Attraction Investment From China – Negotiation Process

Any developer of business project should pay attention not only to particularities of Chinese management and Chinese philosophy of business, but also to the process of negotiation, in order to get proper investment. It is important to present own investment project correctly.

First of all, it is necessary to be ready to prolonged negotiations, which endure not two or three days. Usually, the duration of negations with Chinese businessmen is about 1-3 months. So, Chinese representatives already at the beginning of negotiation process ask a question about departure date from China of foreign project manager. If departure day is approximately in a week, Chinese will be busy and there is a small chance, that they will get down to business.

To illustrate sluggishness of Chinese during negotiations, possible to look at the following example. One of the billionaire of the USA, having an office in Hong Kong, decided to move to China. When he was asked about the reasons of his leaving to Shanghai, he answered, that he was going to live in Shanghai, because of strict time-management and often contract concluding on unfavorable terms, that happens on the base of short termed staying. This example proves one time more, that the negotiation process with Chinese representatives is long in majority of cases.

The next point that should be noted is strictness of Chinese representatives. To be exact, they will try to check seriousness of the proposed project and its representatives. For instance, Chinese managers can make show, that they are not interested in your professionally developed project, even they liked it; however, they could call in two or three days. In such case, their reaction will be positive or negative, depends on character of your answer. If your answer will be fit of anger, Chinese can decide, that you have not enough serious attitude to the project. That’s why working on conception of the negotiation process, experienced manager should make his team ready to some kind of tricks and seriousness checks.

The other point to be noted is that the negotiation process in frame of investment talks is stretched and it is difficult to understand, where is the beginning and end. Moreover, it is impossible to predict signing of the contract and money receiving. Many experienced managers give an advice to go with the stream during any stage of negotiation process. There should be absolutely similar attitude to the first and to the last meeting and other events, which are offered by Chinese party. For example, there is a rule, that a person, who wasn’t on Chinese wall, can not understand China. Many Chinese managers pronounce this saying during negotiations. In majority of cases, Russian or European representatives propose to rent a bus in order to go to Chinese wall; however, for many Chinese the climbing and foot excursion to the Great wall will be stimulus. Proposing a foot stroll, manager could demonstrate respect to representatives’ culture and traditions.

Thus, negotiation process with Chinese representatives requires to be calm, serious to the project and ready to some kind of unexpectedness. Moreover, it is necessary to show patience, even then if negotiations are long. These points about business talks with Chinese could help to present own project properly and to gain investment.

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