Between 1995 and 1998, George Martin lived in Shanghai while working for
Minneapolis-based law firm Faegre & Benson. He says China is not like any
other modernizing country—so forget the preconceived notions and listen closely
to the subtext of negotiations. Martin now lives in Minnesota, but travels to
China often. Martin now lives in Minnesota, but travels to China often.
“The pace of life, the
noise pollution, the traffic, and jostling for position in business in
China is very
intense. And yet, negotiating transactions, getting them approved, and setting
up business takes months or years. Socializing is an integral part of any
negotiation process in China. The
Chinese want to get to know their future partners as a business and as people.
“It’s important to recognize the significance of saving face in the Chinese culture. In a negotiating context, this means sometimes entertaining positions put forth by the other side that everyone knows are unreasonable, but which the Chinese negotiators are being pressured to assert from within their organizations. Respecting their position while rejecting it is not necessarily inconsistent.
“For example, I was handling a transaction with a client in Beijing several years ago. It was difficult, and the other side was making demands that simply weren’t acceptable. We negotiated rationally, but that only got us so far. Ultimately, we needed to convey how serious we were.
“Finally, I advised my client that we needed to close our briefcases, get up and leave. This was a demonstration of resolve—and the only way to break the logjam. We did so, and were called back the next day. The Chinese negotiators were able to tell their superiors that they pushed us as far as they could. Only then could they take a more reasonable position. We then completed the transaction.
“Patience, flexibility, and respect all play an important role in successful negotiations in China, where face saving is essential to resolving issues.”
