As Terry Hird began his Google talk, the first thing that popped into mind was how very different American and Chinese cultures are. This first thought on the issue was later echoed in Hird’s statement about negotiation being in one’s DNA – that “It’s the way they’re raised, it’s their culture.” Furthermore, Hird’s emphasis that he is an “American-born American” also underlines the fact that the root problem or challenge in American-Chinese negotiations is that dramatic difference in culture. Hird points out that many problems and pitfalls related to negotiation processes rest not in the content of the negotiations but rather in the failure of the individuals or organizations involved to consider “the process of the negotiation.”
The differences in language reflect these differences; as noted in the video, tan pan translates to “discussion or making a judgment.” This suggests less about winning, which American culture seems to stress in these processes, and more about something that is shared and beneficial for both parties involved. This is a reflection of China’s “high context culture” where “there is more focus on taking care of the group rather than individual interests,” as compared to America’s “low context culture” where they “see themselves as individuals” (Akgunes & Culpepper, 2012, p. 192). This also seems to manifest itself in certain attitudes regarding the importance of cultural understanding.
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"Negotiations with the Chinese: A Reflection".
Hird reports that many of his clients are foreign companies wanting to negotiate with American companies; these foreign companies want to understand the American companies better and, theoretically, have more productive and mutually-beneficial negotiations. This does not seem to flow in the other direction; that is, fewer American companies seem to reach out trying to understand the cultures of the markets into which they are attempting to penetrate. This failure to understand or appreciate “the process about negotiations are done overseas, and I think that is to their disadvantage,” according to Hird, and I would have to agree with that.
- Akgunes, A., & Culpepper, R. (2012). Negotiations between Chinese and Americans: Examining the cultural context and salient factors. The Journal of International Management Studies, 7(1), 191-200.
- Hird, T. (2006). Comparing American and Chinese negotiation styles. Google TechTalks. Retrieved from https://www.youtube.com/watch?v=LMsatIxZbOk
