Chinese negotiators generally consider their BATNA to be fairly strong because they operate under the assumption that there is always counter-party. Many westerners, however, confuse ‘guanxi relationship’ with ‘lifelong monogamy’.
The Chinese are just figuring out that they need a stronger Yuan more than anyone – but if the rabid-right keep screeching about it then Beijing is going to be able to extract all sorts of concessions for doing what’s best for them.
This was originally published on ChinaSolved.com in November, 2009: Obama’s rolling into town in a few days. He’ll have with him an …
Chinese negotiators are well schooled in tai-chi tactics – and are all too happy to allow brash, confident (and well-financed) western partners and buyers to dominate business relationships until they over-extend their resources and transfer technology, know-how, and best practices.
China’s economy is starting to show signs of stress – inflation is raging, resources are running low and the income gap between rich and poor is becoming difficult to reconcile with socialist principle. Instead of embarking on a path of moderation and serious rehabilitation, Beijing seems to be taping up and running even harder.
The future of US-China commerce depends on counter-parties’ ability to manage chaos and change. The same reality will govern individual businesses and industries. When entrenched players begin to lose ground to competitors – or are weakened by environmental factors – the stage is set for disruption and hyper-competition. This is not a scenario that favors soft-landings – or steady recoveries.
the problem facing Westerners making business decisions in China. Do you take huge strides in infrastructure as a positive indicator and push to give your company’s China project a big thumbs up? Or are you more concerned by the persistent bottlenecks? This isn’t just about attitudes and outlooks – some business models are optimized for blue skies while others solve problems. The challenge is to stay objective about your business potential in China and send useful analysis back to the home office.