8 Basic Chinese Negotiation Strategies to Surprise Your Counterpart

I fairly enjoy negotiations, since it always gives the opportunity to bring people closer together. Exactly the opposite can happen as well and I did burn the bridges in some cases and walked away. Walking away and not looking back is sometimes the best outcome particularly in China when you need to be crystal clear about your objectives and the positioning of your counterpart.

1. “No!” is just another invitation to start the negotiations

Fairly often I am confronted with an immediate rejection in form of a “No!” or “Impossible!”, however I tell my clients to embrace it as an opportunity or even as an invitation to start the games. In most cases only a formality stands in the way and it can be easily addressed without decreasing the overall deal value.

2. Good points are worth repeating many times

This is more likely a psychological effect, however repeating the positive aspects and the value the deal brings in over and over again works very well in practice. Good arguments manifest themselves by showing them as often as you can.

3. Understanding the deal value for them is great, however you still need to take it

Have a clear view in mind what the deal value for your counterpart is and what their loss would be without it. Additionally, fill up your pipeline on alternative deals so that you are completely free to negotiate the best offer. Always be nice in your negotiations but tough in getting what the deal is worth.

4. Good things take a lot of time, great things even longer

There has been written a lot on timing in business deals in China and how Chinese counterparts use it often to their advantage. My rule is to expect a deal to close in three times the initial timeline and I give it another quarter on top to be on the secure side. By this it takes a lot more than to shift the timeline to make me nervous.

5. The deal on the table must last even without long-term perspective

It’s certainly great that you have found a partner, who wants to collaborate with you as preferred and long-term partner. Now you are all in for the long-term but guess what, there is seldom an attractive future if the present does not work. Work hard to make the current deal happen for both parties and the chances are good that you will collaborate again in the future.

6. Act surprised but never be

You will face a lot of unknown tactical moves but also typical process management obstacles, governmental regulations, additional request for more information, scenario analysis, additional side-deals, new deal partners or responsibilities and all sorts of swings in various directions. Be prepared, let the energy and activism find its own balance and maybe the deal will be more stable after all considerations.

7. Calling out your counterpart’s motives can turn the tables

A powerful move which works in some situations, however it reveals a lot about your hand as well. This move should only be made if the risk of disclosing further information is worth the potential benefits to get the deal right. Once you have made this move and it does not work out, you should consider to leave the deal behind.

8. The best deals are based on mutual trust but also the most dangerous ones

The more deals you make the closer you will experience these situations. Even with long-term partners you need to evaluate every deal carefully again to make sure the value creation is still there and in line with your risk profile.

There are tons of great books on negotiations and also with focus on strategies and techniques particularly for China. China is definitely another playing field with its own rules. I will definitely write a bit more about this topic in the future, but for now enjoy your next negotiation round!

Let me know your thoughts and questions in the comment section. I can be reached at medium@thomasluk.com.