Business Negotiations in the New China: same same but different

Abstract: In order to succeed in a business negotiation it is of great importance to
negotiate with the same set of rules. As the world grows smaller this task
grows progressively more difficult. Different cultures have different
rules. Over the last years, China has been given a lot of attention in the
matter of economic and international interest. China experts seem to
flourish and there is a great interest to understand and learn the Chinese
way of doing business. However, the last decades many western companies
have already become well established in the Chinese market. Moreover, the
concept of the “New China” is a new but increasingly familiar term among
western interests. But what is the New China? Does it mean that the old
Chinese traditions are put aside? Is it perhaps a western world that the
West meets when they enter the Chinese business world? This essay
approaches this topic – What is the New China and how does it effect
business negotiations. The research question has been approached by methods
of literature studies and interviews. The research involves business-to-
business negotiations and is based on information from Swedish companies,
established in the Chinese market more that 20 years. The results show that
there is a shift in the values that drive the Chinese mindset and thereby
also affect the negotiation process in the New China. However, one must
keep in mind that the New China is limited to certain urbanized areas, and
to which degree it has been exposed to western standards. All of this said,
one crucial point is that if anyone wants to succeed in a Chinese business
relation – be flexible.