How to be successful in negotiation with Chinese business partner?

Introduction
The People’s Republic of China opened its market to the rest of the world at the end of 70ties. This fast growing market with more than one milliard consumers represents nowadays an extremely interesting destination for activities of international trade companies. That is why more and more authors try to get to understand deeper Chinese business environment, business practices and negotiation style of Chinese partners within B2B.
Key factors which must never be mixed with each other but have to be taken into account while doing business with Chinese counterparts. Chinese culture, philosophy, social psychology and Chinese way of thinking are fundamentally different from “western” conception.

1. Culture and negotiation
Culture and negotiation are very complex terms. Culture is a set of learned behavior and its results, particular parts of which are shared and handed over by members of a concrete society. Negotiation is a process when two or more parties try to solve seemingly contradictory aims. We negotiate continuously with customers, suppliers, trade unions, family members, actually with everyone we meet. Negotiation can be divided into eight following phases: 1) preparation, 2) argumentation, 3) sending signals, 4) proposal, 5) offer, 6) bargaining, 7) conclusion and 8) agreement. At the moment of negotiation the negotiator must be perfectly aware of his maximal and minimal goals. Key role plays the ability to solve conflicts, to find a compromise and to deal with cultural differences in case of a cross-cultural negotiation. Negotiation always includes the risk and probability of a conflict therefore it is necessary to protect friendly relationships consciously.

2. The influence of Chinese philosophies on the nowadays ́ Chinese population behavior, value patterns
While considering Chinese philosophies influencing nowadays ́ Chinese behavior, following three have to