This article will introduce you to the Chinese negotiation culture and give you some tips and strategies to get what you want. Teaching you how to deal with Chinese suppliers in order to best reach your goals?

1. With more and more buyers
sourcing directly from Chinese
suppliers, negotiation is often
a critical element in closing a
deal.
Do you know how to deal with
Chinese suppliers in order to
best reach your goals?
If not, this article will introduce
you to the Chinese negotiation
culture and give you some tips
and strategies to get what you
want.
© 2010 - Negotiating With Chinese Suppliers - Page

2. Negotiating is never easy, but it can become even more difficult when faced with an unfamiliar culture. Although anything can be negotiated
in China – you’ll probably get better results if you know the ins and outs with suppliers. The more you understand about the positions, cultures,
pressures and backgrounds of your counterparts, the more you can use that knowledge to get what you want.
Here are six tips to keep in mind when negotiating with Chinese suppliers:
Do Your Research
Suppliers know everything there is to know about their Communicate Clearly
products and will use this against you if you’re not prepared. Before
negotiations, use a reliable B2B e-marketplace such as Alibaba.com Failed negotiations can sometimes be due to
to find out details of the products you are negotiating for including miscommunication between the parties involved. To avoid
costs, production times, delivery schedules, etc. If you know the misunderstandings, always remember to keep your communication
numbers better than your counterparts, you can't be taken clear and concise. Take plenty of notes during meetings so that you
advantage of, no matter whom or what you are dealing with. can confirm with the supplier again regarding terms which you have
verbally agreed upon.
Always Maintain Your ‘Cool’
The negotiation process can get very frustrating so it’s Patience Is Key
important to stay polite and professional at all times whether you
are at the negotiating table or at an informal gathering. Losing your Chinese suppliers sometimes employ what’s called the
temper in front of suppliers can mean a number of things to the “iron strategy” to get what they want, meaning that the longer they
Chinese, and can even be a tactic for suppliers to make you divulge wait, the more desperate buyers will get. One classic tactic is to have
information you did not want them to know. seemingly pointless meeting after meeting to tire you out. The
solution to this is to first arrange a meeting with an important, high-
level manager in the company who has little time to waste.
Secondly, learn to wait. A few days is not a long time, so the longer
you wait it out, the higher your chances of breaking through.
© 2010 - Negotiating With Chinese Suppliers - Page 2

3. Stick To The Contract
Remember that Chinese business people will always want Build Lasting Relationships
to negotiate, even after a contract is signed. That’s because in China,
contracts are just a starting point for future discussions. To them, it's Lastly and most importantly, business in China is all about
not coming back and renegotiating, it's actually part of the process relationships, or ‘guanxi,’ a ‘you scratch my back, I’ll scratch yours’
that was started with the contract. Always refer back to the original mentality. If you are looking to do business in China over the long
contract, because no one else will, and try your best to convince run, it will be very much worth your investment to establish strong
them to stick to the terms originally agreed upon. working relationships. What your business could get in return from
the favors for your partners are often more much more valuable.
To build ‘guanxi’, treat your suppliers fairly instead of focusing on getting the lowest prices. Frequent contact, social gatherings and small
favors also help foster the relationship. In time, your supplier will start seeing you as not just a business partner, but as a close friend too.
About Alibaba.com
Alibaba.com (HKSE: 1688.HK) is the global leader in e-commerce for small businesses and the flagship company of Alibaba Group. Founded in
1999, Alibaba.com makes it easy for millions of buyers and suppliers around the world to do business online.
© 2010 - Negotiating With Chinese Suppliers - Page 3