Negotiation and Bargaining in Mandarin Chinese || Essential Phrases & Practical Tips
Thrive in Business Transactions with Our Top Tips and Phrases for Effective Negotiations in China🎯
Negotiating in China can be quite different from what you are used to.
Before you start to shoot questions and expect that Chinese people will offer what you expect, you must know that there’s a big difference in how to build trust between Chinese and Western cultures.
To succeed, you must understand the cultural nuances and how to engage with locals in their style of value exchanges. Knowing what they usually think behind the language and adopting specific strategies to reach agreements will make you a pro in Chinese business negotiations.
In this blog post, we’ll introduce some key terms and phrases to help you thrive in negotiations and bargain well for your next trip in China. Let’s get started! 👌🏻
Negotiation and Bargaining Skills || Understanding Hierarchy and Decision-Making
Negotiation and Bargaining Skills || Building Relationships and Trust
Negotiation and Bargaining Skills || Etiquette Tips for Effective Negotiation in a Chinese Business Context
Negotiation and Bargaining Skills || Key Words and Phrases for Bargaining
Negotiation and Bargaining Skills || Reaching Agreements
Negotiation and Bargaining Skills || FAQs
Negotiation and Bargaining Skills || Understanding Hierarchy and Decision-Making
Because of China’s thousand-year history, the traditions of respecting the hierarchy are deeply rooted in business culture.
The seniors at the top gain the position with a lot of experience, relationship building, and understanding of contexts. Decisions are made from the top, and information isn’t always shared openly.
👉🏻 So, be mindful when addressing the senior leaders. There are always opportunities to find more insights.
Maintaining Face and Avoiding Confrontation
Another fact of the hierarchy culture is 面子 (miàn zi). Respecting the order in the hierarchy is giving everyone 面子. That is critical in Chinese business settings.
The main thing is to avoid direct or strong confrontation, especially in front of the top seniors in this hierarchy. This 面子 is the public image of how people value their authority.
If you happen to lose your temper and hurt someone’s 面子, even unintentionally, it will result in a loss of trust and, therefore, break the deal.
Find out more about 面子 (miàn zi) in our latest post down here 👇🏻!
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Negotiation and Bargaining Skills || Building Relationships and Trust
Relationships, typically referred to as 关系 (guān xì), are super important in negotiations. Trust is a big part of it. But 关系 has many more nuances besides trust.
Trust in Western cultures can be built solely on reliable quality or talent. However, on many occasions in China, you often need more than that to maintain a relationship with a person.
There are several facets, such as:
人情
rèn qīng
A reciprocal favor exchange
Spend time connecting and offering something initially, even if it’s unrelated to the negotiation.
中间人
zhōng jiān rén
A middleman
Develop your network as much as possible with the locals in your business. Sometimes a deal is made just because you share a common friend or partner.
感情
gǎn qíng
Emotional attachment
Don’t assume there’s no emotional aspect in business. Chinese culture values personal connection. So be mindful to also connect with potential partners in any personal detail if possible.
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Negotiation and Bargaining Skills || Etiquette Tips for Effective Negotiation in a Chinese Business Context
Be mindful of these necessary gestures before you enter a negotiation in China:
| ✅ Pay attention to government policies and regulations. Sometimes, one small change in the macro environment can flip your work upside down. |
| ✅ Avoid direct confrontation at disagreement but do expect very hard bargain. Don’t be off guard. |
| ✅ Be aware of the hierarchy. Negotiations are usually carried out in large groups. Address the top seniors, and then follow the ranking down. |
| ✅ Pay attention to the implicit ‘No’ in an answer. Chinese don’t like to offer direct rejection. Sometimes not showing affirmed interest is the local way to reject. |
| ✅ Be prepared for certain back-and-forth tactics. As Chinese people don’t like to show direct confrontation, they reveal information in parts, show interest elsewhere or emphasize your relationship to gain favour in bargaining. |
| ✅ Don’t push too hard for an answer immediately. Sometimes the agreement is set to be flexible. Be patience on the process to confirm on a set deal. |
| ✅ Also be prepared for negotiations after you reach an agreement. Show that you’re flexible instead of a blunt no. Keep the relationship ongoing. |
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Negotiation and Bargaining Skills || Key Words and Phrases for Bargaining
Chinese are used to bargaining, even on the listed price. Sometimes, it’s even a playful act to build a relationship during the negotiations.
Don’t be scared if the Chinese come up right at you with these phrases. Learn them so you both can start a fun bargain.
太贵了
tài guì le
Too expensive
This is a common phrase to bargain even if you don’t think it’s expensive. Why not try and test if it can be cheaper?
便宜一点
pián yí yī diǎn
Can you lower the price?
Learn this phrase and use it as commonly as saying hello when buying in China:
我们考虑一下
wǒ men kǎo lǜ yī xià
We’ll think about it.
This is a helpful phrase to prompt the seller to lower the price.
Say the phrase as you walk away with a face that doesn’t care that much. Then, wait for a lower price. It works most of the time.
这是我的底价
zhè shì wǒ de dǐ jià
This is my final offer
A firm phrase to use when you can’t take any steps back further.
Don’t forget to share your business experiences in China here!
Negotiation and Bargaining Skills || Reaching Agreements
我同意
wǒ tóng yì
I agree
It’s very helpful to express agreement anytime during the negotiations. It’s better to show that you both are on the same page and push the negotiation further.
可以解释一下吗？
kě yǐ jiě shì yī xià ma
Can you clarify?
If you need further clarification on an agreement’s details, politely ask using this phrase. It sounds modest and shows your respect.
我们达成协议
wǒ men dá chéng xié yì
We have reached an agreement
The phrase to make the final call. Yay!
合同已经准备好了
hé tong yǐ jīng zhǔn bèi hǎo le
The contract is ready
It’s a strong signal that the deal is made. When you hear it or say it, it means the deal is official.
Chinese people will be happy to hear it as it shows your commitment.
Giving Presentations in Chinese || Essential Phrases and Cultural Tips
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Negotiation and Bargaining Skills || FAQs
What should I say in Chinese after the business partner offers their price?
Don’t accept the first offer. Counter with a lower price and say “太贵了 (tài guì le)” to ask for a lower quote. It’s fun to play back and forth before you settle on a price.
How important is relationship building in Chinese negotiations?
It’s critical. Building solid relationships, or “guanxi,” is crucial to make your negotiations smooth and easy in the long term.
How can I build trust quickly with my Chinese counterparts?
The most important thing to remember is to be patient and friendly. You can share a meal, join a local gathering, and show genuine interest in the local culture.
What topics should I avoid during negotiations in China?
Avoid discussing sensitive topics like politics, human rights, or anything that might cause discomfort. Talk more about daily casual topics like travel, food, and your new experiences in China.
What’s the best way to handle disagreements during negotiations in China?
Remember, don’t appear as aggressive with direct Nos. Use indirect words to disagree while staying calm and being open to exploring. You can use phrases like “我们考虑一下 (wǒ men kǎo lǜ yī xià)” – “We will think about it”.
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