On Negotiation with International Businessmen - business etiquette,cultural differences & intercultural communicati

1. On Negotiation with International Businessmen- business etiquette,cultural differences & intercultural communication WANG Guo-An (Andrew) Professor of International Trade Vice Director, International Affairs Office Zhejiang Gongshang University, China Mobile:86-36-0051-6079 86-571-28877313 (office) Fax: 86-571-28877322 28877312  28008050 E-mail: International@mail.zjgsu.edu.cn Alternative e-mail: tradelaw@hzcnc.com www.zjgsu.edu.cn/english/eindex.phphttp://econet.zjgsu.edu.cn/andrew.wang/index2.htm

2. 1.Direct approach and indirect approach The Chinese and Japanese dislike doing business with strangers; it’s helpful to be introduced properly by an intermediary known to both sides. But Americans like to adopt a direct approach. Alternatively, in any culture, if you make an independent initial approach, you should provide as much information as possible about your company and what you hope to accomplish.

3. 2. Greetings Chinese: Where are you going? Have you had a meal? Japanese: Americans: Hi, what’s up? 3.Telephone conversation Could/Would…? Who are you?X Who is speaking? This is Andrew speaking. Do not hang up the receiver until your customer/superior has hung up.

4. 4. Introduction by yourself or by someone else By yourself: Institution (full name), department, rank or position and name By someone else: on social occasions: female host In international interactions: someone with the same occupation, protocol personnel or someone with the highest position Name cards: Chinese/traditional Chinese characters, English, with not more than two ranks or positions, different name cards on different occasions, no home phone number, no scratching.

5. 4. Introduction by yourself or by someone else How to get name cards: By offering your name card, by saying that can I exchange my name card with you or how can I get in touch with ? Examine others’ name cards carefully to show respect. Offer your name cards with two hands. Privacy: No questions regarding one’s income, age, marital status, health/constitution, personal experience, religious belief and voting intention, etc..

6. Addressing people administrative title professional/academic title Mr., Miss, Ms. Intimate/informal Address: given/first name, eg. Andrew/Andy, James/Jim, Robert/Rob 5. Gifts Functions:showing show esteem or gratitude , as souvenirs, promotion of one’s culture, enterprise’s image and national features, marking occasions Taboos: religion, cultures, not too expensive Open and examine the gift with appreciation before the guest, giving or receiving gifts wit both hands.

7. 6. Meals or banquets Money: Who pays the bill? Go Dutch or your treat? Menu: What do you dislike to eat? Religious taboos should be respected. dog meat, paws of chickens and pigs, and internal organs of animals are unpopular food for Westerners. Medium:environment Music: guest’s national music, no rock or disco music Manners: no smoking; no spitting or expectorating; no noise; offering, but no urging, no making up before others, no offering food with your chopsticks. Japanese do not pour wine for themselves.

8. Table Manners in the West Drink soup with a round spoon outward, never with a bowl; Cut meat with the right hand and with the index finger pressing the knife; Do not put elbows on the table, put the elbows downward; The small knife is for butter and the big knife is for main course/food; The small fork is for dessert and the big fork is for main course; Do not fold napkins after using them; Finish eating after the host; Offer a tip to the waitress, amounting to 10-15% of the meal.

9. 7. Bad Chinese habits or culture offensive to some Westerners belching打嗝 expectorating and throwing garbage on the street smoking cigarettes indiscriminately making noise when eating picking your tooth at the table before others staring at foreigners urging the guest to drink or to sing songs Intruding into their privacy by asking private questions, standing too close, looking at the files on their desks without permission Late reply or acknowledgement of the receipt Not standing in a queue

10. 8. Working with interpreters Communicating with the interpreter before your meeting A good interpreter can help you immeasurably in culture. When talking through in interpreter, pause frequently and avoid slang and colloquialisms. Always talk to the host, never directly to the interpreter No slang or colloquialism “Hayi’ in Japanese is not equal to yes Japanese and Chinese usually do not say No to guests Restate what was accomplished at the close of a meeting to guard against misunderstanding Ask for a contact person for further dealings

11. 9 Guanxi and Hospitalityin the West and in the East 1) The concept of guanxi (personal connections) is not unique to China, but it is vital to getting important things accomplished there. Local and foreign companies spend heavily to establish and maintain relationships with influential people. The payoff may be personal or organizational. 2) At its heart, guanxi is a tit-for-tat relationship between two people. Chinese naturally turn to their relationship networks for help, so they work hard to cultivate friends in high or strategic places. If a Chinese finds him or herself without guanxi, the first order of business is to establish one.

12. 3) One reason for the pervasiveness of the guanxi system on the Mainland China is the relative lack of a reliable legal system. But it is also important in areas outside China, where the legal system is more developed. 4) Good guanxi is a renewable resource and can be reestablished even after much time has passed. But it may also be an exhaustible resource if the ledger between two people does not remain in approximate balance.

13. 5) Guanxi is well within the grasp of foreigners who wish to cultivate it. Often all it takes is an overture-a conversation, a meal, or a favor. Foreigners who live and work in China may become integrated into relationship networks, where they are expected to play by Chinese rules. Nonetheless, they are within their rights to draw their own lines as to what they are and are not prepared to deliver. 6) The Chinese assume the rest of the world works along a similar set of principles, and they sometimes view foreign friends as windows to benefits in the world outside China. They also often do not distinguish clearly between the world of the personal and the world of the organizational, which means that a personal friend may well ask for an organizational favor.

14. 7) Chinese generally fee freer to ask for favors earlier in a relationship than Westerners do. Unlike foreigners, who may feel quite put upon when asked for favors-especially personally favors that involve the use of organizational resources-Chinese are often very eager to be of service if they have it in their power to assist. In recent years guanxi has even been a commodity for sale. However, guanxi will play a less important role in getting things accomplished as the Chinese legal system is improving and the market economic system is developing. 8) Chinese prefer to do business with, and even to hire, those with whom they have guanxi, It is contrasted to an aversion to doing this among Westerners. They believe it diminishes the danger of problem, and makes solving them much easier when they do arise.

15. Your questions are welcome

16. Thanks for your attention !