The Secret of Harmonic Business Relationships

Chinese Business is built on long-term and partnership relationship. The majority of businessmen know this principle under the name “Guanxi”. This principle is also applied to negotiation process, which is a reference point of building business relationships.

First of all, it is necessary to pay attention to the moment of the first meeting. When a foreign manager begins to communicate with Chinese representative, he should try to find a range of common touch points. For example, if Chinese counterpart speaks a little bit Russian, the touch point will be — where he studied Russian. If he studied Russian in Moscow, then, he can tell many things about the capital, because respect and interest to the culture is the first touch point.

The second touch point may become children, but speaking about this, foreign manager should be very tactful. Such tactfulness should be connected with demographic policy of China, the main idea of which is a birth of one child in a family. That’s why it will be impolitely to ask about a number of grandchildren.

The third point, which should be noted is that the system “Guanxi”, system of friendly relationships, is directed to detect common touch points, in order to understand, who knows whom. The accent is made on building friendly relationships on the base of interests, for example, to Russian ballet or Russian vodka; however, it is very important to know when to stop. In such way, attitude to Chinese representative should be as attitude to the family member. Such friendly atmosphere and discovered common points should become the base of business negotiations and future deals.

It is also important to remember some particularities of Chinese culture, when you want to give presents. For instance, never give watch, because such present means the end of business deal. Moreover, looking for a present, it is better to take into consideration the fact, that Chinese like very much red colour as colour of celebration. It is also could be observed: red national cloths, red flag. In such way, giving any present, foreign manager should be attentive, in order that this will not lead to misunderstanding.

To build friendly relationships, virtual roundtables that doesn’t mean to forget about business aim. If you have some controversies in business, it is important to remain friendly and to gain wished prise due to prolonged business negotiations. Negative reaction will make your efforts groundless and needless. For instance, one of the workers of Daimler Chrysler said: “We thought, that we have a contract with China, actually terms were changed everyday.” In such way, even working with one of the biggest companies of the USA, Chinese businessmen played by own rules. The other example is broadening of net of McDonald’s restaurants in China. When the first restaurant was build, Chinese ask the company to move it on a distance of 700-800 meters from the previous place. The negotiations were very long between parties, but the restaurant was moved with condition, that it will be paid a big compensation, what was made by Chinese without judicial settlement. After this Macdonald opened a big net of restaurants in China. For a comparison, there is another example. One of the foreign companies went to the law and won the process case about breaking terms of delivery by Chinese party; however, never can built again relationship with Chinese companies. Thus, the short termed aims were achieved, but strategic – not, therefore it is important to remember about friendly way of building relationships as with relatives — “Guanxi”.

To conclude, the experienced manager also should know, that “Guanxi” could become for him a key to harmonic relationship with businessmen from China. It is possible to built due to knowledge about narrow moments of culture of China and skills to create friendly family atmosphere, but at the same time to make a invisible border between business and common informal interests. Found touch points in form of cultural interest, as was already mentioned, could underline respect to culture and make Chinese more disposed to building long termed business relationship.

Leave a Reply

Your email address will not be published. Required fields are marked *