Interactions between individuals with different cultural backgrounds are vital in the international business environment. As a result, intercultural communication has developed significantly in this globalized world (Jonasson and Lauring, 2012). However, due to different issues and cultural differences, intercultural communication challenges often arise, making the negotiation process between organizations difficult. Several methods can be adopted by management to overcome or minimize these challenges. In particular, the purpose of this essay illustrates the main intercultural communication issues surrounding managers of European multinationals when taking part in sales negotiations with potential Chinese customers (e.g. distributors, Chinese agents). Management approaches that could be adopted to overcome these challenges will also be discussed. Communication is the exchange of information that depends on how individuals perceive, interpret and analyze a person's behavior (Adair, 2003). Communication is influenced by various aspects of human behavior and languages ​​which can be sent consciously or unconsciously. () As a result, messages sent and received between individuals do not always correspond to each other, which can easily give rise to misunderstandings. Intercultural communication is the increasingly complex interaction between two parties with different cultural backgrounds. Individuals working in an international business are immediately faced with challenges such as doubt, pressure and have a tendency to stereotype others from different backgrounds (EU SME, 2013). Specifically, challenges surrounding intercultural communication include language differences, cultural differences, and legal issues and… half of the paper… including cultural differences, language differences, and legal issues that present difficulties with which managers of European multinationals can negotiate. China. As a collective society, Guanxi and Mianzi are vital aspects of Chinese culture that require time and patience to build (EU SME, 2013). To reduce any misunderstandings and misperceptions when negotiating in China, European management must understand their own habits, particularly in relationship building and face management, as they are highly contextualized. Furthermore, 'silent language' should be considered as gestures and contacts presented incorrectly to Chinese customers can be disrespectful and inappropriate. Specifically, to conclude, managers of European multinationals must have the ability to adapt to the international environment and be skilled in interpersonal relationships with Chinese customers (Praboteeah and Cullen, 2014).