Graham and Lam (2003)

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Graham and Lam (2003) - The Chinese Negotiation

There are eight elements of Chinese culture which are relevant when doing business with them.

1. Guanxi (Personal connections)
2. Zhongjian Ren (The intermediary) - for foreigners it is best to have a Chinese intermediary, as the Chinese are more likely to respond to "one of them". This intermediary should have some personal connection with the people with who you are negotiating, such as a shared schooling, or home town
3. Shehui Dengi (Social status) - a foreign country should always send the highest ranking person possible to speak with the Chinese. They respect authority and will be insulted if a lower person is sent
4. Renji Hexie (Interpersonal harmony) - this can take months to build up before negotiations can start
5. Zhengti Guannian (Holistic thinking) - westerners think sequentially, while the Chinese think in a synchronic, holistic way.
6. Jiejian (Thrift) - the Chinese bargain hard, perhaps due to centuries of poverty and fighting off invaders
7. Mianzi (Face, or social capital) - a person's reputation and social prestige needs to be protected, through not showing emotions or not openly criticising others
8. Chiku Nailo (Endurance) - westerners like a short negotiation, whereas the Chinese will draw theirs out, such as repeating the same questions over and over. It is important for foreigners to show enduring patience and showing that they have researched into their counterparts' interests