Chinese people study negotiating tactics, and they are prone to gloves off tactics that are outside most of our thinking.
Many times they will propose outrageous demands just because the other party is foreign and could be taken advantage of.
If I am in the market and wrench a good price on oranges out of the seller. I likely have gained something.
However, if I get a good price on a sourced toy, then I might be sorry. I cannot walk away with the already made toy, but they will make them for me each month. The Chinese side could use inferior raw materials to win in the long run as most of us are aware.
In China, we can make the Chinese side feel they have won and we have lost. Maintaining that may give us some benefit as they do not feel as justified in cheating us. However, this requires acting and being false in our manners. It may lead them to think we are weak.
The very best is to not focus completely on technology. Focus on win-win orientation, high moral standards, stable work force and the like. You need to know about the character of who you are dealing with which will also involve their teachability. A “This is how it is done in China” kind of statement often reveals a closed view on Western methodology or thinking.
Negotiating in China is a big topic. Welcome to look at some other posts I have put up related to Negotiating in China.
Also, take a look at the blogroll on the bottom right. I added Chinese Negotiation Blog today, so that is new there.
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