Approaches to Cultural Factors for the Sino-US Business Negotiation
Abstract
Foreign trade between China and other countries has become closer day by day since China entered WTO. With the steadily increase on Sino-American business interactions, successful negotiation plays a more significant role. It’s priority to analyze how the process is influenced by other factors and in what way can it lead to win-win business.
In spite of factors like the economy, government policies, markets, laws, judicial system, currency, etc., culture has always been the most pivotal element that can exert considerable influence on the process of negotiation. Due to divergent ways of living, thinking and acting, there comes the different ways of thinking patterns and also communication styles, especially the business negotiation.
Therefore, confronting the cultural clash, the research of the approaches to cultural factors for the Sino-US business negotiation are put forward. Based on the perspective of the culture, the research is conducted with the methods of literature and case analysis. Through the long-term study, the research reveals that keeping harmonious atmosphere in the negotiation and creating this atmosphere in the negotiation are the two main strategies to reach successful negotiation.
Key Words: China; America; business negotiation; cultural clash
摘 要
自加入世贸组织以来，中国和其他国家的贸易日益紧密。随着中美贸易的持续增加，成功的商务谈判尤为重要。因此，当务之急便是分析贸易过程中的种种因素是如何影响进程以及以何种方法促成双赢合作。
除了经济，政策，市场，法律，司法系统，货币等因素，文化一直是谈判过程中能发挥巨大影响的一项因素。不同的生活环境、思维认知、行为准则，其思维方式和交流形式（尤其在商务谈判中）也不尽相同。
因此，面对文化冲突，提出了中美商务谈判的文化因素浅析的研究。本文基于文化视角，以文献法、案例分析法来对商贸合作中的谈判进行分析。通过长期研究，得出基于文化的两大谈判策略。这些策略主要是保持和谐的谈判气氛以及营造和谐的谈判气氛。
关键词：中国； 美国； 商务谈判； 文化冲突
Contents
I. Introduction 1
1.1 The Background 1
1.2 The Significance of the Study 1
1.3 Literature Review 1
II. The Advantages that the Cultural Factors Bring to the Business Negotiation 2
2.1 The Types of Atmosphere in Negotiation 2
2.1.1 Positive Atmosphere in the Negotiation 2
2.1.2 Serious Atmosphere in the Negotiation 2
2.1.3 Tense Atmosphere in the Negotiation 3
2.1.4 Long-haul Atmosphere in the Negotiation 3
2.2 Advantages from Cultural intermingling in the Business Negotiation 4
2.2.1 The Direction of a Business Negotiation 4
2. 2.2 Influencing from the Images of the Negotiators 4
2.2.3 Promoting and Understanding Each Other 5
III. Keeping and Creating the Cultural Intermingling in the Negotiation 5
3.1 The Ways to Keep Atmosphere in the Negotiation 5
3.1.1 Keeping conditions of Information Superiority 5
3.1.2 Keeping Conditions of Fixed Time 6
3.1.3 Keeping Conditions of the Rights 6
3.2 The Approaches to Make Use of Cultural intermingling in the Negotiation 7
3.2.1 Creating Atmosphere with Friendly Image 7
3.2.2 Laying the Foundation of the Negotiation 7
3.2.3 Seizing the Favorable Opportunity to Create Good Atmosphere in Negotiation 8
3.2.4 Paying attention to Skills in Creating Good Atmosphere 8
3.3 The Problems in Creating Atmosphere in the Negotiation 9
Conclusion 9
References 10
I. Introduction
1.1 The Background
China's trade is coming into a new step with rapid development, especially with the policy of One Belt One Road, with which individuals can operate business trade in some other countries. In the situation, the business negotiation based on different cultures are aimed at the ways to the blending of different cultures.
1.2 The Significance of the Study
China with a long history of business trade with America and it is in the process of economic development. In the field of the business, the negotiation to make the two sides into the agreement in the business is important. But in the process of the negotiation, some people will feel nervous and can not make their voices heard and then make the negotiation break down because of different cultural factors. So the culture factor is important to help the negotiators and make the negotiation come to an happy end.
1.3 Literature Review
According to economic management and the investigation and analysis of professional technical personnel of business negotiation, Bodtker,A.M., Jameson,J.K(2001) argues that the negotiators should be wise to get the demand heard in the negotiation. Baron,R. A(1990) argues that in the negotiation related to the interest of the company or the individual, the harmonious atmosphere can help both sides in a happy mood and have a happy talk in the process of the negotiation. Liu,M(2009) argues that the good atmosphere atmosphere appears when the both sides show each other respect and understanding. MD Foo, HA Elfenbein, HH Tan,VC Aik (2004) argues that the negotiation in business trade involves the complex background, business type, the hobbies of the business manager and so on, so the atmosphere creating is not easy. Du Xuejiao(2017) argues that to have a harmonious atmosphere the negotiators should respect the others’ culture.
II. The Advantages that the Cultural Factors Bring to the Business Negotiation
2.1 The Types of Atmosphere in Negotiation
The forming of harmonious negotiation is usually created with respect in the aspect of culture. Before the negotiations, there will be certain advance contact, in which the negotiators have chances to communicate and understand each other. There is no doubt that it is of great significance to know well others’ customs. And at the same time, it makes good or bad influence on the formation of a atmosphere in negotiation.
2.1.1 Positive Atmosphere in the Negotiation
Positive and friendly negotiations can make negotiators sincere toward the negotiation, adapting to each other. If the negotiators are active, the meeting topic will go on smoothly. If the atmosphere is pleasant, negotiators will often have be energetic and enthusiastic. If the negotiators are in neat clothes, they look generous and look nice. Meeting each other, they will be ready to take a seat, greeting each other. In a pleasant atmosphere, the negotiators are full of passion and confidence.
2.1.2 Serious Atmosphere in the Negotiation
In the serious situation, the atmosphere in which the two sides are not kind to the other side and they don’t have warm handshakes and don not ask the other side to have a seat or to have some tea. Because they don’t know well of the others’ customs and they talk in a simple way, so the atmosphere seems very serious. The negotiation is not smooth. The twos sides are in a situation where they are protect themselves.
2.1.3 Tense Atmosphere in the Negotiation
If the negotiators have not respect others’ customs, they will be in the cold, opposed and tense atmosphere in the negotiation, the negotiators are not friendly to the other side. They don’t care about the other sides and they don’t talk in an enthusiastic attitude because they are firstly to obey their customs. They don’t have a handshake and don’t have ask the other sides to sit down to have a tea. They are in brash exterior and try to beat the other side. They have talks in tone with puns and even with ironic attitude. With obvious psychological state of alert and distrust, both sides in the antagonism are in a tense mood and the start is in tense situation. The atmosphere in the negotiation casts a shadow across the opening. This type atmosphere in the negotiation is often in cases where the two sides conflict occurs. And this kind of atmosphere does not generally have promoting effect on negotiations.
2.1.4 Long-haul Atmosphere in the Negotiation
Business negotiations are always in several stages. If the negotiators don’t understand others’ culture, they can have agreement, so they speak in flabby, slow and protracted atmosphere in the negotiation. In the situation, the negotiators will feel bored, disheveled and depressed. They don’t shake hands and are not in neat clothes. The have not kind expression in their faces and do not care what others do. They don’t show their confidence in the talks and do not listen carefully to others. They will show attitude of contempt and try to shift topics. This negotiation is in an atmosphere of fight. This kind of atmosphere in general both hard to achieve their original expected target, nearly making negotiations break down.
2.2 Advantages from Cultural intermingling in the Business Negotiation
Harmonious atmosphere in negotiation an serve the negotiators in every stage of the negotiations.
2.2.1 The Direction of a Business Negotiation
A negotiating atmosphere can be in imperceptible in the commercial negotiations towards a certain direction. It will affect the negotiators psychology, emotion and feeling, which will cause the corresponding response. If negotiators don't try to adjust and change the situation, they will strengthen the atmosphere, influencing the success of business negotiation.
In general, a warm, friendly, positive, constructive talks have sincere atmosphere, which can help create cooperation and the characteristics of serious easily. A sincere attitude is to have a desire to make a deal and have sincerity to do business with each other. Cooperation will come into being, that is, the two sides can achieve their goals, willing to cooperate with each other and supporting each other. Easily, if both sides negotiators are not stiff, not in confrontation to cope, they will get success in the negotiation. Being earnest is a kind of serious attitude and it is active to help negotiators do a good job in business negotiation, striving to deal implementation.
2. 2.2 Influencing from the Images of the Negotiators
The different cultures in the negotiation can be accepted at the moment when the two sides start talks and influence the development of atmosphere after talks. Therefore, the initial period of forming the atmosphere of the negotiations is very important. So at the beginning both sides should pay attention to each other, trying to have a good start. At the start of the talks, when the two sides meet, they will formally introduce themselves to each other and then everyone will sit at the table, starting to negotiate. At this moment they are friendly to each other and they can chat something outside of the topic so as to make the atmosphere more active and easy.
2.2.3 Promoting and Understanding Each Other
Negotiations in tension and anxiety will make the negotiators concern about the result of the negotiations. In the negotiation there is no fixed form, so negotiators also have to guess the duration of the interview and the other criterion on major issues. If negotiations dominate the other side's status, they generally do not feel upset and worried. They will control program of the negotiation. And the active side will be eager to establish their own image, trying to avoid bad images to the other side, trying to understand the "instructions"of the other side with their own desire, which is likely to lead to the failure of the ideas.
III. Keeping and Creating the Cultural Intermingling in the Negotiation
3.1 The Ways to Keep Atmosphere in the Negotiation
In the negotiations, to create a good atmosphere can promote a win-win situation. But both sides are to know well of others’ culture before the negotiation. So culture recognition is needed.
3.1.1 Keeping conditions of Information Superiority
The negotiators need to be able to start the negotiation, making the other side that they have known their culture, what they want to get and what are their intentions. It is said that the information is the key to get winning in the negotiation with some knowledge of others’ culture. If the negotiators lack the necessary information, even the most experienced and most astute negotiators will be helpless and difficult to get winning. So the negotiators are requires to correctly make use of all kinds of information. They should openly and clearly shed light on their own position and try to capture all kinds of information to avoid the other side determining the way of negotiation and strategy. At the same time, the negotiators should put their real interests, needs and focus on the important issues in a strategically hiding shields.
3.1.2 Keeping Conditions of Fixed Time
Time is common to both sides in the negotiation, but the usage of the time will influence the negotiation and its effects come due to the negotiations in which both sides with specific conditions will put focus on the quality of negotiators. Making use of advantages of time is to make each other feel negotiation take up time, aging and the pressure of deadlines and making themselves feel relaxed and free to spend time actively. In this situation, the efficiency is very high. To make good use of time, the negotiators are require to use negotiation time effectively and to improve the work efficiency. At the same time, to force the other side to go in time and to hurry to increase roll information, that is, to make the other side feel stressful due to the large investment energy. In addition, making use of the correct time according to others’ custom to fix the deadline to force the other side to make a choice.
3.1.3 Keeping Conditions of the Rights
The negotiators are always trying to make the opponent know that they have more rights. This does not only refer to the decision-making of negotiation content, but also the option in the competitive negotiation rivals and professional knowledge or negotiation experience in their own profession and so on. Experience shows that in a large number of negotiations, if negotiators can have enough rights in the negotiation, they can show their ascendancy in the competitive situation, so the negotiators will give the other side pressure so as to influence and change their attitudes and behavior.
3.2 The Approaches to Make Use of Cultural intermingling in the Negotiation
Creating atmosphere in the negotiation is by no means "superficial". Friendly and warm atmosphere can help the negotiations go smoothly.
3.2.1 Creating Atmosphere with Friendly Image
Based on different cultures, both sides can use the easy topic and language to create a relaxed environment. At the beginning of the negotiations, don't show more straight words or tricky sensitive questions which can cause emotional resonance. The two sides should be applied easily and use proper words to start the negotiations. To reach the purpose of talks, agenda arrangement, development speed, the situation of the negotiators can be talked in the digression of bilateral interest. The harmonious atmosphere can bring joy of the successful cooperation, good feelings and so on. For both sides, as the relaxed conversation and affection are approaching, the atmosphere is get into harmony. In the situation, both sides can choose some of the same or similar official tentative topics to communicate, which can help make the formal negotiations go well.
3.2.2 Laying the Foundation of the Negotiation
Images that can help create friendly atmosphere in negotiation include a person's posture, facial expression, appearance, eyes, etc. Images can show whether a person is confident. And it can show whether the person is modest, friendly or tense. Whether the person is tired or energetic can be shown by his images. From the images, others can recognize the honesty and the auspice.
And to determine the appropriate negotiation speed is advantageous to the negotiations as well as tone. The progress of the negotiations is actually at the beginning of the negotiation. When the two sides exchange greetings, the conversations begin. When the negotiators get into the room, the others step forward and the two sides begin to chat and so on. Most importantly, negotiators should grasp the time when to talk and what to talk about, not pausing at the beginning of the conversation. They should slow the rate of subsequent negotiations. On the contrary, if one side talk too fast, gushing and in a flurry, he is getting a bad start. The ideal is to seek a kind of easy and efficient way to start the negotiation.
3.2.3 Seizing the Favorable Opportunity to Create Good Atmosphere in Negotiation
Loving modest attitude is our common humanity. Gentlemen often can get more help more than those who are smart. In the negotiation, the negotiators should try to be brave and make others trust themselves. Gentlemen do not always stand in a high position, but being gentle and modest performance can help one show a good image. A man with honesty can make others trust themselves and the negotiators will create emotion which can help one get close to others. On the appearance of the negotiation issue, making use of some strategies and skills, the men with honesty can make good melody in the negotiation. Only in this way can both sides truly make the whole negotiation always maintain harmonious atmosphere.
3.2.4 Paying attention to Skills in Creating Good Atmosphere
When the two sides have been seated, it is high time to start the negotiation, because many social etiquette are performed while the people are standing. So when the negotiators are seated, it is convenient for them to have talks. In addition, if the good atmosphere in negotiation is created when the negotiators are standing, it means that it is high time for the negotiators to star their talking and the talking will be performed in a good atmosphere. Later, there is a stage"into the topic '. Due to the discussion of the upcoming, both sides will unavoidably feel a little nervous, therefore, a silence of the time is needed for them to adjust the relations with each other. In this paragraph, how long is it? In general, it should be 5% of the whole negotiation time. That is to say, if the negotiation will last two hours, the negotiators need 5-6 minutes to get into the clam mood. If the talk will last a few days, one night is needed before the start and both sides will have dinner or a formal contact.
3.3 The Problems in Creating Atmosphere in the Negotiation
At the beginning of the negotiations, good atmosphere has not been formed and negotiators are nervous and cautious. Both sides should first talk something about the neutral topic to get close to each other. For example, talk something about the daily life and show concern to the other side’s life. Reviewing something good in the past may help get into good relationship. And talking about the news is a good way to make the serious mood disappear. All hese will help ease the tension in the negotiations at the beginning and help achieve the goal of bonding.
Conclusion
The business negotiation is very important in the trade, because it is the key in the negotiation formation stage. The culture recognition in the negotiation directly affects the negotiation process and results and in the negotiation the negotiators are very serious because whether the negotiation is successful is related to the interests of themselves, so the culture recognition is the key for the negotiators to relax to have a good talk with the other side.
Acknowledgements
My sincere gratitude goes to Professor 某某, whose expert advice led to the improvement of this thesis and taught me the importance of reflection in academic research; and 某某, whose insightful comments on this thesis inspired me to ponder on the research question from a perspective totally different from the one adopted in this thesis. I also want to thank Professor 某某, whose lectures on English academic writing equipped me with the skills needed in producing this thesis and whose suggestions on the content and style of my thesis are much cherished.
My thanks go as well to my loving parents, whose support and encouragement have accompanied me throughout my studying in 某某大学 as an undergraduate student.
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