ChinaSolved continues its series on Chinese negotiating styles - today looking at the competitive type. In the US, you can usually spot a competitive, or Win-Lose negotiator right away, but in China you may be the last to know that your counter-party has become aggressive and competitive. In many cases, competitive behavior is the finale in a combination of tactics that begins with flattery and relationship-building.

1. Chinese Negotiating Styles:
the Competitor
ChinaSolved
Spring 2013
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2. Negotiators all fall into
1 of 5 categories, or
TYPES.
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3. 5 Negotiating Styles
• Competitive
• Compromising
• Accommodating
• Avoiding
• Collaborating
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4. Negotiating Styles
Your
Benefit
His Benefit
Competitive
AccommodativeAvoiding
Collaborative
Compromising
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5. Chinese Competitors Don’t Always
Look Like They are Competitive
• American competitors can be
spotted a mile away.
• You may be the last to know that a
Chinese partner has turned
aggressive.
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6. Competitive Behavior in China
• Withdraw contact
• Withhold information
• Terminate partnership
• IP theft and hacking
• Block and hinder your efforts
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7. American vs. Chinese Competitors
• American
competitors tend
to be aggressive,
controlling and
intimidating.
• Show of force.
• Take it or leave it,
now or never.
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• Chinese power
comes from
withdrawal and
withholding.
• Tai-chi tactics – you
to fall on your face.
• Make you pursue
and renegotiate.

8. Competitive Behavior Comes
Late in the Process
• Competitive behavior follows
flattery or relationship
building.
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9. Competitive Tactics are the Finale
• Remember the
BoPS: Balance
of Power Shift.
• Once the
Chinese side has
what it wants, it
shifts position.
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10. BoPS End Game
• In the early phase of the BoPS, the
Chinese side builds a connection and
manipulates the relationship to
acquire IP, technology and assets.
• Competitive tactics terminate the
relationship and get rid of Western
partners.
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11. Competition in Negotiation
Competitive behaviors in
Chinese negotiation:
–5 Tactics
–1 Strategy
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12. Tactic 1: Runaway Bride
• Get the ring (IP, cash, product
development) and then
disappear.
• Often with no warning or
explanation .
• You’ve been jilted – in front of
everyone.
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13. Tactic 2: Grabbing the Crown Jewels
• Theft of IP, technology,
branding & processes are a
competitive tactics.
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14. Tactic 3: Cutting QC Corners
• QC and QA problems are not
accidents. This is often a
calculated profit enhancement.
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15. Tactic 4: Patriot Games
• Chinese competitors can
sometimes use regulations,
bureaucracy, laws – and even
public opinion – against you.
– Restrict your range of activities.
–Delay or deny approvals.
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16. Tactic 5: Sub Commander
• Sub-contracting is a big problem.
• A way of expanding profit margin.
• Usually leads to lower quality and
delays.
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17. Strategy: Who’s in charge?
• Enlarge or enhance the scope of a
deal.
• You have developed a trusting
relationship.
–They have taken on the role of local
expert, guide and networker.
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18. • You think everything is heading in
the right direction at a rapid pace.
• You see a clear path to your final
goals.
–Contract
–JV
–A solid, understandable business.
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Strategy: Who’s in charge?

19. Strategy: Who’s in charge?
• At the last minute a new element
is introduced.
–Expanded deal scope.
–New investment
–New partners
–New bureaucrats or regulators
–New hires, products or locations.
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20. Strategy: Who’s in charge?
• You are already committed, so
feel that you have no choice
but to pay more or make
changes that benefit your
partners.
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21. About Andrew Hupert - Author
• 10+ years in China,
– 3 in Taiwan & HK
• Principal at ChinaSolved
• 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
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22. 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.
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23. 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.
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24. Thank You
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25. Contact
www.ChinaSolved.com
www.ChineseNegotiation.com
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