http://chinasolved.com/2012/01/comparative-negotiating-styles-101-us-and-europeans-in-china/ Europeans are diplomats.  They build networks and exploit niches. Chinese are manipulators.  They like to build relationships – often from a

position of apparent weakness – and later shift the balance of power to their advantage.

Europeans in China have the opposite problem.  Natural networkers, Europeans are quick to make concessions to build a connection. This pliability on key issues is often interpreted as a sign of weakness, and once the conceding begins it is difficult to put on the brakes.  Chinese negotiators may feel like they are driving the relationship and will become more competitive and demanding.  Europeans will do more deals, but at less advantageous terms than might be possible.

Europeans see themselves as occupying a position midway between Chinese guanxi-builders and American dominators, but Chinese see them as American-lite.  Europeans in China do build better networks, though, mainly because they plan for and invest in them as a matter of strategy.  They send younger people over for longer postings.  Americans would rather buy or bully than build, and tend to make up a plan as they go along.  They see themselves as nimble and resourceful, while the Chinese tend to see them as unprepared.

The key to successful Chinese negotiation is to start out cordial but non-committal.  As the Chinese say, it is best to have many girlfriends but no wife. Americans could learn from the Europeans, who try to put Chinese on their back foot by committing early to a relationship in principle, but being vague about timetables and promiscuous about relationships.