Cultural dynamics while doing business in China

The Basics of American and Chinese cultural differences when doing business in China:

Some key differences in business culture between US and China:

• Americans wants do 'do a deal' while Chinese want to 'build a relationship'
• Americans wants to maximize short-term profits while Chinese are long term thinking
• Americans are 'direct' while Chinese will not deliver bad news
• Americans want to move quickly, while Chinese move when they're ready

Guanxi:
Guangxi describes the Chinese dynamic in personalized networks of influence and is the central idea in Chinese business relationship. Knowing someone who can make introductions for you is a very important step in successful business dealings in China.

Earning trust and respect should be considered the first step in business interactions. With a strong Chinese partner, everything is possible.

Negotiations:

• Americans value straightforward, while Chinese are master of oblique
• Be prepared and know all details, because the Chinese always do (Even after bottles of rice wine)
• Chinese may appear indifferent and unemotional during negotiations
• Remain calm and impersonal during negotiations and discussions
• Know that Chinese will negotiate ANY price
• Americans tend to appreciate value, where Chinese are transactional and price driven
• Give in to some issue in your negotiations, as this will benefit you in the long run
• Be copious and diligent in your contract discussions and signing