Cultural Factors in Sino—US Business Negotiations

劉宏玉++白銀璐

【Abstract】The United States and China are two main leading economies in the world， and the trade volume continues to increase in recent years. Meanwhile， Sino-US negotiations are increasing. However， trade negotiations are not necessarily successful to some extent. There are many factors that will influence the smooth conduct of a business negotiation， among which the cultural differences between the two sides often affect the values of two negotiating teams . Therefore， learning the differences between the two countries in terms of rituals， methods and languages will be extremely meaningful to the parties involved.

【Key words】Business Negotiations； Cultural Differences； Chinese and US Values

1. Introduction

In business activities， its not enough just focusing on understanding business terms and being fluent in English expression， cultural factors in cross-cultural communication should also be paid more attention. Therefore， we need a correct understanding of cultural backgrounds of different countries and regions， and develop a reasonable negotiating strategy so as to avoid the emergence or intensification of the culutural conflict， and eventually win success of the negotiations. United States and China are large trading partners， and business negotiations play an extremely important role in business deals. Learning differences， especially cultural differences， will bring mutual benefits to both parties concerned in the two countries.

2. The Importance of Understanding Cultural Differences

2.1 Understanding Cultural Differences Makes Negotiations Successful

It is vividly said that culture is the collective mind programming of a class of people who are different from another. Culture is embodied by human behavior. Cross cultural communication plays such an important part in international business negotiation， and culture is reflected through mens behavior which restricts mens understanding of foreign culture. People who are sensitive to cultural differences by using their own cultural style to evaluate their behavior， points and customs of people from different cultures， will often succeed in business negotiations.

2.2 Misunderstanding Cultural Differences May Lead to Conflicts

Culture limits peoples understanding of foreign cultures. Lack of sensitivity to cultural differences in the use of unique cultural models， based on the evaluation of different cultures of peoples behavior， opinions， and customs often leads to cultural conflicts. Negotiators from different cultural backgrounds have different communication styles， values and ways of thinking. Lack of understanding of the cultural differences， the lack of preparation and improper treatment will increase the difficulty of business negotiation. International business negotiation is an important part of business activities， and the two sides are negotiating on the business issues of common interest to reach consensus.endprint

3. Cultural Differences in Sino-US Business Negotiation

3.1 Different Styles of Business Negotiation

As the two countries differ greatly in values， socio-political economic system and cultural traditions， the two countries also have their distinct styles of business negotiation. American tend to respect law， time， and information， and advocate immediate negotiations；while Chinese people worship patience and subtle decision-making， and advocate the principle of collective frameworks.

3.2 Different Attitude towards Complex Negotiations

Americans tend to dismantle complex negotiations into a smaller case. Major task is split into a series of small tasks： for instance， propose a price， packaging， delivery and so on. For Americans， a final agreement is an agreement， and that is all. They focus more on interest， instead of demands. The adverse contrast is the Chinese way of thinking， which adores a holistic approach.

3.3 Different Concepts in Decision-making

Chinese people hold a strong collective concept and emphasize group responsibility. But the final decisions are made by an individual， and even an outsider who did not participate in the negotiation has the right to decide simply because he is the boss. Hiarachy is very important. A more complex and difficult problem may occur when the negotiations run poorly. In US culture， people who are on the spot have the right to decide where negotiations go. People do not necessarily need permissions from the boss.

3.4 Different Views on Signing Contracts

Americans want to end the negotiations by making a clear statement in the contract. They believe that once they have a written contract， a negotiation has come to an end. American culture emphasizes objectivity and equality. Therefore， they often rely on strict contracts to protect their rights and obligations. Thus， the relevant contract items will become detailed and lengthy. The signing ceremony of the US negotiation is not extravagant， and some people signs contracts via e-mail. After the signing of the contract， there will be fewer follow-up communications such as letters， gifts， or visits.

3.5 Different Ways of Establishing Relationship

Contrary to American way of establishing relationships， Chinese people are more realistic. Even after the signing of contract， Chinese people will often arrange ceremonies and banquets， which shows hospitality and contains implied meaning. In China， “Acquaintance” and “relationship” have their own connotation and significance. Once the relationship has been established， the two sides would become acquaintances or friends， thus， they will pay more attention to the others benefits and will be more generous on certain issues. They will trust and tolerant more of their counterparts. The Americans are quite different. They do not pay attention to cultivating their relationship， but try to separate the business from friendship. They solve problems through legal means， therefore， it is not uncommon to see lawyers come forward to solve the problem， which appears stiff and not flexible in the eyes of Chinese people. Once a contract is signed， Americans will attach great importance to the legal nature of the contract， and they believe both parties should abide by the articles and terms of the contract.endprint

4. Measures to Overcome Sino-US Cultural Obstacles in Negotiation

4.1 Accept Different Cultural Behavior

Cultual obstacles do exist， so we should accept different cultural behavior to successfully reach consensus. On the other hand， accepting different cultual behavior doesnt necessarily mean simply adapting or copying others cultural ideology and methods， but striving to understand the other party and look upon the issues in the shoes of other party， thinking more about the social and cultural background. We should also realize that foreigners are different from us on emotions， motives， beliefs and points of views. What are generally accepted in our own country does not necessarily work effectively in other countries.

4.2 Observe Different Cultural Criterion and Social Norms

We also have to keenly observe others cultural criterion and social norms. Before signing contacts with foreign businessmen， we should learn their customs and taboos as much as possible and attempt to know what kind of people they are， how they perform in business negotiation to avoid making the other party unhappy， thus making sure that the business negotiation runs smoothly.

4.3 Respect and Understand Cultural Differences

In the international trade and business activities， to achieve the goal of cross-cultural communication， we must first learn to respect others and treat others fairly. Respect others， thoroughly understand the personality of others， beliefs， values， customs and other cultural differences. We should also show respect to the views and interests of others. Coming from different cultural backgrounds， people around the world will certainly possess different views， and show their distinct behavior. We should not judge them by using our own culture as criteria to evaluate a foreign culture， peoples behavior， and more importantly， we should not impose our own views and behavior on others. In order to achieve successful communication and attain successful cooperation in the economic field or business negotiations to reach a consensus， both partis should be aware of their cultural differences and respect the interests of different parites， although reaching a complete consensus is sometimes extremely difficult. Therefore， the consensus does not require both parties to agree totally in opinions， views and understanding， but to require both parties to seek common ground while reserving differences on minor issues.

5. Summaryendprint

Business negotiations has been deeply marked with the imprint of the dinstinct domestic culture. Although the outcome of negotiations is commonly based on objective economic interests， but the negotiators as the subjective factor also plays a decisive role with great significance. Therefore， the conduct of international business negotiations should be preceded by careful study of the cultural background of the other negotiators and their characteristics. Meanwhile， adequate preparation is also necessary in strengthening their bargaining power， thus making the best use of cultural factors to achieve the success of the negotiations.

References：

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作者簡介：

劉宏玉，吉林長春人，副教授，研究方向：商務英語。

白銀璐，大連財經學院2014級商務英語專業學生。endprint