Will weaker Chinese growth strengthen your negotiating position?
The Chinese economy has been slowing for the last few quarters, and whether it is a controlled application of bureaucratic brakes or the start of a skid into a recessionary ditch, some international business people see China’s deceleration as an opportunity. International negotiators who believe that a slowing Chinese economy gives foreigners more leverage are, however, over-optimistic at best. There may be isolated cases were individual private Chinese businesses will be motivated to sweeten their offers in the face of a domestic slowdown, but it would be unwise to assume that Chinese counterparties are all feeling desperate. Westerners who calculate that the bureaucracy is going to become more welcoming to foreign businesses need to realize that a couple of years of slower growth will probably make their challenges in Beijing more severe.