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Chinese counterparty

Last Man Standing Part 3: POV Counts.

POV counts. Chinese have opinions too.

In US China negotiation, POV changes everything.
POV changes everything in negotiation

Some westerners are pushing back against the idea that we are facing the risk of rising trade barriers or a breakdown in orderly trade regimes. Their logic is that, “The US has a lot of levers, and we can assert our rights without necessarily sparking a trade war that the Trump Administration doesn’t want.” Not wrong, but it makes the dangerous assumption that trade relations are going to be something Washington stays in control of.

Trade frictions almost always take on a life of their own due to a single inconvenient point: Both sides in a dispute get an opinion. If you don’t know the other guy’s point of view (POV) then you have absolutely no control over the final result.

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US-China Negotiation and the Balance of Power Shift (BOPS) Part II – How it affects Chinese tactics

Last time we talked about why US-China deals undergo a shift in the balance of power.

Shifts in the power balance have to be seen through the filter of your counter-party’s culture and experience. You might think that moving money or assets into China means that you have more power in the relationship with your local partner – but to him this may signal the beginning of the end – his last chance to get paid before the finale. You see your new venture as something stable and growing – he may see it as one component of a larger, more fluid set of opportunities. He’s learned a new product or process from you, and profited a bit in the process. Staying put with you would be lazy and slothful – what he should be doing is putting this new expertise to work by developing his own operation. He’s already got the network and the channels – all he needed with process training.

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Negotiating in China: Secrets of Success, Part II

Last week we talked about the perils and pitfalls of SUCCESFUL negotiations in China. One of the first rules of doing business in China is that a signed contract is a starting gun, not a finish-line flag. In China, negotiations don’t really get started in earnest until after the signatures are on the dotted line.

But reaching the signing ceremony is getting tougher and tougher. Chinese deals almost always involve an element of policy, and China’s bureaucracy requires that international negotiators adopt a new set of rules.

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US-China Negotiating Rule: Don’t Kiss Frogs in China

In China, counter-party selection is more important than potential deal terms. Good partners don’t necessarily lead to good deals, but bad partners always lead to disaster. The Chinese know this about themselves – that’s why guanxi and networking are so important here. Westerners have a different set of terms – due diligence and reputation – but the meaning is analogous for business purposes.