2. Use Hong Kong as your base to enter China. The most notable advantages of using Hong Kong as a starting point into China are: the availability of a reliable legal and financial infrastructure; a 15 percent flat tax rate; the ease of establishing a business entity; and experienced local tri-lingual (English, Mandarin, Cantonese) executives and consultants that can be hired.

3. Learn about Chinese culture. American and Chinese negotiation styles are dramatically different. Properly handing your business card (with two hands) and using a Mandarin or Cantonese greeting will go a long way toward showing and earning respect. Contrary to the American style of working deals, negotiations in China are largely dependent on relationships and consensus decision-making. One American executive she knew nearly killed a deal in Hong Kong when his Chinese counterparts allowed three signing deadlines to pass. By allowing additional time for consensus building, making some minor contractual changes and offering a price that ended in the "lucky" number "88," the deal was finalized.

4. Leverage an existing relationship. Work with a company who already has a Chinese presence; however, be aware that international marketing partnerships are only effective in Asia when you build relationships and work directly with your partner's local staff. Cultivate 'zhongjian ren' (the intermediary) because a gifted Chinese go-between is indispensable even after an initial meeting takes place.

5. Assist your family of companies. Many Chinese companies would like to enter the American market. If you can come up with a way to assist them, they may be more willing to bring you into their network. The person with the best 'guanxi' (personal connections) thrives.

6. Take care of the people who make introductions. Maybe someday you will help them out. Or, if you can justify paying a referral fee up front, mention it. They may say no, no, no. If you think it's a good idea to thank them in such a way, insist on it. Chinese are not as straightforward as Americans are -- no doesn't mean definitely no. Two Chinese can carry on the insisting and refusing game for a long time before one party gives up.

7. Bend the rules while sticking your neck out. Most rules can be bent for special situations for special people. If one is persistent, has endurance and is patient, one is more likely to affect the outcome. And, although the Chinese might not respond to your communications and may act as if they are disinterested in what you are offering, remember this: It is your effort that gets noticed, and oftentimes the effort is far more important than your offering.

8. Slow your pace. Meetings with potential partners over lunch and dinner are also occasions to recognize the slower pace of Chinese business. Meals in China are usually longer than what foreigners are accustomed to. Be patient and flexible. The time spent with people is a worthwhile investment that will pay off in the future.

9. Be courteous. Courtesy and discretion are paramount. No Chinese would be eager to deal with people -- whether online or offline -- who do not respect their way of living and conducting business. Also, be careful with your opinions on politics and government. The Chinese may not want to share with you what they really think about the government policies unless they are very close friends of yours.

10. Create desireability. Building a large and profitable presence in China requires top-quality products that are affordable to the masses. Creating desirability is an absolute must. You have to get to know your customer in order to determine which of your products offer the greatest consumer appeal and fit best with the local culture.

Work hard to satisfy the Chinese and your efforts will be rewarded with the acquisition of a powerful, lifelong trading partner. At the same time, your business will increase revenue, profit and prestige. Are you ready?

by Laurel Delaney

http://www.nationalbusiness.org/NBAWEB/Newsletter/911.htm

Quoting from [Usama El Kady]:

1. Know the market. There are tremendous business opportunities in China, but don't assume that Chinese buyers aren't looking at other options. Your product or service may need to be altered to fit local needs or interests. Senior executives in Asia are quite accessible, and time spent meeting people before entering the market is essential. Government and quasi-government organizations have considerable influence in Asia and can assist you. Additionally, there are consulting and free services available to make introductions.

2. Use Hong Kong as your base to enter China. The most notable advantages of using Hong Kong as a starting point into China are: the availability of a reliable legal and financial infrastructure; a 15 percent flat tax rate; the ease of establishing a business entity; and experienced local tri-lingual (English, Mandarin, Cantonese) executives and consultants that can be hired.

3. Learn about Chinese culture. American and Chinese negotiation styles are dramatically different. Properly handing your business card (with two hands) and using a Mandarin or Cantonese greeting will go a long way toward showing and earning respect. Contrary to the American style of working deals, negotiations in China are largely dependent on relationships and consensus decision-making. One American executive she knew nearly killed a deal in Hong Kong when his Chinese counterparts allowed three signing deadlines to p *. By allowing additional time for consensus building, making some minor contractual changes and offering a price that ended in the "lucky" number "88," the deal was finalized.

4. Leverage an existing relationship. Work with a company who already has a Chinese presence; however, be aware that international marketing partnerships are only effective in Asia when you build relationships and work directly with your partner's local staff. Cultivate 'zhongjian ren' (the intermediary) because a gifted Chinese go-between is indispensable even after an initial meeting takes place.

5. Assist your family of companies. Many Chinese companies would like to enter the American market. If you can come up with a way to assist them, they may be more willing to bring you into their network. The person with the best 'guanxi' (personal connections) thrives.

Most of secrets would automaticaly apply to all business negotiations irrespective of geography or culture being different.

Good posting to elaborate the art of negotiation

Sixer