Effective Chinese Business Negotiation Tips

Effective Chinese business negotiations begin with having the best information possible so you can get the best deal, whether you are looking to purchase products or looking for Chinese business partner to help sell your goods. You need to do your research, understand the negotiating practices of the Chinese and be prepared to work with a partner in the region that will help you get the most out of your business venture in China.

Your research into working with Chinese businesses should be as thorough as possible. This means understanding the history of their business, who their clients are, the prices that they sell their goods and any other important information to help you fully understand who you may work with. By arming yourself with this information you can now progress to the next step of engaging in Chinese business negotiations to look for the right company for your business needs.

The Chinese are a remarkable people who have embraced capitalistic business practices with fervor unlike most other places in the world. Thus, they may be mistaken by Western business leaders as having a similar management structure and negotiating practices. This cannot be further from the truth. As with Western business practices and negotiations, these skills stem from the collective history of the region that people running the business is familiar with, which means that a person from the USA will negotiate with another business in a slightly different manner than someone from Australia or Great Britain.

Chinese business negotiations have a number of interesting differences that many Western business leaders are simply not familiar with and do not understand which leads to much consternation and strife depending on the seriousness of the negotiations. When looking for Chinese business partner to work with, you need to be aware of a few of their more unique negotiating tendencies.

One of the most common is the non-negotiating tactic where they avoid direct negotiations in the first place. While they might have underlings carry out some negotiations, no real decisions are made. This tends to be a test of the seriousness of your business skills and intentions, so the best tactic is to be patient and simply re-affirm your position until the Chinese business leaders start engaging seriously.

Another common tactic is known as the “big sale” where they offer their products at a much reduced rate, yet in reality they jacked the prices up considerably beforehand. Your research should reveal the actual price they sell their goods for so any large increase should be noticeable. Still, it is surprising how many Western business leaders get taken in by this rather common tactic.

The final popular Chinese negotiating tactic is the “big deal” where a lot of promises are made and seeming agreement is at hand yet no real commitment is actually made. You need to be careful listening to their promises and simply focus on settling one issue at a time, even if it begins with the small ones first. Get them in writing and then work your way up.

Finding a good Chinese business partner takes research, patience and knowledge of their negotiating skills to find the one that works best for your business.

Negotiation Skills – How to Increase Your Sales

Nearly everyday of your life you are negotiating for something, usually many times a day. And that doesn’t include the sales negotiations you participate in as your job.

Yet, despite the fact that you spend so much time in negotiations, during the big negotiations, many salespersons don’t employ the effective skill set and tactics that they use in other aspects of their lives.

For example, have you driven a car today? If so, you are negotiating decisions throughout the entire drive. Using your turn signal is a nonverbal negotiation with other drivers about where you want to turn your car. At every stop sign, you were part of a negotiation as to who should be given a turn to go ahead through the street corners.

By learning what works as a small negotiations, you can learn what works at the bigger discussions and negotiations.

There are three key steps in negotiation skills.

1. Know your sales goals -

It’s very difficult to obtain what you want if you don’t know what it is or why you want it. For example, knowing where you want to go in your car provides the focus you need to get to where you are going. And despite this basic first step and how simple it may seem, many salespersons enter into the larger negotiations without knowing what it is they want and why. Remember, the sales process begins way before you have your first conversation with the potential client.

2. Do your research -

Justifying the price for anything from a new vehicle to a corporation becomes much easier if you can show the buyer the item is worth every penny they are about to spend on it.

This means you must be responsible for the research your potential clients don’t have time to do. By doing this, you make the decision to buy your product or services easy for them. Provide them with as much information as you can to justify why the decision you want them to make is the right one. Many potential clients are waiting for a salesperson to bring them an actionable solution to their problems. Do yourself and the potential client a favor, do all the legwork ahead of time. If all they have to do is sign on the dotted line after hearing your presentation, you are more likely to get that signature.

Live Trading – Volatility Presents Big Opportunity in Yen and Euro

We looked at the B Pound recently and gave you areas to sell if you did you made a huge profit with low risk and we have done separate report on the BP – here we want to look at the Yen and Euro and low risk /high reward trading scenario.

Lets look at these currencies and what the week ahead holds.

Japanese Yen

The trend against the dollar is down and has been for years – the recent rally is simply un-winding of carry trades.

This means the JY should resume its down trend and the recent volatility is presenting a low risk high reward opportunity. Take a look at a good free chart service such as futuresource.com and you will see for yourself.

Prices have spiked and are outside the top Bollinger band and resistance lies at 0.85.50 and 86.00. The key to looking at the short side is a change in price momentum.

Pull up the Relative Strength Index which has peaked at just above 70.00 and is losing momentum and also check the Stochastic which is set to cross with bearish divergence.

Look for a reversal day and momentum to turn bearish target on both indicators – target is the mid Bollinger band.


The euro is in a long term uptrend against the dollar and the recent correction (like the one we looked at in the British Pound) is simply the huge speculative long position being washed out and this looks to be almost done.

The key near term support is 1.36 (bottom of Bollinger band and July Lows)

Again you need to look at the RSI and stochastic and watch for a change in price momentum.

At present there is NO signal to buy RSI continues to fall and the stochastics are deeply oversold.

In Both Currencies

Do not try and predict WAIT for the confirmation on the charts backed up by price momentum.

Trade the reality of price – NOT your opinion (or the opinions of others) stay focused on the charts and stay disciplined.

There are of course conflicting news stories about what happens next – by focusing on the charts and trading the reality of a shift in price momentum, you will be trading the odds and that’s what any currency trader needs to do.

The long term trend is down in the Yen and up in the euro and while we could see a major trend change, this looks like a correction in both currencies and the longer term trends up in Euro and down in Yen will re assert themselves.