Know Your Chinese Negotiators: Collaborator

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Are Win-Win deals in China possible? You will encounter many Chinese negotiators who appear collaborative -- but you have to be on your guard. When doing business in China, collaborators are you …

Are Win-Win deals in China possible? You will encounter many Chinese negotiators who appear collaborative -- but you have to be on your guard. When doing business in China, collaborators are you greatest hope - or worst nightmare.

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  • In the US – calling someone “passive” is very insulting. In China, it can go either way.Passivity can be a positive action

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  • 1. Chinese Negotiating Styles:the CollaboratorChinaSolvedSpring 2013Property of ChinaSolved. All RightsReserved. Copyright @2013
  • 2. Negotiators all fall into1 of 5 categories, orTYPES.Property of ChinaSolved. All RightsReserved. Copyright @2013
  • 3. 5 Negotiating Styles• Competitive• Compromising• Accommodating• Avoiding• CollaboratingProperty of ChinaSolved. All RightsReserved. Copyright @2013
  • 4. Negotiating StylesYourBenefitHis BenefitCompetitiveAccommodativeAvoidingCollaborativeCompromisingProperty of ChinaSolved. All RightsReserved. Copyright @2013
  • 5. Collaborative negotiatorsare your greatest hope andyour worst fear in China.Property of ChinaSolved. All RightsReserved. Copyright @2013
  • 6. This is what we all look for inChina.It’s the basis for everyWestern-Sino JVProperty of ChinaSolved. All RightsReserved. Copyright @2013
  • 7. Good News and Bad NewsProperty of ChinaSolved. All RightsReserved. Copyright @2013• A true value-adding partner canopen doors and supply vitalmarket information.
  • 8. Good News and Bad NewsProperty of ChinaSolved. All RightsReserved. Copyright @2013• Chinese negotiators know you want aWin-Win partnership and will use thatas leverage to get access to yourtechnology and IP.
  • 9. Warning• Win- Win is a product, notan action plan.• Not default setting in China.Property of ChinaSolved. All RightsReserved. Copyright @2013
  • 10. When Collaboration Works:• You Add–Technology–BusinessMethods–Brand–IP–Management• He Adds–Local knowledge–Contacts & network–Regulatory compliance–Market access &distribution channels–Operations &InfrastructureProperty of ChinaSolved. All RightsReserved. Copyright @2013
  • 11. The Plan: 2+2 = 5• Collaborators add value.• This is the rationale behind everySino-Western JV ever proposed.Property of ChinaSolved. All RightsReserved. Copyright 2013
  • 12. The Flaw in the Plan• Win-Win & 50-50 control are not natural.–Chinese law doesnt protect (one chop torule them all)–Custom doesnt support 50-50.–Goals usually encourage cheating.• You want to go home.• He wants you to stay home -- and leave yourbest stuffProperty of ChinaSolved. All RightsReserved. Copyright @2013
  • 13. The Win-Win Joke•What does “Win-Winmean to a Chinesenegotiator?–I win now–I win laterProperty of ChinaSolved. All RightsReserved. Copyright @2013
  • 14. Red FlagRemember –Conflict favors the hometeam.Hes the home team.Property of ChinaSolved. All RightsReserved. Copyright @2013
  • 15. Collaboration in NegotiationCollaboration behaviors inChinese negotiation:–5 Tactics–1 StrategyProperty of ChinaSolved. All RightsReserved. Copyright 2013
  • 16. Tactic 1 – Fake Bosses• Fake decision-maker (theirs)• Real concessions (yours)Property of ChinaSolved. All RightsReserved. Copyright @2013
  • 17. Tactic 2 - Money Changes Everything• Things start well and conflict occursafter the business is a success.–Sometimes accidental–Sometimes intentional• You are sexier when he is dumber• Money changes everythingProperty of ChinaSolved. All RightsReserved. Copyright @2013
  • 18. Tactic 3: TIC. This is China• Collaboration is a cultural variable–Your view of “50-50” collaborationand his may differ significantly.–You have to set benchmarks aboutequal division of labor – and profit.Property of ChinaSolved. All RightsReserved. Copyright 2013
  • 19. Tactic 4: Timing Imbalance• Intentional timing imbalance.• To achieve Win-Win collaboration, youhave to deliver value before they do.Property of ChinaSolved. All RightsReserved. Copyright @2013
  • 20. Tactic 5: Chinese Trust andWestern Due Diligence are notCompatible• Trust =/= due diligence• Once you have established a Win-Winframework, you start moving in opposingdirections.–He expects trust.–You expect transparency.Property of ChinaSolved. All RightsReserved. Copyright @2013
  • 21. Strategy: Bait and Switch• Strategy - Bait and Switch.• They know what you want andwhat you are looking for.Property of ChinaSolved. All RightsReserved. Copyright @2013
  • 22. Strategy: Bait and Switch• Chinesenegotiators aregreat at lettingWesternersconnect dots.• Collaboration andtrust will be youridea.Property of ChinaSolved. All RightsReserved. Copyright @2013
  • 23. Final WarningBeware of partnerswho move too fastwhen negotiating inChina.Property of ChinaSolved. All RightsReserved. Copyright @2013
  • 24. About Andrew Hupert - Author• 10+ years in China,– 3 in Taiwan & HK• Principal at ChinaSolved• Specialist in US-China Negotiation– Corporate training, consulting, andproject management• Publisher of ChinaSolved.com andChineseNegotiation.com• Author – Guanxi for the BusyAmerican and The Fragile BridgeFull list of publications andslideshows available onwww.AndrewHupert.comProperty of ChinaSolved. All RightsReserved. Copyright 2013
  • 25. The Fragile Bridge• Conflict Management inChinese Business .• Building relationships iseasy – maintainingthem is hard. Learn todo it right.• Available on Kindle,iBook and all major e-formats.Property of ChinaSolved. All RightsReserved. Copyright 2013
  • 26. Thank YouAll Rights Reserved. Copyright @2013.Property of ChinaSolved
  • 27. Contactwww.ChinaSolved.comwww.ChineseNegotiation.comLinkedin: China SolvedYouTube Channel:www.youtube.com/Chinasolved