Jörg Wuttke, former President of the European Chamber of Commerce in China, shares intriguing negotiation stories from his 25 years of experience in Beijing. He emphasizes the importance of going in as a mouse rather than a lion. Topics discussed include learning Sun Tzu's 'The Art of War', enduring silence, and the most authentic politician to negotiate with Beijing.
It is important to understand cultural differences and maintain a linear approach while respecting the holistic negotiating style of Chinese counterparts.
Negotiations in China involve not only cultural differences but also political constraints faced by Chinese counterparts, making it essential to recognize these factors for successful negotiations.
Deep dives
Negotiating in China: Insights from an Experienced Negotiator
In this podcast episode, Joach Wudge, the Chief Representative of BASF China in Beijing, shares his experiences and insights on negotiating in China. He emphasizes that while the famous strategist Sun Tzu's principles from 'The Art of War' may have some relevance in Chinese negotiation strategies, it is important to not solely rely on them. Wudge recounts a major project negotiation in Nanjing where his team had to navigate jet lag, language barriers, and ever-changing Chinese negotiation teams. He highlights the importance of understanding cultural differences and maintaining a linear approach while respecting the holistic negotiating style of Chinese counterparts. Wudge also addresses the use of artificial obstacles and the need for meticulous analysis during negotiations. He advises politicians to avoid grandstanding and develop authentic relationships with their Chinese counterparts. Additionally, he recommends preparing thoroughly, learning from Japanese trading house practices, employing active listening, and leveraging the power of silence during negotiations.
Cultural and Political Factors in Chinese Negotiations
Wudge discusses the cultural and political aspects that can influence negotiations in China. He emphasizes that negotiations involve not only cultural differences but also political constraints faced by Chinese counterparts, as they need to report to government agencies. He points out that understanding these factors is essential for successful negotiations. Wudge cites examples of how Chinese negotiators often tiptoe around certain topics to gauge their counterparts' responses, and he shares his experience with artificial obstacles presented during negotiations. He highlights the importance of recognizing that negotiations in China are a blend of cultural, political, and economic factors. Additionally, he discusses the significance of personal relationships and the need for careful understanding of who to trust in negotiations.
Lessons for Successful Negotiations with Chinese Counterparts
Wudge offers practical suggestions for preparing and dealing with negotiations in China. He highlights the value of thorough preparation, drawing on his observations of Japanese trading house practices. He advises adopting an authentic approach and avoiding overpromising or grandstanding. Wudge also stresses the importance of active listening, specifically having a dedicated note-taker during negotiations. He shares the tactic of using silence strategically and cautions against rushing negotiations during challenging times. Furthermore, he recommends Vijay Gokhale's book, 'The Long Game,' which provides insights on negotiations between China and India, as a valuable resource for learning about negotiating with Chinese counterparts.
In this episode of the MERICS China Podcast, Jörg Wuttke talks about negotiations in China. Wuttke has more than 25 years of experience as Chief Representative of the German chemicals company BASF in Beijing. In conversation with MERICS Director Communications and Publications Claudia Wessling, the former President of the European Chamber of Commerce in China shares intriguing stories about learning Sun Tzu’s “The Art of War” in negotiations stretching over nearly 200 rounds. He also explains why sometimes enduring silence might be the best approach. And he reveals who he thinks was the most authentic politician to negotiate with Beijing.
If this whets your appetite, make sure to read the comment pieces on the topic of negotiations by our former Senior Fellow and former Indian top diplomat Vijay Ghokale and by our Senior Associate Fellow Charles Parton: