Are Win-Win deals in China possible? You will encounter many Chinese negotiators who appear collaborative -- but you have to be on your guard. When doing business in China, collaborators are you greatest hope - or worst nightmare.
5. Collaborative negotiators
are your greatest hope and
your worst fear in China.
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6. This is what we all look for in
China.
It’s the basis for every
Western-Sino JV
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7. Good News and Bad News
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• A true value-adding partner can
open doors and supply vital
market information.
8. Good News and Bad News
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• Chinese negotiators know you want a
Win-Win partnership and will use that
as leverage to get access to your
technology and IP.
9. Warning
• Win- Win is a product, not
an action plan.
• Not default setting in China.
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10. When Collaboration Works:
• You Add
–Technology
–Business
Methods
–Brand
–IP
–Management
• He Adds
–Local knowledge
–Contacts & network
–Regulatory compliance
–Market access &
distribution channels
–Operations &
Infrastructure
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11. The Plan: 2+2 = 5
• Collaborators add value.
• This is the rationale behind every
Sino-Western JV ever proposed.
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12. The Flaw in the Plan
• Win-Win & 50-50 control are not natural.
–Chinese law doesn't protect (one chop to
rule them all)
–Custom doesn't support 50-50.
–Goals usually encourage cheating.
• You want to go home.
• He wants you to stay home -- and leave your
best stuff
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13. The Win-Win Joke
•What does “Win-Win
mean to a Chinese
negotiator?
–I win now
–I win later
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14. Red Flag
Remember –
Conflict favors the home
team.
He's the home team.
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16. Tactic 1 – Fake Bosses
• Fake decision-maker (theirs)
• Real concessions (yours)
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17. Tactic 2 - Money Changes Everything
• Things start well and conflict occurs
after the business is a success.
–Sometimes accidental
–Sometimes intentional
• You are sexier when he is dumber
• Money changes everything
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18. Tactic 3: TIC. This is China
• Collaboration is a cultural variable
–Your view of “50-50” collaboration
and his may differ significantly.
–You have to set benchmarks about
equal division of labor – and profit.
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19. Tactic 4: Timing Imbalance
• Intentional timing imbalance.
• To achieve Win-Win collaboration, you
have to deliver value before they do.
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20. Tactic 5: Chinese Trust and
Western Due Diligence are not
Compatible
• Trust =/= due diligence
• Once you have established a Win-Win
framework, you start moving in opposing
directions.
–He expects trust.
–You expect transparency.
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21. Strategy: Bait and Switch
• Strategy - Bait and Switch.
• They know what you want and
what you are looking for.
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22. Strategy: Bait and Switch
• Chinese
negotiators are
great at letting
Westerners
connect dots.
• Collaboration and
trust will be your
idea.
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23. Final Warning
Beware of partners
who move too fast
when negotiating in
China.
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24. About Andrew Hupert - Author
• 10+ years in China,
– 3 in Taiwan & HK
• Principal at ChinaSolved
• Specialist in US-China Negotiation
– Corporate training, consulting, and
project management
• Publisher of ChinaSolved.com and
ChineseNegotiation.com
• Author – Guanxi for the Busy
American and The Fragile Bridge
Full list of publications and
slideshows available on
www.AndrewHupert.com
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25. The Fragile Bridge
• Conflict Management in
Chinese Business .
• Building relationships is
easy – maintaining
them is hard. Learn to
do it right.
• Available on Kindle,
iBook and all major e-
formats.
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