Conclusions. Having tried to describe the process of project sales negotiation between Western firms and their Chinese counterparts we reveal that the common course of negotiation implies its specifications that have not been known before for investors.
The issues that are most sensitive in the negotiation process are the equity shares management control. These two issues have also been a great concern while investing to China since the Westerners do usually rely on Chinese counterparts when dealing with the local governments and environment. But it is not so. The control over the process of management should be in their hands. Chiefly, the Chinese want a local chief executive while foreign firms want to send their own staff.
In most the deals in China, buy-back and export is the matter of lengthy period with many stages. While foreign firms are entering China due to the size of its market, the Chinese, in its turn see the foreign firms as the source of technology and foreign exchange earnings.
The pace of negotiation in China is very slow. The presentations are formal and orderly. The third part such as government still plays a major role in the negotiation process, since the people there are still collective minded and it plays a large role. RECOURCES 1.Easson,A The incentive for Foreign Direct Investment in the People s Republic in China. Paper presented at The International Conference on Management in China Today, June 20-21 ,1988 Leuven,Belgium. 2.Ingmar Bjorkman The management of human resources in Western Companies in China To match or not to match with the environment .1992.Stockholm. 3.Henrikki Tikkanen. Marketing and International business.1998.Turku. 4.Kerin. A.Rodger Peterson. Robert.
Perspectives on Strategic Marketing Management. 1983.Boston.