During the last years, the Chinese economy has gone through a rapid development with an impressive growth rate and increase in international trade. Norwegian companies are very much aware of the huge business potential China represents.
At the same time however, Norwegian managers and directors in China have experienced that it is not an easy task to do business in China. The Chinese are experienced negotiators who know how to cut corners at every turn.
- There is no need to be “Mr. Nice Guy” when negotiating in China. The Chinese are tough negotiators but they highly respect a counterpart who also knows the tricks of the trade, states Henning Kristoffersen.
Kristoffersen has, from his background as of a social anthropologist, studied negotiation tactics and business culture in China for years.
He has more than 20 years of experience working in China and with the Chinese. Altogether, he lived in Shanghai for 4 years subsequently managing the Nordic Centre at Fudan University and BI’s Liaison Office taking care of BI's part-time MBA programme.
The BI Norwegian School of Management China-expert has recently published his book ”Modern China” (“Det nye Kina” for the time being available in Norwegian only) that gives a practice-oriented introduction on how to do business in China, Chinese economy, culture and politics.
When it comes to doing business in China one is usually told one has to be patient. Things take time. At the same time there are few people returning from China with the impression that the Chinese work slowly.In the course of last 12 years more than 4000 buildings of more than 20 floors were raised in Shanghai.
- It’s hard to find similar examples of high-paced development elsewhere, states Kristoffersen
The Chinese market is rapidly changing and viable business-concepts have to be implemented quickly. Nobody knows this better than the Chinese.
Chinese etiquette and culture
According to Kristoffersen it is useful to know Chinese tradition and etiquette when doing business in China such as mastering your chopsticks, greeting people correctly with the use of business cards and knowing when – and how to give gifts.
-It shows that you are interested in Chinese culture, and this will be appreciated. Making mistakes however, is rarely fatal.Kristoffersen claims that most Chinese are very lenient when it comes to forgiving foreigners who sin against Chinese customs .
-It is potentially a big advantage to exhibit knowledge of Chinese etiquette, but there is a very small risk involved if one should make mistakes.
Negotiations in China
Kristoffersen has developed 11 useful tips to increase the probability of succeeding when negotiating with the Chinese:
1. Be patient and spend time building relations. In the meantime one should not forget how fast things can shift in China. Be prepared to to act quickly if opportunity knocks.
2. Take the Chinese bargaining culture into consideration. Make sure you always have something more to bring to the table.
3. Always remember the ‘home’ advantage. Invite your Chinese partners to your country.
4. Focus on the informal negotiations that go on all the time. Do not use up all of your energy on what’s goin on during for formal negotiations. Remember that most things can be negotiated and re-negotiated.
5. Use social settings to gather information. Do not spend all of your time worrying about all the potential landmines one can stomp on when it comes to Chinese etiquette.
6. Double-check all the information you receive with your own Chinese connections. It is not always true when someone says that “this is impossible in China”.
7. Look at the contract as an agreement of intention that needs continuous follow up.
8. Make sure you are communicating with the right person – the one who makes the decisions. If you fail to do so you might risk that while you think you are negotiating, you are actually just giving out information.
9. Keep in mind the Chinese notion of “Face”. Do not embarrass your Chinese relations. Focus on ”Giving face”
10. Keep in mind that your temper is an efficient tool when you feel the need to draw your line.
11. Before you do business in China you need to get at least one Chinese contact that you trust 100% and who is willing to help you.Reference:
Audun Farbrot | alfa
Mathematical confirmation: Rewiring financial networks reduces systemic risk
22.06.2017 | International Institute for Applied Systems Analysis (IIASA)
Frugal Innovations: when less is more
19.04.2017 | Fraunhofer-Institut für Arbeitswirtschaft und Organisation IAO
Spectrally narrow x-ray pulses may be “sharpened” by purely mechanical means. This sounds surprisingly, but a team of theoretical and experimental physicists developed and realized such a method. It is based on fast motions, precisely synchronized with the pulses, of a target interacting with the x-ray light. Thereby, photons are redistributed within the x-ray pulse to the desired spectral region.
A team of theoretical physicists from the MPI for Nuclear Physics (MPIK) in Heidelberg has developed a novel method to intensify the spectrally broad x-ray...
Physicists working with researcher Oriol Romero-Isart devised a new simple scheme to theoretically generate arbitrarily short and focused electromagnetic fields. This new tool could be used for precise sensing and in microscopy.
Microwaves, heat radiation, light and X-radiation are examples for electromagnetic waves. Many applications require to focus the electromagnetic fields to...
Strong light-matter coupling in these semiconducting tubes may hold the key to electrically pumped lasers
Light-matter quasi-particles can be generated electrically in semiconducting carbon nanotubes. Material scientists and physicists from Heidelberg University...
Fraunhofer IPA has developed a proximity sensor made from silicone and carbon nanotubes (CNT) which detects objects and determines their position. The materials and printing process used mean that the sensor is extremely flexible, economical and can be used for large surfaces. Industry and research partners can use and further develop this innovation straight away.
At first glance, the proximity sensor appears to be nothing special: a thin, elastic layer of silicone onto which black square surfaces are printed, but these...
3-D shape acquisition using water displacement as the shape sensor for the reconstruction of complex objects
A global team of computer scientists and engineers have developed an innovative technique that more completely reconstructs challenging 3D objects. An ancient...
26.07.2017 | Event News
21.07.2017 | Event News
19.07.2017 | Event News
28.07.2017 | Health and Medicine
28.07.2017 | Power and Electrical Engineering
28.07.2017 | Life Sciences