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Foreign Fails When Negotiating in China

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Let's take a look at how Westerners get into trouble when putting together deals with Mainland counter-parties. The main culprits: bad planning, bad partnerships and bad deal structure.

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Foreign Fails When Negotiating in China

  1. 1. Three Foreign Fails in China Negotiate for Success in China All Rights Reserved. Property of Chinasolved, LLC. @Copyright 2013
  2. 2. What are the biggest negotiation mistakes Westerners make in China? All Rights Reserved. Property of Chinasolved, LLC. @Copyright 2013
  3. 3. What are the biggest mistakes Westerners make in China? 1. Lack of goals and planning. 2. Wrong partner. 3. No exit strategy. All Rights Reserved. Property of Chinasolved, LLC. @Copyright 2013
  4. 4. #1 Bad Goals All Rights Reserved. Property of Chinasolved, LLC. @Copyright 2013
  5. 5. #1 Lack of Clear Goals • “Making a lot of money” isn’t a business goal – it’s a naïve wish. • Don’t make the mistake of considering your first China deal a “learning experience”. All Rights Reserved. Property of Chinasolved, LLC. @Copyright 2013
  6. 6. Know Where You Want to End Up • If you don’t know where you want to end up, you are certain to get lost. • The less familiar you are with the environment and conditions, the more you need to prepare in advance. All Rights Reserved. Property of Chinasolved, LLC. @Copyright 2013
  7. 7. No Goals = High Risks • The whole Chinese negotiating process is set up to gather information and steepen their learning curve. All Rights Reserved. Property of Chinasolved, LLC. @Copyright 2013
  8. 8. NO Talk Show Interviews! All Rights Reserved. Property of Chinasolved, LLC. @Copyright 2013
  9. 9. NO Talk Show Interviews! All Rights Reserved. Property of Chinasolved, LLC. @Copyright 2013
  10. 10. Remember your SMART goals • Specific • Measureable • Actionable • Realistic • Timely All Rights Reserved. Property of Chinasolved, LLC. @Copyright 2013
  11. 11. Lack of Goals • Common fatal mistakes of foreigner negotiators in China: –Flying by the seat of their pants & hoping for the best. –Learning from their partners. –Transplanting American business model. All Rights Reserved. Property of Chinasolved, LLC. @Copyright 2013
  12. 12. #2 Bad Partner All Rights Reserved. Property of Chinasolved, LLC. @Copyright 2013
  13. 13. 2 Kinds of Wrong Partners: • Asset Raiders –Plan on stealing your IP and technology from the start. • Bad Fit –Want to help you – but can’t. All Rights Reserved. Property of Chinasolved, LLC. @Copyright 2013
  14. 14. Due Diligence in China • In China, due diligence is about character and loyalty – not credit reports and assets. All Rights Reserved. Property of Chinasolved, LLC. @Copyright 2013
  15. 15. Don’t Hold on Too Long • If you have the wrong partner or counterparty in China, the situation is unlikely to fix itself. All Rights Reserved. Property of Chinasolved, LLC. @Copyright 2013
  16. 16. #3 Bad Deal Structure All Rights Reserved. Property of Chinasolved, LLC. @Copyright 2013
  17. 17. No Exit Strategy • Risks grow with profits • Beware of long term commitments for a short term investment. All Rights Reserved. Property of Chinasolved, LLC. @Copyright 2013
  18. 18. Structure Deals for Success • The more money and assets you accumulate in China, the greater your risks. • Will your partners be satisfied with the status quo when the business starts making money… or will they think they can do better on their own? All Rights Reserved. Property of Chinasolved, LLC. @Copyright 2013
  19. 19. Structure Deals for Success All Rights Reserved. Property of Chinasolved, LLC. @Copyright 2013
  20. 20. Follow the discussion on LinkedIn at the China Solved group. All Rights Reserved. Property of Chinasolved, LLC. @Copyright 2013
  21. 21. Thank You All Rights Reserved. Property of Chinasolved, LLC. @Copyright 2013
  22. 22. About Andrew Hupert • 10+ years in China, – 3 in Taiwan & HK • Principal at Best Practices China ltd – Specialist in US-China Negotiation – Corporate training, consulting, and project management • Publisher of ChinaSolved.com and ChineseNegotiation.com • Author – Guanxi for the Busy American and The Fragile Bridge Full list of publications and slideshows available on www.AndrewHupert.com Property of ChinaSolved. All Rights Reserved. Copyright @201322
  23. 23. 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. Property of ChinaSolved. All Rights Reserved. Copyright @201323
  24. 24. The Fragile Bridge • Conflict Management in Chinese Business . • Building relationships is easy – maintaining them is hard. Learn to do it right. • Available on Kindle, iBook and all major e- formats. Property of ChinaSolved. All Rights Reserved. Copyright @201324
  25. 25. Contact www.ChinaSolved.com www.ChineseNegotiation.com Linkedin: ChinaSolved YouTube Channel: www.youtube.com/Chinasolved Property of ChinaSolved. All Rights Reserved. Copyright @201325

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