The East Asian language of business differs from one culture to another. The main thing that China and Japan share in their negotiation tactics is the lack of a direct answer. Chinese and Japanese firm representatives neither encourage their counterparts to be too straightforward nor willing to give a clear-cut answer themselves. Especially if they want to decline, or the offer does not represent their interests enough. Both Japanese and Chinese cannot be entirely trusted when they answer ‘yes’ to the proposal: they often respond positively to avoid being awkward or rude towards their counterpart; moreover, they expect the latter to act in a respectable manner. The formality and appropriate expression of respect is essential for the meetings with Chinese and Japanese associates. For example, in Japanese culture, there is a strong hierarchy of age; therefore, it is expected to focus the attention on the oldest member of the business team. It does not necessarily mean that this person holds the highest position in the company; thus, it is essential to understand the social cues depending on the context of the situation.
Even though time is universally understood as a precious resource, Japanese and Chinese people in business are likely to conduct time-consuming meetings. Their incredible attention to detail and meticulous attitude forces the counterpart to show patience and flexibility during the negotiation. Moreover, their respect for formality takes extra time, which might be challenging for people who are used to conducting business quickly. For example, members of the Japanese team tend to present the arising issues in a consequential manner, one point after another, rather than immediately announcing all of their concerns. Chinese type of negotiation slightly differs from this approach: they are likely to appoint two meetings instead of one, where they discuss technicalities and then talk about the financial aspect of the deal.
However, there are less subtle differences between the two cultures in negotiation. While the Chinese have a tendency to switch their decision and change the price or the terms of the deal even after it has been signed, the Japanese do not like to bargain over the price. Therefore, it is more favorable to wait patiently until Japanese team members take the initiative to compromise. The best strategy is to reveal as little as possible without disrespecting the counterpart.
If the Chinese express their negotiation tactics verbally, the Japanese usually rely on their physical gestures to respond. If the meeting is not on their counterpart’s territory, Chinese businessmen may ask about their departure to push the concession to the last minute, so the opponent is forced to take a less favorable deal. While both Chinese and Japanese associates do not like to decline openly, the Japanese tend to express it non-verbally. For example, politely tilting their head or placing their hand up to the face and rapidly waving to display their discomfort with the terms of the deal.
In conclusion, there are many differences and similarities in how Chinese and Japanese business representatives conduct their negotiations. They value formality in the process and are very process-oriented. They avoid confrontation to decrease the chances of conflict and do not tend to express their thoughts directly. However, the Chinese do not find it offensive to bargain about the deal’s price and terms, while the Japanese will take extra time to come to the final decision on the pricing before announcing their offer.