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Chinese Negotiating Styles:
the Collaborator
ChinaSolved
Spring 2013
Property of ChinaSolved. All Rights
Reserved. Copyright @2013
Negotiators all fall into
1 of 5 categories, or
TYPES.
Property of ChinaSolved. All Rights
Reserved. Copyright @2013
5 Negotiating Styles
• Competitive
• Compromising
• Accommodating
• Avoiding
• Collaborating
Property of ChinaSolved. All Rights
Reserved. Copyright @2013
Negotiating Styles
Your
Benefit
His Benefit
Competitive
AccommodativeAvoiding
Collaborative
Compromising
Property of ChinaSolved. All Rights
Reserved. Copyright @2013
Collaborative negotiators
are your greatest hope and
your worst fear in China.
Property of ChinaSolved. All Rights
Reserved. Copyright @2013
This is what we all look for in
China.
It’s the basis for every
Western-Sino JV
Property of ChinaSolved. All Rights
Reserved. Copyright @2013
Good News and Bad News
Property of ChinaSolved. All Rights
Reserved. Copyright @2013
• A true value-adding partner can
open doors and supply vital
market information.
Good News and Bad News
Property of ChinaSolved. All Rights
Reserved. Copyright @2013
• Chinese negotiators know you want a
Win-Win partnership and will use that
as leverage to get access to your
technology and IP.
Warning
• Win- Win is a product, not
an action plan.
• Not default setting in China.
Property of ChinaSolved. All Rights
Reserved. Copyright @2013
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
Property of ChinaSolved. All Rights
Reserved. Copyright @2013
The Plan: 2+2 = 5
• Collaborators add value.
• This is the rationale behind every
Sino-Western JV ever proposed.
Property of ChinaSolved. All Rights
Reserved. Copyright 2013
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
Property of ChinaSolved. All Rights
Reserved. Copyright @2013
The Win-Win Joke
•What does “Win-Win
mean to a Chinese
negotiator?
–I win now
–I win later
Property of ChinaSolved. All Rights
Reserved. Copyright @2013
Red Flag
Remember –
Conflict favors the home
team.
He's the home team.
Property of ChinaSolved. All Rights
Reserved. Copyright @2013
Collaboration in Negotiation
Collaboration behaviors in
Chinese negotiation:
–5 Tactics
–1 Strategy
Property of ChinaSolved. All Rights
Reserved. Copyright 2013
Tactic 1 – Fake Bosses
• Fake decision-maker (theirs)
• Real concessions (yours)
Property of ChinaSolved. All Rights
Reserved. Copyright @2013
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
Property of ChinaSolved. All Rights
Reserved. Copyright @2013
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.
Property of ChinaSolved. All Rights
Reserved. Copyright 2013
Tactic 4: Timing Imbalance
• Intentional timing imbalance.
• To achieve Win-Win collaboration, you
have to deliver value before they do.
Property of ChinaSolved. All Rights
Reserved. Copyright @2013
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.
Property of ChinaSolved. All Rights
Reserved. Copyright @2013
Strategy: Bait and Switch
• Strategy - Bait and Switch.
• They know what you want and
what you are looking for.
Property of ChinaSolved. All Rights
Reserved. Copyright @2013
Strategy: Bait and Switch
• Chinese
negotiators are
great at letting
Westerners
connect dots.
• Collaboration and
trust will be your
idea.
Property of ChinaSolved. All Rights
Reserved. Copyright @2013
Final Warning
Beware of partners
who move too fast
when negotiating in
China.
Property of ChinaSolved. All Rights
Reserved. Copyright @2013
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
Property of ChinaSolved. All Rights
Reserved. Copyright 2013
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.
Property of ChinaSolved. All Rights
Reserved. Copyright 2013
Thank You
All Rights Reserved. Copyright @2013.
Property of ChinaSolved
Contact
www.ChinaSolved.com
www.ChineseNegotiation.com
Linkedin: China Solved
YouTube Channel:
www.youtube.com/Chinasolved

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Know Your Chinese Negotiators: Collaborator

  • 1. Chinese Negotiating Styles: the Collaborator ChinaSolved Spring 2013 Property of ChinaSolved. All Rights Reserved. Copyright @2013
  • 2. Negotiators all fall into 1 of 5 categories, or TYPES. Property of ChinaSolved. All Rights Reserved. Copyright @2013
  • 3. 5 Negotiating Styles • Competitive • Compromising • Accommodating • Avoiding • Collaborating Property of ChinaSolved. All Rights Reserved. Copyright @2013
  • 5. Collaborative negotiators are your greatest hope and your worst fear in China. Property of ChinaSolved. All Rights Reserved. Copyright @2013
  • 6. This is what we all look for in China. It’s the basis for every Western-Sino JV Property of ChinaSolved. All Rights Reserved. Copyright @2013
  • 7. Good News and Bad News Property of ChinaSolved. All Rights Reserved. Copyright @2013 • A true value-adding partner can open doors and supply vital market information.
  • 8. Good News and Bad News Property of ChinaSolved. All Rights Reserved. Copyright @2013 • 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. Property of ChinaSolved. All Rights Reserved. Copyright @2013
  • 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 Property of ChinaSolved. All Rights Reserved. Copyright @2013
  • 11. The Plan: 2+2 = 5 • Collaborators add value. • This is the rationale behind every Sino-Western JV ever proposed. Property of ChinaSolved. All Rights Reserved. Copyright 2013
  • 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 Property of ChinaSolved. All Rights Reserved. Copyright @2013
  • 13. The Win-Win Joke •What does “Win-Win mean to a Chinese negotiator? –I win now –I win later Property of ChinaSolved. All Rights Reserved. Copyright @2013
  • 14. Red Flag Remember – Conflict favors the home team. He's the home team. Property of ChinaSolved. All Rights Reserved. Copyright @2013
  • 15. Collaboration in Negotiation Collaboration behaviors in Chinese negotiation: –5 Tactics –1 Strategy Property of ChinaSolved. All Rights Reserved. Copyright 2013
  • 16. Tactic 1 – Fake Bosses • Fake decision-maker (theirs) • Real concessions (yours) Property of ChinaSolved. All Rights Reserved. Copyright @2013
  • 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 Property of ChinaSolved. All Rights Reserved. Copyright @2013
  • 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. Property of ChinaSolved. All Rights Reserved. Copyright 2013
  • 19. Tactic 4: Timing Imbalance • Intentional timing imbalance. • To achieve Win-Win collaboration, you have to deliver value before they do. Property of ChinaSolved. All Rights Reserved. Copyright @2013
  • 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. Property of ChinaSolved. All Rights Reserved. Copyright @2013
  • 21. Strategy: Bait and Switch • Strategy - Bait and Switch. • They know what you want and what you are looking for. Property of ChinaSolved. All Rights Reserved. Copyright @2013
  • 22. Strategy: Bait and Switch • Chinese negotiators are great at letting Westerners connect dots. • Collaboration and trust will be your idea. Property of ChinaSolved. All Rights Reserved. Copyright @2013
  • 23. Final Warning Beware of partners who move too fast when negotiating in China. Property of ChinaSolved. All Rights Reserved. Copyright @2013
  • 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 Property of ChinaSolved. All Rights Reserved. Copyright 2013
  • 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. Property of ChinaSolved. All Rights Reserved. Copyright 2013
  • 26. Thank You All Rights Reserved. Copyright @2013. Property of ChinaSolved

Notas del editor

  1. In the US – calling someone “passive” is very insulting. In China, it can go either way.Passivity can be a positive action