Cultural Barriers to Business Negotiation- page 7 The effect of cultural barriers on negotiation way Chinese and western way of thinking is different, Chinese way of thinking is a subjective on which more emphasis humanity; Western thinking is objective that they like state of nature, doing things have their own principle, paying attention to the subjective law and science technology, claims to rational and effectively to deal with problems and they don’t like to build relationship before doing things. In the negotiations, if the Chinese and western don’t realize that, the Chinese may think westerners callous and too seriously, while the westerners may think Chinese are too loose and not seriously enough to matter. Finally both sides will think no sincerity each other. For example, an America company about joint venture issue talks with Chinese company. The both sides signed a series of cooperation letter of intent in Golden Lustre Hotel in Shenzhen after the first round of talking, it is called Jinbi protocol. After three years, due to the needs of development of business, both parties need to sit down to negotiations on relevant issues. The negotiations are not very smoothly that both sides can’t reach a consensus in many aspects. In order to solve the conflict, Chinese negotiators stressed so many time that is both sides should adhere to the principle of “Jinbi protocol”. The U.S representative Mr. Hawker Rove was very angry and queried “shut up”, these things was signed up three years ago, we need to know is current situation. Capital, technology development level and Chinese market must be changed in the past three year. We need to know is the current level, so why don’t stop adhere to the letter of intent so called “Jinbi”? ”Chinese negotiators have heard that were so angry to asked: “so you are ready to betray the agreement?” Mr. Hawker Rove restored: “that is not a contract, that is just a paper statement.”Then both parties talk bogged down that the both do not intend to concessions and face the result was breakdown the negotiation. After considering the basic of cooperation, American accepted Chinese proposal that is to seek a third party to mediate. After the third party of mediation, the two sides back to the negotiation table and finally reached an agreement on cooperation issue, singed the contact.