PAN FAN LI HUI

Abstract： Cross cultural business negotiation is a process involving negotiators from two or more different cultural backgrounds. This paper is an examine of the problems in the process of business negotiation and is about how to cope with these problems.Through such a study， we hope， the negotiation would be smoother and more focused on the business itself， rather than hindered and sabotaged by misconceptions caused by cultural issues.

Keywords： cross culture； business negotiation； China and US； cultural difference

中圖分類號：F715.4；D80

1 A brief introduction on the business negotiation between China and US

With the development of trading also rises trade frictions and conflicts. However， both sides agree that the friction wont lead to reversion. China has been advocating that both parties involved should adhere to the principle of mutual respect and choose to settle bilateral or multilateral trade disputes through friendly discussion. And the American government has always valued China as an important business partner. Nevertheless communication barriers are caused by the cultural difference between the two countries in bushiness negotiations.

2.The reasons for communication barriers in Sino-US business negotiation

First， the religion. American society emphasizes individual identity and self-realization， which is totally different from Chinese society. During negotiations， Americans are more active， more flexible and more ready to accept different proposals. On the other hand， due to the religious beliefs of Confucianism， Taoism and Buddhism， Chinese people are accustomed to be in harmony with the environments expectations and behaving themselves according to social norms. Thus they tend to do more preparation for negotiation and are less willing to make changes.

Second， individualism and collectivism. Those who come from a collectivist culture are more inclined to define themselves in terms of their relationships with others， and tend to give up more of their individual needs when conflict occurs between their needs and the need of group.

Third， different cultural backgrounds have different ways of thinking. In the negotiations， Chinese people would like to do something to enliven the atmosphere. Also， the details of the problem is also discussed before the major issues. When it comes to the final decision， decision is made through group discussion. Americans， on the other hand， will address those in-depth topics at the beginning of the talk， and when it comes to the making of final decision， one negotiator have final decision-making power. Chinese people takes a long time when making decisions and Americans， after considering all factors， tend to act decisively spending a short time.

3. Coping Strategies for Communication Barriers in Business Negotiation

3.1 A case study of barrier-free negotiation between China and US

Case study： one US company had a contract to sell Chinese bicycles to German buyers in Germany. When the first shipment was finished， there was a problem. The wheels rattled. The American buyers did not want to accept the consignment， knowing that with the rattle， the bikes do not meet the requirements of the German customers. For the American culture， the normal approach would be telling the manufacturer directly that the rattling bikes were unacceptable and that the problem should be solved. However； in China， such a direct confrontation would be very rude and too much loss of face. He was placed in a difficult situation. If he did nothing， his Chinese partner would ship the rattling bicycles and his German buyer would reject them. Finally， the American manager went to the Chinese plant， inspected the bike and rode around with it. The bike rattled. The assembly workers now have a chance to hear it， and they frowned. At this moment， the American buyer asked about the rattle. "Is the clatter normal？ Do all wheels rattle？ Do you believe that the German buyer think there is something wrong with the bike if it rattles？" Then he left. The American buyers knew that he had drawn enough attention to the rattle and the Chinese manufacturer would immediately solve the problem. Then the next shipment of bikes had no rattling. （Jeanne M. Brett， 2000：10-11）

In this case， the American negotiators are fully aware of the sensitive issue of cultural differences when handling business conflicts. In respect of the Chinese face concept， one American expert once suggested： we can get a great deal by means of helping the Chinese get face； a great deal will be lost if we do not give face to the Chinese. So， Americans clearly show that the Chinese people have strong desire to win face in a business negotiation and face-orientation is very important for Chinese negotiators when it comes to conflicts in business negotiation .

3.2 The coping strategies to reduce Sino-US culture barriers in negotiation

In response to the major causes of the the barrier in the process of negotiation， we will offer strategies to prevent the damage. As we analyzed before， three reasons lie behind the difficulties， they are： first， the American society emphasizes achievements and self-realization； second， the difference between individualism and collectivism； third， different cultural backgrounds have different ways of thinking.

For the achievement orientation of the American people， we need to keep that in mind throughout the whole negotiation process. American people are generally pragmatic and business-like. They value less of personal relation than business benefits. Therefore in negotiation， we should waste no time on the cultivating of personal friendship hoping to gain leverage from a better relation.

For the individualism， we should know that， while Chinese negotiators rely much on group decision and routine， the American negotiator are much more flexible and adaptable. They can make decisions by their own will on the negotiation desk. Therefore， prepare for changes and try to be more flexible during the negotiation.

As for the different thinking patterns， as long as the negotiator has some basic knowledge about this， it wont pose any problem. Go straight to the topic， dont beat around the bush. Be precise in your numbers， they dont like vagueness. Keep to the time of the appointment， never be late. And pay attention to the way you use your language， keep in mind that the Americans often understand a sentence by its literal meaning.

3.3 The methods to improve the quality of Sino-US business negotiation

A lot of work need to be done before the negotiation. It is necessary to understand each others background， prepare for negotiations places and spaces according to the number of participants， and learn about negotiation etiquette as well as negotiation language. While doing these preparations， we should consider the American culture values of freedom and equality. Mutual respect is very important in cross cultural negotiation， for it will create a harmonious and friendly atmosphere， which is going to ensure the smooth progress of the negotiation. Any negotiation is made up by the two parts of speaking and listening. In Sino-US business negotiations， listening to each others point of view is very important. Only by listening carefully can we get useful information. Compared with the Chinese， US negotiators often do things very carefully， and always conduct a thorough preparation on the negotiations. To deal with this， the Chinese negotiators， in the early stage， should actively gather information， and get more information by listening to the other side.

4. Conclusion

There are three reasons behind the difficulties we encounter in Sino-US cross-cultural negotiation： first， the American society emphasizes achievements and self-realization； second， there exists the difference between individualism and collectivism； third， different cultural backgrounds have different ways of thinking.

In response to these problems， we need to keep in mind throughout the whole negotiation process that American people are generally pragmatic and business-like. We should also know that， while Chinese negotiators rely much on group decision and routine， the American negotiator are much more flexible and adaptable.

At last， as the different ways of thinking， we should go straight to the topic， and dont beat around the bush. Be precise in our numbers， because they dont like vagueness. Keep to the time of the appointment， thats means that never be late. And pay attention to the way we use our language. Keep in mind that the Americans often understand a sentence by its literal meaning.

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