negotiators often harbor mutually unfavorable perceptions. Western negotiators need to get used to the indirect Chinese manner and realize that it is not deceptive, but just different. While Westerners are naturally direct, Chinese negotiators are more polite, at least on the surface (Graham, and Lam 4-5).

This can of course bring up serious issues of tension and trust. This is caused by not understanding the elements of the Chinese negotiating which include: personal connections, the use of an intermediary, the importance of social status, social harmony, holistic thinking, thrift, allowing the other side to save face and patience. Executives who understand these qualities and apply them consistently throughout the negotiation process will find that tension and trust are reduced considerably. The trust that is built up will pay off in terms of a long-term business relationship (Lee, Kam-non, Yang and Graham 624 -- 637).

Chinese business negotiations are heavily influenced by the philosophies of Confucius and Lao Tzu with their core values of collectivism, honor, respect, obedience and harmonious relationships. Due to the negative history of China and its past humiliation at the feet of Westerners, Chinese tend to be very hard in negotiations with foreigners. This history interweaves in a complex fashion that puzzles many Westerners, but is critical to understand. For those who do, trust is established with their Chinese contemporaries across the table. After all, given their circumstances, they are simply being pragmatic. When studied and appreciated...

Unfortunately, Western management has really often been its very own worst enemy in China. It is very often a lack of focus brought on by an addiction to instantaneous gratification, as well as being a simple matter of a lack of focus. If they do not understand the cultural nuances of China, they will fail in negotiating contracts that are advantageous to them. While this may seem simple, westerners constantly fail in the process because they are not able to step out of their world view and put themselves in the position of those on the other side. The multi-layered approach has made the Chinese competitive in world business markets. This Yin-Yang and Confucian methodology balances out extremes and maps out a very pragmatic middle path that brings flexibility to the negotiation process as well as to the end product. Western negotiators will have to adopt this approach if they hope to succeed in the era of globalization in which we find ourselves. If this approach is not adopted, the Western negotiator will not be on a par with their Chinese contemporaries.
Works Cited

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Lee, Kam-hon, Guang Yang, and John L. Graham. "Tension and Trust in International

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Sebenius, James K., and Cheng (Jason) Qian. "Cultural Notes on Chinese Negotiating

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