Did you know that the Chinese are not afraid of silence and will often wait for someone else to start a conversation or offer an idea. In China, it is common knowledge that "saving face" is more valued than getting what you want. Someone who breaks this rule might be seen as rude or difficult to work with by your supplier (or business partner).
This can make negotiating even more challenging because if one party walks away from negotiations, it's likely they're saving face rather than breaking off talks with no intention of coming back! To foster trust and maintain strong relationships between everyone involved in the long term. try some of these tips.
Bargaining Tactics Commonly Used By The Chinese
It is customary in China to use multiple business tactics. Familiarize yourself with these tactics and know how to negotiate around them. The Chinese are more comfortable negotiating once they see that you have already invested in their business, so it's up to the company to make sure this investment pays off!
Problems arise when companies invest without having negotiated first. These businesses feel pressured to give away anything just because "face" is on the line for them to be seen as "dishonest.” Ensure your negotiations happen at all phases of the deal with these suppliers, starting from before any contracts or conversations about pricing happens.
A Guangzhou Agent tip: Always Begin Negotiations With A Lower Price
In China, the buyer is expected to make an offer first for what they are willing to pay. Therefore, your strategy should start much lower than you expect your supplier will accept because it's likely that you can counteroffer no matter how high a dollar amount they propose their opening bid at.
Keep in mind, though, that if your business partner does not have respect for Westerners, then negotiating may not work out as well and could end up making them angry or difficult when dealing with you from now on.
Another Guangzhou Agent Tip: Read Through All Documents Before Signing Them
Don't sign any documents without reading them carefully because when negotiating with any company, it may be likely that they will try to put something in the contract that favors them. When dealing with Chinese suppliers, ensure that you are both on the same page about what has been agreed upon before signing anything and getting things finalized.
There are many different types of contracts and agreements in China that can be signed on paper or online; it's always important to read through the contract thoroughly before signing anything. In addition, it is a good idea to have an experienced Chinese business lawyer go over your company’s agreement with any potential suppliers.
Here at Guangzhou Agent we recommend that you Do Not Make Any Decisions Based On Emotion
When trying to negotiate with Chinese business partners, an important thing to remember is not to let emotions get involved. Always understand where you stand financially and make sure there's no chance of being taken advantage of. Negotiations with Chinese suppliers should not use emotion on your part. Calmness and politeness are crucial.
Don't let your emotions take over and jeopardize the business negotiations. Even if you're angry or frustrated, it's not a good idea to show these feelings because they might just get lost in translation and end up hurting the company more than helping. The best way to negotiate with someone from China is by being diplomatic. For more lessons you can read our blog or contact us directly via chat to learn more on how to utilize a China sourcing agent.