{"id":94465,"date":"2023-11-15T14:02:50","date_gmt":"2023-11-15T13:02:50","guid":{"rendered":"https:\/\/www.KGM Strategy.com\/?p=94465"},"modified":"2024-09-16T10:34:00","modified_gmt":"2024-09-16T08:34:00","slug":"international-negotiations-cross-cultural-success","status":"publish","type":"post","link":"https:\/\/www.KGM Strategy.com\/en\/insights\/smi-13\/international-negotiations\/","title":{"rendered":"International Negotiations: Cross-cultural success"},"content":{"rendered":"

 <\/p>\n

In Germany, you absolutely must be over-punctual, in France, you definitely cannot talk business over a meal, and in England, you can offend your English counterparts by making demands that are too clearly formulated \u2013 these are all familiar clich\u00e9s. But is there really anything behind these stereotypes when it comes to international negotiations?\u00a0<\/strong><\/span><\/p><\/div>\n

Negotiations with people from other nations are part of everyday life in most procurement departments. Intercultural competence is especially important. Some of our expats report on their personal experience negotiating in their chosen home country.<\/p><\/div><\/div><\/div>\n

\n
\n
\n

<\/h2>\n <\/div>\n
\n
\n
\n
\n \n
\n \"\"\n <\/figure>\n <\/span>\n <\/div>\n <\/div>\n
\n

<\/h3>\n

Leave room for informal discussions and compromises<\/span><\/h3>\n

There is no uniform negotiation style in China. Instead, the industry, region, company size and international experience of the contact persons shape the way they deal with foreign procurement teams. However, there are a few basics: In my experience, the Chinese are open and direct in negotiations and know what they want. They are usually very entrepreneurial, want to

build good businesses and long-term relationships, and are willing to go the extra mile to do so. This makes them pleasant negotiating partners. Anyone negotiating in China should expect several rounds of negotiations, preferably face to face. A strict \u201cno\u201d is rare. However, if a question is avoided or not answered, it most likely means just that. In this case, do not press for an answer. At all costs, Europeans should avoid escalation. The issue of losing face is no longer as serious as it is often made out to be, but it is still culturally embedded. Showing respect is very important, even if you disagree.
\nOften, deals are only concluded after the official meeting, for example through a personal telephone conversation and a compromise between the parties. China trips should therefore be planned with some time between appointments to allow room for informal discussions. Negotiations with international stakeholders are different from negotiations between Chinese compatriots. However, if possible, expats should also seal a successful conclusion over dinner with a good rice liquor \u201cbaijiu\u201d.<\/span><\/p>\n

Christopher Gaede is a Project Manager at KGM Strategy in Cologne. As part of an extensive automotive project, he was in Shenyang for an extended period of time, where he worked with our Chinese project team and the client on site.<\/strong><\/span><\/h4>\n<\/div><\/div>