How to Navigate Hierarchy in Chinese Business Negotiations
Cultural Insight Tip:
The concept of hierarchy is derived from the Confucian idea of ‘order of seniority’ and reflects respect for experience and authority.
Respect for hierarchy on the surface is just as important as professional competence, so balance courtesy with efficiency.
Pre-Meeting Preparation
Always confirm the hierarchical structure of the Chinese team via email or intermediaries. Final decisions are often made by the most senior member – ensure your delegation’s rank matches accordingly.
Respect Titles & Seniority
Greet the highest-ranking person first and exchange business cards with both hands. Allow senior members to speak first during negotiations, and avoid direct disagreement with elders.
Strategic Seating
Follow the “face-the-door” rule – the most senior person sits at the center facing the entrance. If unsure, politely ask “How would you like us to arrange the seating?”
Appropriate Addressing
Use titles like “General Manager Zhang” or “Director Li” instead of first names. Maintain professional distance even with familiar contacts in formal settings.
Informal Bonding
Tea breaks and dinners are critical for relationship-building. Proactively pour tea for seniors and toast with your cup slightly lower than theirs.
Patience with Decision-Making
Complex issues may require multi-level approval – allow sufficient time. If told “We need to discuss internally,” respond graciously: “We look forward to your further updates.”
Suggestions
It is advisable to prepare business cards with titles in both English and Chinese before the negotiations and to establish an initial relationship of trust in advance through mutual acquaintances.
Remember that a modicum of humility and respect for hierarchy often accelerates the process of cooperation.
