Written by Marijn Overvest | Reviewed by Sjoerd Goedhart
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Chinese Negotiation Style

Understanding the cultural dynamics between negotiations is essential for Chinese success. These well-versed business people continuously compete in international markets. It is why doing their ‘way’ of things is necessary, as it allows them to recognize their value.

China’s history of intrusive foreigners shaped its bias against doing business on the international scene.

Respect for their culture is of utmost importance. One should avoid referring to them as a third-world country. 

They also prove this dignified image through extravagant meals and entertainment to create strong connections. Declining this means disinterest or a disagreement in the middle.

Chinese negotiations highly value bargaining towards long-term commitments. It emphasizes how they value loyalty and trust between potential partners.

In Chinese negotiations, a distributive and contingency bargaining approach emphasizes long-term commitments. 

For the Chinese folks, there are always three things to remember: Patience, Persistence, and Laser-focus on relationships.

Japanese Negotiation Style

Many Japanese business people are experienced in interacting with other cultures.

However, this does not mean that they are open-minded. When negotiating business here, people expect that you understand and follow the Japanese way of doing things.

After all, this country, with its history as an isolated ‘Island Nation,’ is culturally very homogeneous and commonality of customs is considered highly desirable.

To the Japanese, negotiating is usually a joint problem-solving process. The buyer has a dominant role and the seller carries a stronger burden to support that buyer than in most other societies.

Vendors are expected to do whatever it takes to satisfy their customer’s needs, and salespeople may receive harsh treatment from unhappy clients.

In extreme cases, Japanese customers may demand to receive details of their vendors’ cost structure and expect to receive prices at some margin above that.

At the same time, both sides are expected to ‘take care of each other.’

The buyer will therefore ensure that the seller makes a profit in the deal, though what they may consider acceptable is often lower than in many other countries.

Ultimately, both sides are partners in a mutual dependency that is bound by their relationship. Both are expected to make a long-term commitment to their business engagement and will mostly focus on its long-term benefits.

Sellers may be expected to accept short-term losses for longer-term gains. A Japanese buyer is interested in what the vendor will do to reduce costs in the future, expecting that most of the savings are passed on so that both buyer and seller can enjoy more business by reducing the cost of their product or service.

The primary negotiation style is cooperative and people may be open to compromise if viewed as helpful to move the negotiation forward. It is important to be flexible and creative to get a deal that both sides are pleased to have.

Should a dispute arise at any stage of a negotiation, resolving it may require the help of an external mediator, ideally the party who initially introduced you.

Expect negotiations to be slow and protracted, with immense attention paid to details throughout all stages.

Relationship building, information gathering, bargaining, and decision-making all take considerable time.

The Japanese negotiation style is very formal and tolerates only a restricted set of negotiation tactics.

Indian Negotiation Style

In India, the primary approach to negotiating is to employ distributive and contingency bargaining.

While the buyer is in a superior position, both sides in a business deal own the responsibility to reach an agreement.

They expect long-term commitments from their business partners and will focus mostly on long-term benefits.

Although the primary negotiation style is somewhat competitive, Indians nevertheless value long-term relationships and look for win-win solutions.

They may occasionally appear to be pursuing a win-lose approach, in which case it pays to help them focus on mutual benefit.

However, avoid being confrontational! Expect negotiations to be slow and protracted. Delays are often inevitable, particularly when dealing with government bureaucracy.

Be prepared to make several trips if necessary to achieve your objectives.

Throughout the negotiation, be patient, control your emotions, and accept that delays occur. Indians view impatience or pushiness as rude!

Russian Negotiation Style

Previously the leading state of the USSR, Russia became a separate country in 1991.

Most business people and officials in the country have little experience with other cultures except for its neighboring countries.

There is still a widespread lack of free-market knowledge.

It may be necessary to discuss and seek agreement over the definition of concepts such as fair play, goodwill, profit and loss, turnover, individual accountability, proprietary rights, and so forth.

Even when you do, people’s expectation may frequently be that things are done their way.’

Most Russians are very proud of their country.

It would be a serious mistake to belittle its accomplishments or to refer to it as a ‘loser’ of the Cold War.

In Russia, the primary approach to negotiating is to employ distributive and contingency bargaining.

The buyer is often in a strongly favorable position and may try to push the responsibility to reach an agreement with the seller.

Given the country’s relatively unstable political and economic situation, negotiators may focus mostly on the near-term benefits of the business deal.

The primary negotiation style in the country is very competitive and people may become outright adversarial.

Most Russians view negotiating as a zero-sum game in which one side’s gain equals the other side’s loss.

Negotiations may become more personable and at least a little more cooperative if strong relationships have been established between the parties.

While quite a few Russians are highly skilled negotiators, the majority of business people in the country have only limited experience in the field.

They may expect to do some bargaining and occasionally haggle a lot, but this is rare. None of this makes them easy prey, though.

Russians can be extremely patient, persistent, and stubborn negotiators. It can be very difficult to obtain concessions from them.

They often view compromise as a sign of weakness and may frequently refuse to change their position unless the other side offers sufficient concessions or shows exceptional firmness.

Similarly, they may make minor concessions while asking for major ones in return.

Negotiating with Russians inevitably includes much posturing and maneuvering.

The best approach is to be polite but remain tough throughout the bargaining process.

Conservative attire is important when doing business here. Male business visitors should wear suits on most occasions.

While you do not want to appear overdressed, make sure your shoes and your suit are in good condition.

American Negotiation Style

There is probably a greater diversity of business cultures and styles in the United States than in any other country in the world.

This makes preparing for specific business interactions difficult.

Because of the wide spectrum of heterogeneous cultural influences, however, Americans are usually tolerant of unconventional negotiation styles and habits as long as they do not conflict with their values.

On the other hand, many share a strong belief that the country’s culture and value system is superior to all others, which members of other cultures sometimes interpret as arrogant.

People in the country may be convinced that the American way is the only morally acceptable one, insisting that everyone play by a common set of ‘ground rules.’

While we strive to explain critical beliefs throughout this section, business practices may deviate from the general guidelines provided in the following.

Always expect the unexpected when doing business in this country.

The primary negotiation style is competitive, sometimes intensely so.

Although people will look for win-win solutions, they may strive to ‘win more’ than the other side does.

Power factors such as company size and financial strength play a major role and may frequently be emphasized.

When negotiating, Americans may appear fiercely competitive or even combative. However, they will ultimately be interested in finding a solution that both sides can accept.

It is best to remain calm, firm, and persistent. At the same time, show a positive and constructive attitude without taking things personally.

Negotiations in the U.S. may take less time than anywhere else in the world.

‘Speed matters’ and ‘time is money’ are beliefs most members of this culture share, and doing is usually valued much more highly than planning and analyzing.

Accordingly, your counterparts will generally want to finish the negotiation promptly and implement actions soon.

Even complex negotiations may not require more than one trip, as follow-up negotiations are often conducted via phone and e-mail.

While most Americans are comfortable with bargaining, few of them like to haggle.

They can be ambitious, tough, and aggressive negotiators, though, often going for the biggest possible slice of the business.

Appearing confident and assertive is essential, since facing an insecure counterpart may encourage Americans to negotiate harder.

State your position clearly and be willing to push for it as needed. It can be advantageous to emphasize the uniqueness of what you have to offer.

Negotiators in the U.S. often take firm positions at the beginning of the bargaining process. Neat and clean attire is important when doing business here.

However, dress codes can be somewhat more casual than elsewhere, especially on the West Coast. Business lunches are more common than business dinners.

Americans often discuss business during meals.

Social events do not require strict punctuality. While it is best to arrive at dinners close to the agreed time, being late to a party by 15 to 30 minutes is perfectly acceptable. 

Smoking is prohibited in most offices, also in and around many public places.

French Negotiation Style

It is very important to show respect for the country’s history and importance. The French attitude can sometimes appear arrogant or egoistical to foreigners.

However, any sign of disrespect or a refusal to endorse it as a great and important nation can have a substantial impact on your business relationship.

In France, the primary approach to negotiating is to engage in a debate aimed at reaching a mutually agreeable solution.

While the buyer is in a superior position, both sides in a business deal own the responsibility to reach an agreement.

They may focus equally on near-term and long-term benefits.

The primary negotiation style is cooperative, but people may be unwilling to agree with compromises unless it is their only option to keep the negotiation from getting stuck.

In addition, negotiators in this country may be very passionate and can appear outright aggressive.

The French may not always show a win-win attitude, especially if they believe that ‘logical’ reasons support their position. While the exchange of facts and arguments may get heated, it is vital to avoid any open confrontation and to remain calm, composed, patient, and persistent.

Expect negotiations to be slow. While the French may not always spend a lot of time preparing for the negotiation, bargaining, and decision-making can take a long time.

Aspects of your proposals may be analyzed and scrutinized repeatedly. Remain patient, control your emotions, and accept the inevitable delays.

Most of the French are not fond of bargaining and strongly dislike the haggling strategy. 

The bargaining stage of negotiation can take substantial time, though, with significant time spent discussing proposals and debating the merits of specific terms and conditions.

Prices rarely move by more than 25 to 30 percent between initial offers and the final agreement.

Conclusion

There are various ways to do negotiation and as a negotiator you should know which styles to use on whoever you’re negotiating on. Be mindful of who you’re negotiating, the context of your negotiation and many other factors like the culture of the other party.

These may seem like trivial things but these are all factors you have to take into account to have a smooth and successful negotiation. If you’re still in doubt check out some of our negotiation courses here at Procurement Tactics.