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
Table of Contents
1 Introduction
2 Negotiation
2 a Introduction phase
2 b Starting the negotiation
2 c Signing the contract
3 Conclusion
Objectives and Topics
This paper aims to guide German managers through the nuances of business negotiations in China by identifying critical cross-cultural differences between the German and Chinese business environments. It seeks to provide actionable insights to avoid conflicts, foster productive relationships, and successfully navigate the negotiation process.
- Intercultural communication styles and directness vs. indirectness
- The significance of relationship building and trust in Chinese business culture
- Ascriptive vs. achievement-oriented status perceptions
- Cultural etiquette regarding punctuality, seating, and business card exchange
- Understanding the varying perceptions of contracts and binding agreements
Excerpt from the Book
2 a Introduction phase
For Chinese punctuality is very important. Being punctual is a way to show respect, sincerity and concern. When being early don’t hesitate to let your host know. Being early is also showing respect. When shaking hands, using both hands, is a way to warmly welcome the guests. Shake hands first with the most important person, as China according to Fons Trompenaars is a quite ascriptive culture. That means that in China status is ascribed to people on the basis of age, class, gender, education and position not on their achievement. As result of this when entering the conference room the Chinese top executives will enter the room first, followed by the rest of the group. During the introduction phase it is very important to exchange business cards. This will help you to know who is the most important partner in the negotiation. Usually Chinese use both hands to hand over their business cards.
When you entered the room where the negotiation will be held you will find name cards with titles on the table. In China it is very important who is sitting where. Usually the host will sit in the middle of the table. At the host’s right side, the second important person will be seated. This behavior is also showing the ascriptive way in which the Chinese normally act.
Summary of Chapters
1 Introduction: This chapter introduces the growing importance of trade between Germany and China and outlines the theoretical framework based on Trompenaars' cultural dimensions to compare both nations.
2 Negotiation: This section breaks down the negotiation process into three essential stages: the initial meeting, the commencement of formal discussions, and the finalization of agreements.
3 Conclusion: The final chapter synthesizes findings and offers practical advice for German negotiators, emphasizing patience, the importance of seniority, and relationship management.
Keywords
Negotiation, China, Germany, Cross-cultural management, Ascriptive culture, Achievement-oriented, Particularism, Universalism, Business etiquette, Relationship building, Trust, Contract, Harmony, Face, Punctuality
Frequently Asked Questions
What is the primary focus of this paper?
The paper focuses on providing guidance to German managers regarding the cultural differences they encounter when conducting business negotiations in China.
What are the central thematic fields covered?
The core themes include communication styles, cultural etiquette, status perception, the role of relationships in business, and the differing interpretations of contracts.
What is the main objective of the research?
The primary objective is to equip German negotiators with the necessary knowledge to avoid misunderstandings and conflicts while fostering successful long-term partnerships with Chinese counterparts.
Which scientific method is employed?
The paper utilizes a comparative approach, applying Fons Trompenaars' cultural dimensions to analyze and contrast German and Chinese negotiation behaviors.
What topics are discussed in the main body?
The main body systematically explores the negotiation process, divided into the introduction phase, the initiation of negotiations, and the signing of contracts.
Which keywords characterize this work?
Key terms include cross-cultural management, particularism, universalism, face, harmony, ascriptive culture, and relationship building.
How does the Chinese perspective on contracts differ from the German one?
In China, a contract is often viewed as the beginning of a flexible relationship that may change, whereas in Germany, contracts are considered binding and relatively static.
Why is "saving face" significant in Chinese negotiations?
Saving face is vital for maintaining social harmony; therefore, indirect communication is preferred to avoid causing embarrassment or loss of status for the negotiation partner.
- Quote paper
- Jan Schnack (Author), 2002, How to make a deal in China - A guide for German negotiators, Munich, GRIN Verlag, https://www.grin.com/document/7990
