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All negotiators, Chinese, western or any other, fall into 1 of 5 categories, or TYPES
1. Competitive negotiators care only about their own needs and nothing for the
counterparties. They are Win-Lose negotiators.
2. Accommodators are those that care more about their counterparty’s needs than
their own. Salesmen with important clients fit into this category of Lose-Win
negotiators.
3. Compromisers are the ones that try to work out differences and arrive at an
equitable distribution of scarce resources. They look Win-Win, but many
negotiators consider them Lose-Lose.
4. Avoiders are those that prefer not to negotiate at all. Anyone who has told you
that your idea violates company policy or that the boss who makes that decision is
out of town for the next 6 weeks may be a great example of an Avoider.
5. Collaborators make up the last category – and these are the guys who want to
push envelopes and think outside of boxes to build new business. If you want to
buy a couple of household items and the counterparty wants to start a
manufacturing JV with an R&D center, then he is probably collaborative in his
approach. They talk Win-Win but if they don’t have the resources or capacity to
follow through they can actually be huge drains of time, cash and patience.
You will meet each of these negotiating archetypes in China – but things will not be quite
what they seem. Two cultural factors influence how each negotiating style will appear in
China:
1) Relationships are currency to Chinese negotiators, and the banquets, dinners, KTVs
and visits are not just meeting places – they are deal points. Refusing to participate is
insulting – but letting them make the arrangements all the time reinforces the notion that
you are playing on their home court (i.e.: weak, ignorant and vulnerable).
2) They all read Sun Tzu’s “Art of War” in junior high and now swear that it governs
the placement of every delicate strand of their grand strategy. In fact the only thing many
of them remember from the book is the part about deception being a good tactic.
Accommodators exist in China, but you have to be doubly careful here. Beware of
counterparties who look helpful but are really plotting to slaughter you for your gold
fillings. But wolves in sheep’s clothing aren’t your only problem here. In China kindness
can kill as passive colleagues and counterparties smile and nod as you blunder into
disaster. In Shanghai and Shenzhen the situation has gotten better, but you still shouldn’t
assume that people will warn you about mistakes and dangers that are obvious to
everyone else.
Avoiders are common in China, and are most likely to show up in the middle of modern
international corporations and the heads of State Owned Enterprises. China’s Imperial
legacy lives on in its bureaucracy, and you may find it extremely difficult to meet the real
decision-maker face-to-face. Every situation is unique and it may be worthwhile for you
to pursue some long-shots…BUT if you can’t get a satisfactory answer to basic questions
before you sign a deal you’re probably going to have a lot more trouble afterwards.
Collaborative negotiators are your greatest hope and your worst fear in China. On the
one hand a true value-adding partner can open doors and supply vital market information.
The problem is that lots of Chinese counterparties like to talk like the boss even if they
don’t have the power to back it up. The result is a lot of big plans that don’t ever amount
to anything. China novices have been known to build these optimistic notions into
internal business plans – and later face disappointed senior managers who want to know
what happened to the budding China JV. Beware of partners who move too fast when
negotiating in China.