An Examination of PRC Business Negotiating Behaviors.

The current rapid economic development in mainland China strongly demands that the world understand the People's Republic of China's (PRC) negotiating behaviors to ensure a successful business transaction. This study examined the PRC business negotiating behaviors by interviewing 16 Hong Kong businesspersons who have experiences in doing business with the PRC Chinese. Questions regarding the most important cultural factors that affect the PRC business negotiations, problems encountered, and guidelines for reaching a successful business negotiation with the PRC Chinese were asked. Overall, participants identified face, relation, harmony, reciprocity, and credibility as the five most important cultural factors that affect PRC business negotiations. Guiding principles based on Confucianism and strategic applications from other schools of thought form the two faces of the PRC Chinese business negotiations. The interaction and integration of the two forces complicate the process and understanding of Chinese social behaviors. The guidelines for a successful business negotiation with PRC businesspersons include: (1) build a relationship before the negotiation; (2) remember courtesy requires reciprocity; (3) be patient and polite; and (4) develop a long-term relationship. Most existing studies tend to focus on the impact of Confucian traditions, which leaves an unexplored space for research. To understand business negotiating behaviors of the PRC Chinese, future research should explore the strategic aspect that originates from non-Confucian traditions. (Contains 1 table, 2 figures, and 36 references.) (NKA)