Approach To Cultural Factors For The Sino-American Business Negotiation

Sino-American business negotiation is the key to the success of Sino-American business relationship. With the increasing interactions between these two countries, it is priory to examine the process of business negotiation clearly to find out how the process is influenced by other factors and in what way can it gain win-win success for both participants.Culture has always been the most active element that can exert great influence on the process of negotiation. Due to the divergent ways of living, thinking, and acting, there comes the different ways of communication style, especially the business negotiation. It is due to this kind of difference that misunderstanding sometimes the failure of negotiation occurs.So in this paper, the author from the perspective of two theories, analyzes in detail various elements embraced in culture such as personal relationship, time, uncertainty avoidance, power distance etc. to give some suggestions which are quite useful for negotiators both in China and America, aiming to reduce the cultural clashes in the negotiating process and to promote success.This thesis consists of five parts:Chapter one gives a general survey of business negotiation between China and America and points out that cultural difference is one of the main factors that causes the failure of their business negotiation.Chapter two introduces characteristics of culture and business negotiation respectively. Chinese culture is deeply rooted in Confucianism and Buddhism and that of America in Christianity. So harmonious relationship and convenient atmosphere is very important for Chinese negotiators while individualism and personal efforts for Americans negotiators. Business negotiation by nature is a kind communication that needs the participation of two or more parties.Chapter three explores cultural influences on business negotiation from Hofstede's three dimensions: individualism and collectivism; power distance; uncertainty avoidance the differences of which are possible to cause different styles form the two parties.Chapter four explores the cultural influences on business negotiation from Edward Hall's idea. Chinese negotiators view time as an endless cycle so they make a poly-chronic use of time. While American negotiators view time in a linear way, so they make a Mono-chronic use of time.