The negotiations

Cultural difference is primarily blamed for the delay. The Chinese are communists. This means that they take time to build trust. They love relationships. The Canadians on the other hand put more emphasis on business.

Everyone is concerned about his own affairs. As a result of the cultural difference, the Chinese expected the Canadians to relate and enjoy fellowship before any business would be transacted. The Chinese wanted long term coordination. The Canadians on the other hand were only interested in business and nothing else. As a matter of fact, the Canadians wanted to close the deal and proceed to their own private tour of the great wall. They did not want any interference to their private live.

Company policies also played a part for the difference in expectation. The Chinese believe in consultation. The first negotiating team was composed of ten people. Only six of the ten came back for the second stage of negotiations. Perhaps they were doing their research before any decision would be made. They further needed a lot of clarification.

This is the business policy in China. The Canadians however wanted to seal the deal on the first sitting. They were even disturbed by the floated questions. The Canadians should have learned about business policy in China before they ventured out.