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Chinese negotiating style

We Are Not #1 !

Experienced China negotiators know why China doesn’t want the title: World’s Biggest Economy.

China is trying its best to avoid the glare of international scrutiny again – but this time it’s not about censorship, corruption, or human rights. The World Bank is trying to hang the mantle of “world’s largest economy” on China’s brawny shoulders – and Beijing is having none of it.

10 China Negotiating Mistakes - Buy the eBook on Kindle
Learn from the expensive mistakes of expat negotiators who have come before you…

Regular readers of ChinaSolved are familiar with the successful Chinese negotiating tactic of BoPS  – or Balance of Power Shift. Chinese negotiators frequently enter a deal situation by purposely placing themselves in a subordinate position. They are known for their humility, cordiality, and polite flattery – “your company is so accomplished, your technology so advanced, your brand so famous.” You aren’t treated as an equal partner — you are “LaoShi”, the honored teacher who leads and offers guidance. Before you know it, you have guided your polite new junior partners right to your best technology, your proprietary business methods, and maybe even your customer lists. That’s when the balance of power shifts and suddenly your humble Chinese counterpart becomes a good deal more assertive. Once a Western negotiator has outlived his usefulness, the partnership either dissolves completely or becomes much more competitive in nature.

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Are Chinese Negotiators Long-Term or Short-Term? Yes

Chinese negotiators can be chess-match slow, or lightning fast.  The pace of your Chinese counter-party says a lot about your deal and relationship. 

A Chinese negotiator approaches each deal with two options in mind. His Plan A is a long-term Learn to negotiate in China with China Sooverelationship that will bring him many profitable transactions over a long time. He knows that this will require a lot of time and effort, but this is the Chinese recipe for success, and he considers the investment of time, effort and patience to be standard operating procedure. Plan B is a one-off, win-lose transaction.  One-time deals may not be the cornerstone of his strategy, but normal business operations require plenty of non-strategic transactions. Since he doesn’t plan on seeing the counter-party again, he should maximize profit immediately. Often that means lower quality production, inferior materials and little or no service.

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Chinese Negotiating Styles – Avoiders. A Casual Friday Video

We continue with our Chinese Negotiating Styles series by taking a look at a common Chinese negotiating type — the Avoiders. Westerners doing business in China — or negotiating with Chinese counterparties in home markets — have to get used to avoiding behaviors and tactics. Americans tend to view avoiders as weak or ineffective negotiators — but Chinese businessmen are adept at using avoidance to win concessions.
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