Deal with your favorite supplier

Remember that business interactions with Chinese exporters are governed by Chinese culture and customs, and different negotiation skills and tactics may be required. Some things to keep in mind when negotiating with Chinese suppliers include:

The focus is on relationships. Chinese do not do business with companies, they
do business with people, and each business deal creates a new relationship
with the other party.
Chinese exporters are therefore not likely to jump into a
deal until they have had the opportunity to get to know you a little. Reliance is on moral influence, not legal practice. Chinese executives tend to
rely more on a party’s moral obligation, rather than its legal one. This does not mean you should ignore the wise business practice of having a signed contract, but you should let your desire to get a signature on a contract take a back seat to building a trusting relationship where each party will feel morally obligated to perform, even if they did not have a signed contract. Hierarchy is important. Shaking the hand of a low ranking executive first or calling a high-ranking executive by his first name can jeopardize interpersonal relationships and affect a Chinese executive’s willingness to negotiate. Pay close attention to how executives address each other and follow their lead.

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