1. Konfucijski institut Ekonomske fakultete v Ljubljani Confucius Institute descendants Selling to China & Business Negotiation Kong Zi ( )

2. Konfucijski institut Ekonomske fakultete v Ljubljani Confucius Institute Some General Points About Chinese Psychology (Distinctiveness of the Chinese psychology) Ingidenious of Chinese psychology Ones self and relatedness between the people (self Confucian thought is essentially relational – China, Japan, Korea and not in Hindu, Dao and Buddhist writings – Ho, Peng, Lai, Chan 2011) Role relationship (McAuley, Bond&Kashima 2002) Conceptualization of face ( Ting- Toomey 1988, Hwang & Han 2010) Guanxi relationship (Hwang & Han 2010) Relationship theory (Kwan, Bond & Singelis 1977) Socially oriented achivement orientation (Hau 2010, Yu 1966) East Asians think holistically while North Americans and Europeans think analytically. 2

3. Konfucijski institut Ekonomske fakultete v Ljubljani Confucius Institute Practical Business Observations While Selling and Negotiations in China Differences between Chinese and western business communication Fast developing, skillful local business community Established and demanding »middle class« consumer Hard driving Chinese buyer Specific characteristics of the Chinese business psychology 3

4. Konfucijski institut Ekonomske fakultete v Ljubljani Confucius Institute PRAGMATISM Legality Ethic Morality Pragmatism is one of the Chinese business approach. Legality goes first, the ethic & morality questions comes second. 4

5. Konfucijski institut Ekonomske fakultete v Ljubljani Confucius Institute Eagerness To Fight A commercial talk is not a dancing party but a fight. 5

6. Konfucijski institut Ekonomske fakultete v Ljubljani Confucius Institute Superior & Inferior Face and thin face Private conversation better than group discussion Personal talking better than public challenging Informal contacting better than formal criticism 6

7. Konfucijski institut Ekonomske fakultete v Ljubljani Confucius Institute A complicated way of thinking Chinese modesty Just so so, no details Overpraise A complicated way of thinking A wish of balance and connection of all elements: economic, social, company rules & hierarchy, and unknown elements Long speech with hiden information 7

8. Konfucijski institut Ekonomske fakultete v Ljubljani Confucius Institute The equality in the negotiation team Every delegation member has a full right express opinion or ask question 8

9. Konfucijski institut Ekonomske fakultete v Ljubljani Confucius Institute Curiosity Annoying habit Asking how much you paid for things Why? Curiosity Care about you A strong curiosity for your meeting materials Solution for dissemination: Leave the paper or CD rom in the table between the first break. 9

10. Konfucijski institut Ekonomske fakultete v Ljubljani Confucius Institute Optimistic approach Chinese manager is born optimist Keeping the smile Exploring the smallest, hopeless possibilities Calmly sayingDont worry, I know what to do. 10

11. Konfucijski institut Ekonomske fakultete v Ljubljani Confucius Institute Perserverance furious competion in a 1.3 billion inhabitants country: Daily fight for a bus seat, a place in a restaurant No body want to stop in the city traffic Fight for entrances to good universities Jobs in famous companies and government Fight like thousands of people crossing a single-log bridge at the same time 11

12. Konfucijski institut Ekonomske fakultete v Ljubljani Confucius Institute One step at the time Great Wall is made by hundred thousands chunks of stone A Chinese manager begins to solve the complicated problem by putting down the first stone. A Chinese saying: One step, one footprint. ( ) 12

13. Konfucijski institut Ekonomske fakultete v Ljubljani Confucius Institute Middleman At first: no third party involved A middleman (conciliator) comes in At last: smile with handshake Summary: Its much more polite to invite a third party especially if some differences arise. A Middleman 13

14. Konfucijski institut Ekonomske fakultete v Ljubljani Confucius Institute Breaking the opponent team Soft-way approach A discussion between the lunch Secretarys small verbal flirt Gerneral managers praising for your good job. Harder approach A direct call A face to face discussion Warning Promising reward Summary: dont step into the trap 14

15. Konfucijski institut Ekonomske fakultete v Ljubljani Confucius Institute Elusions Sudden disappearance means the answer is not ready Usual excuses for escape: Visiting deadly ill mother Just got a heart attack An urgent business trip to some exotic country Other old commercial tricks Summary: Wait until the last two minutes. 15

16. Konfucijski institut Ekonomske fakultete v Ljubljani Confucius Institute Company and personal sensibility The serious punishment to the traitor Summary: Dont touch the bottom line at very first time Take care of some furious reactions 16

17. Konfucijski institut Ekonomske fakultete v Ljubljani Confucius Institute Discount on discount The important impetus: fight for the price The price should be only lower Timing is very important-do not decide too fast Some concessional additions: Air tickets, free hotels, sightseeings Summary: Be tough during all negotiation days 17

18. Konfucijski institut Ekonomske fakultete v Ljubljani Confucius Institute Uncertainty till the end Control all hopes and dreams until the final end. Every change, modification, cancellation or misunderstanding is allowed When is the end? The signing of contact? (Maybe) Contract with the big, red chop? (Maybe) The final end is the money seated in your account. 18

19. Konfucijski institut Ekonomske fakultete v Ljubljani Confucius Institute Bosses in the back A group of negotiating Chinese managers are not including the real boss: Accountant Department leader Vice director Who is the real boss? Some one appears in the end. 19

20. Konfucijski institut Ekonomske fakultete v Ljubljani Confucius Institute Psychological games Non-verbal signs of distraction Yawing Loud talking and smiling Pointing to the foreigner Suffling the paper Having a nap Cleaning the throat 20

21. Konfucijski institut Ekonomske fakultete v Ljubljani Confucius Institute Guanxi (Connections) Connections is a huge resource covers every field Commerce Economics Administration Politics Connections in China are more complex and less visible Summary: Weaving your connection net before any step 21

22. Konfucijski institut Ekonomske fakultete v Ljubljani Confucius Institute Making friends on the banquet Taiji Soup Beijing Roasting Duck Ganbei (Cheers) 22

23. Konfucijski institut Ekonomske fakultete v Ljubljani Confucius Institute Thanks for attention! Prepared by Mr. Ljubomir Ulaga Designed by Mr. Kent Wu Q & A 23