The Fragile Bridge – Managing Conflict in Chinese Business. Part 3: Paths to Reconciliation
The key to successful negotiating in China is to make sure your first conflict is not your last conflict. Keep trust alive. Many small disagreements can build a relationship — as long as they get resolved amicably.Conflict Management in Chinese Business, Part 3: Paths to reconciliation
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.