NEGOTIATION AND SINGING INTERNATIONAL BUSINESS CONTRACT SKILLS WITH CHINA PARTNERS
Negotiation and singing contract skills are crucial for a company when cooperating with their partners. In doing business with China, a country that has extensive trade with Vietnam, having these skills under your belt will help you to attain certain achievements.
1. Features of contract negotiation activities in business.
Contract negotiation is executed by at least two parties reaching an agreement on terms and conditions. Features of this activity are:
- Relationships within international trade contracts are likely to be regulated by the domestic laws and international treaties.
- Negotiations are governed by economic rules, business measurement, marketing, competition in the market and politics, and diplomacy among nations.
- Contract negotiation need to be versatile and adapt constantly because of the movement of the economy.
Contract negotiation happens on many platforms such as through email, telephone or face to face situations. This process incorporates below steps:
- Identify the situation, investigate the context, implementing measurement, and related issues that can affect the negotiation relationship.
- Plan: prepare all the information, programs, particular objectives that each party wishes to achieve in the contract, then practice applying negotiating strategies.
- Execution: negotiate and reach a mutual agreement
2. Signing international sales contracts
To safeguard agreement after negotiating, parties will sign a contract together. International sales contract is an important legal document, it specifies obligations and benefits of parties so it should be drafted accurately, completely and validly.
Principles of sales contracts that parties should know are equality, free will, bilateral agreement, and compliance with law and international practices.
Forms of contract signing: direct or indirect signing, written in writing or by email, fax, telegram,…
The time and place are vital elements and should be factored into signing an international sales contract. Time of signing a contract shows partnership between two parties to be established, obligations will arise afterwards. And if there are disputes, signing location will be based on to consider which laws, treaties and competent authorities should be used.
Learn more about the rules and choice of law application to international sales contracts.
3. Negotiation and singing the contract with Chinese partners
Negotiating and contracting are important skills in international trade. So how to succeed, especially when cooperating with Chinese partners?
- Cognitive customs: The given information is often compared with the experience of the Chinese people. Research data and statistics will be noticed after this.
- Middlemen: Chinese don’t often have trust in strange people so negotiation can be implemented easier when you are accompanied with a third party or those who have often worked with them to mediate disagreements.
- Address: Call the partner by their name and title. This shows respect and their hierarchy.
- During the nagotiation process, you should try to listen to the partner patiently. Chinese people also often use loud tones or deliberately create tension, bringing up problems at deadline to exert pressure. What you need to do is keeping a cool head, avoiding rushing not to be caught small mistakes. At the same time, you need to show your empathy towards the other opinions.
- Time to negotiate: Holidays are very important to Chinese people. You should avoid these days so as not to bother them when they are spending time with their families.
- If meeting face to face: you should pay attention to the time, place and clothing. Always being on time to show professionalism. Try to dress neatly, politely, unobtrusively with less colors and accesories. You should also learn about your partner's culinary habits to choose the right restaurant for the meeting.
- Negotiating with the Chinese is usually a long process. You should start with intimate meals, the discuss will take place at the end of the meal.
- The Chinese pay attention to dates, so you should choose a good date to sign the contract.
MDCT Logistics has summarized the skills of negotiation and signing the international sale contracts with Chinese partners. Hope you will get useful knowledge in your work.
