Chinese Negotiators: Long Term Partners or Short Term Opportunists?

Long Term Partners – Or Short Term Opportunists?Know Your Chinese Negotiating Counterparty

A Common Question:• Are Chinese negotiators long term planners – or short term opportunists?

A Common Question:• Are Chinese negotiators long term planners – or short term opportunists?• “I’ve heard that Chinese businessmen think about business in terms of decades or generations …”

A Common Question:• Are Chinese negotiators long term planners – or short term opportunists?• “I’ve heard that Chinese businessmen think about business in terms of decades or generations … SO HOW COME I JUST GOT DUMPED BY MY CHINESE SUPPLIER OR PARTNER?”

Chinese Dealmakers: 3 Options• Plan A: A long-term, win-win, mutually beneficial relationship .

Chinese Dealmakers: 3 Options• Plan A: A long-term, win-win, mutually beneficial relationship .• Plan B: A one-off, win-lose transaction that maximizes the gain right away.

Chinese Dealmakers: 3 Options• Plan A: A long-term, win-win, mutually beneficial relationship .• Plan B: A one-off, win-lose transaction that maximizes the gain right away.• Plan F… as in FAILURE. He invests the time, effort, and resources to develop a long-term relationship, but the deal is a failure and he gets nothing.

Chinese Dealmakers DO NOT LIKE PLAN F!!!• Your counterparty will switch from Plan A (long-term partner) to Plan B (one-off transaction) quickly and without warning.

Chinese Dealmakers: DO NOT LIKE PLAN F!!!• Your counterparty will switch from Plan A (long-term partner) to Plan B (one-off transaction) quickly and without warning. – He wants to recoup his time, investment and opportunity cost.

Chinese Dealmakers: DO NOT LIKE PLAN F!!!• Your counterparty will switch from Plan A (long-term partner) to Plan B (one-off transaction) quickly and without warning. – He wants to recoup his time, investment and opportunity cost. – As far as he’s concerned, it’s your fault for disappointing and/or betraying him.

What spoils the deal?• Somehow, you didn’t live up to your end.• There are 3 possible reasons:

1. Your product or service.• You or your product offering were found wanting from the very first encounter.• Not every first date ends in a marriage proposal.

2. It’s not me. It’s you.• The Chinese side originally thought there was something there – but now it’s just not working out.• Maybe you were too aggressive, too impatient, too greedy or too cheap.• The Chinese side switches from Plan A to Plan B to cut losses and recoup costs.• He may just stop returning calls.

3. You have outlived your usefulness.• You started out with technology, processes or business methods that he didn’t understand, and needed you – even at inflated costs.• Now he understands the tech and holds the IP (intellectual property), but you are still demanding most of the profit – and all of the respect.

Beware the “Downgrade”• To a Chinese negotiator with a long-term perspective, it doesn’t really matter if your betrayal or disappointment occurs in the first five minutes or after doing business for years.• You can be downgraded you from value-adding partner to one-off pest as soon as the circumstances require it.

Originally posted 1/2012 ChineseNegotiation.com• Know Your Chinese Counterparty: Long Term Planners or Short Term Opportunists?• http://www.chinesenegotiation.com/2012/01 /know-your-chinese-counterparty-long-term- planners-or-short-term-opportunists/

Guanxi for the Busy American• A professional’s guide to building relationships in China.• Written for the Western negotiator who needs to transact and execute.• Available on Kindle, iBook and all major e-formats. @2012 All Rights Reserved. Property of Best Practices China ltd

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Chinese Negotiators: Long Term Partners or Short Term Opportunists?

by ChinaSolved on May 14, 2012

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