How to make a deal in China - A guide for German negotiators

Term Paper , 2002 , 8 Pages , Grade: 1,0 (A)

Business economics - Business Management, Corporate Governance

Since the opening of the People′s Republic of China in 19781, China has become a more and more important business partner for Germany. Today China is the second biggest Asian trade partner of Germany. In the year 2000 the trade between China and Germany increased by 34 %.2 That is why more and more managers from Germany go to China for business negotiations. "Global managers spend more than 50 percent of their time negotiating."3

In this paper I am going to explain the differences how negotiations are conducted in China and Germany and what German managers involved in cross-cultural negotiations with the Chinese should bear in mind in order to avoid conflicts and misunderstandings. I assume that both, the Chinese and the Germans have not been trained in intercultural management before joining the negotiation.
Fons Trompenaars describes the German culture as universalistic, collectivistic, diffuse and achievement-oriented, whereas he characterizes the Chinese culture as particularistic, collectivistic, very diffuse and ascriptive.

In this paper I will divide the negotiation process into three stages and explain the cultural dimensions involved.

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1 Chinanah, www.chinanah.com/forument001.htm
2 Bundeswirtschaftsministerium, www.wirtschaftsministerium.de
3 Adler, Nancy, p. 191

Inhaltsverzeichnis (Table of Contents)

• 1 Introduction
• 2 Negotiation
  • 2 a Introduction phase
  • 2 b Starting the negotiation
  • 2 c Signing the contract
• 3 Conclusion
• 4 Bibliography

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This paper explores the differences in negotiation styles between China and Germany, providing guidance for German managers engaging in cross-cultural negotiations with Chinese counterparts. It aims to help German managers avoid conflicts and misunderstandings by understanding the cultural dimensions involved.

• Cultural differences in negotiation styles between China and Germany
• The importance of understanding cultural dimensions in negotiation
• The role of trust and relationship building in Chinese negotiation
• The importance of face and harmony in Chinese culture
• The impact of cultural differences on contract negotiation

Zusammenfassung der Kapitel (Chapter Summaries)

• 1 Introduction: This chapter introduces the growing importance of China as a business partner for Germany and highlights the increasing frequency of German managers engaging in negotiations with Chinese counterparts. It emphasizes the significance of understanding cultural differences to avoid misunderstandings and conflicts.
• 2 Negotiation: This chapter delves into the three stages of negotiation, examining the cultural dimensions involved in each stage. It highlights the importance of punctuality, the use of business cards, seating arrangements, and the role of small talk in the introduction phase. It then explores the differences in negotiation styles, particularly regarding directness, relationship building, and the preparation and interpretation of contracts.

Schlüsselwörter (Keywords)

Cross-cultural negotiations, cultural dimensions, China, Germany, negotiation styles, trust, face, harmony, contract negotiation, particularistic, universalistic, collectivistic, achievement-oriented, ascriptive, directness, indirectness, relationship building, consensus.

• College: Furtwangen University (Institute for Economics)
• Course: Managing Cultural Diversities
• Grade: 1,0 (A)
• Author: Jan Schnack (Author)
• Publication Year: 2002
• Pages: 8
• Catalog Number: V7990
• ISBN (eBook): 9783638150804
• ISBN (Book): 9783656497448
• Language: English
• Tags: China, Business, Culture, MCD, Chinese, Managing, Cultural, Diversity, Guide