Chapter 754 Don't underestimate the threat of the Chinese
Rio de Janeiro, Brazil.
Negotiations on iron ore prices between Chinese steel companies and Vale officially started at the Randy Hotel. The Chinese negotiating team was led by Qin Hai, and also included officials from ministries and commissions such as Mo Shaoxia and Huang Zhongliang, as well as representatives from several steel plants.
Representative. Vale only sent three people to participate in the negotiations. The person in charge was a senior sales manager named Lapaz. The other two were a technical engineer and a legal specialist. None of them played important roles.
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When he heard about the composition of Vale's negotiators, Qin Hai knew that the other party did not pay much attention to this negotiation. In Vale's view, negotiations are completely unnecessary. There is only one thing they need to do, that
It is to inform China of the extent of the increase in iron ore prices. As for China's opinions on this, they don't care at all because they believe that China has no other choice.
At the beginning of the negotiations, Vale showed an aggressive attitude. La Paz read a statement to the Chinese negotiating team, stating that the iron ore supply price in 2003 would increase by 70% on the basis of 2002.
It rose from US$50 per ton to US$85 per ton. After reading the statement, he scanned the crowd in China and asked calmly: "Did you hear it clearly? Do you need me to read it again?"
Qin Hai looked at his team members and found that everyone had a look of helplessness on their faces. Only the young girl Guo Jiajia, who served as the translator, showed some anger, but after all, she had no right to speak, so she couldn't say anything no matter how angry she was.
"Mr. La Paz, I would like to ask, did your company send you three here to negotiate or to make a statement?" Qin Hai asked calmly.
"Of course we are here to negotiate." La Paz replied coldly.
"In other words, the price you just proposed is a negotiable price. The two parties should discuss a reasonable price based on a full exchange of opinions, right?" Qin Hai asked again.
Lapaz said: "No, I don't think we need to discuss it. This price is our company's final offer."
Qin Haidao: "What does the final quotation mean?"
La Paz said: "It's simple. If you can't accept this price, then we can't cooperate."
Qin Hai smiled slightly and said: "Can Mr. Lapaz make the final decision on behalf of Vale?"
"Uh-huh." Lapaz shrugged and gave a vague answer. He wanted to tell Qin Hai that he did have this power, but he couldn't say it clearly because he was only a member of the company after all.
It is taboo for mid-level employees to claim that they can represent the company.
"We protest." Huang Zhongliang spoke. "Your behavior of unilaterally determining prices is contrary to WTO trade rules. You use your monopoly position in the iron ore market to arbitrarily increase supply prices without giving any
If there is no explanation, we will file a complaint with the WTO and request an investigation into your trade practices."
"This is your right, I have no objection." La Paz said nonchalantly.
"Mr. La Paz, China and Brazil have been old friends for many years. Vale also has a long-term and good cooperative relationship with Chinese companies. I think both of us should sit down and discuss a price that is suitable for both parties so that both parties can continue to maintain good relations.
Cooperate." Mo Shaoxia began to play the emotional card, hoping to make La Paz fall in love.
La Paz still had an expression of indifference. He said: "Madam, you are absolutely right. We have deep feelings for China. However, the price of iron ore is determined by the company after careful consideration.
, we cannot change prices because of emotions, this is irresponsible behavior to our shareholders."
"This is your overlord clause. This kind of behavior hurts the feelings of the Chinese people." Mo Shaoxia said sonorously and forcefully.
"I'm very sorry about this." Lapaz bowed his head slightly to Mo Shaoxia, but there was a trace of ridicule on his face.
"Team Leader Qin, look, they have such an attitude, how can we continue talking!" Mo Shaoxia turned her head to Qin Hai and said angrily.
"Sister Mo, please calm down. This is how negotiations work. It's all about being the first to win." Qin Hai comforted Mo Shaoxia, but he was very dissatisfied in his heart. He knew that whether it was Huang Zhongliang or Mo Shaoxia, this performance was nothing more than trying his best.
It's just an obligation, so as not to make a comment about not working hard enough in the negotiation when they go back. In fact, Huang Zhongliang and Mo Shaoxia had long whispered in private that they had no hope for the outcome of the negotiation, and someone had already relayed these words to Qin Hai. Tie
Whether the price of ore rises or falls, it has no impact on government officials at all. How can they have real enthusiasm to solve this problem?
Qin Hai and everyone else had a round of fighting with La Paz, and then he cleared his throat and said: "Mr. La Paz, we already understand the situation you just mentioned. We have also seen your company's determination on price.
Here we are. Since you have no right to change the price, I hope you can bring back a message to your company."
"If Mr. Qin has anything to say, just say it. We will definitely take it back and report it to the president," Lapaz said.
Qin Haidao: "We are negotiating with your company on behalf of 45 large steel companies and 600 small and medium-sized enterprises in China. All Chinese steel companies will maintain consistency in their actions. We can understand that your company hopes that iron ore prices will rise.
reasons, but we believe that the 70% increase is neither in line with cost changes nor in line with business rules. What your company does is an act that ignores the interests of its partners and is unacceptable to us."
"Uh-huh, is this what you want us to take back?" Lapaz asked contemptuously.
Qin Haidao: "I haven't finished speaking yet. Please tell President Callum that we very much hope to form a long-term and stable cooperative relationship with Vale, but this wish must be achieved by both parties. If your company ignores our demands,
, are even unwilling to discuss with us and adopt unilateral policies, then we will have to reconsider our cooperation with Vale."
"Are you trying to tell me that you will refuse to cooperate with Vale?" La Paz asked.
"Yes." Qin Hai said, "From now on, we will give Vale 30 days to rethink its cooperation with China. If your company does not give up its unilateral policy within 30 days, then all Chinese companies will stop
In cooperation with Vale, not one kilogram of iron ore will be purchased from Vale within five years.”
"Can I take your words as a threat?" LaPaz sneered.
The smile on Qin Hai's face was colder than that of La Paz. He said: "I can tell you clearly that this is indeed a threat. And I also want to remind you, never underestimate the threat of the Chinese. There have been many people
Ignoring the threat from the Chinese, they were eventually swept into the dustbin of history."
"Well, I guess I'll pass that on to Mr. Callum," LaPaz said.
The first negotiation between the two parties ended in vain. La Paz returned to the company with two entourages, and the Chinese negotiating team also set off for the airport, preparing to fly back to China.
"President Qin, Director Mo, Director Huang, are the negotiations going well?"
In the airport lobby, Wang Zheyi, dressed in casual attire, walked towards the Chinese delegation. She nodded and greeted everyone, and then asked about the status of the negotiations.
Both Mo Shaoxia and Huang Zhongliang had dealt with Wang Zheyi in the past, and they also knew that she was the daughter of Wang Hongsheng, the former deputy director of the Planning Commission, and was now engaged in business activities in South America. Mo Shaoxia pretended to be bitter and said to Wang Zheyi: "Mr. Wang, this is
You know what you are asking, how can this kind of negotiation go smoothly?"
"Hehe, if Mr. Qin takes action, can't we succeed?" Wang Zheyi joked with a smile.
Qin Hai also laughed and said: "Mr. Wang is making fun of me. He clearly knows that I have failed, but he still uses such words to humiliate me."
"It's unfair." Wang Zheyi exclaimed exaggeratedly, "I obviously admire you very much, okay? I always feel that anything with Mr. Qin's involvement is always a success."
Such words were said in front of Mo Shaoxia and Huang Zhongliang, which inevitably caused a bit of hatred, and even made them feel resentful towards the person speaking. However, Wang Zheyi did not care about the opinions of these two people, and was not afraid of giving Qin
Hai has attracted enemies. She is originally a member of the system. She knows that it is hopeless to count on Mo Shaoxia and the others for this kind of thing. If the problem can be solved in the end, it must be Qin Hai who is using his hands and feet.
"Vale believes that we can't do without their iron ore, so they don't give us any room for negotiation. They insisted on raising the price by 70%. Director Mo and Director Huang have done a lot of work, but the other party
We are not willing to let go at all. This round of negotiations is indeed going to end in vain." Qin Hai reported to Wang Zhe Yitong, and by the way, he also comforted Mo Shaoxia, Huang Zhongliang and their hearts.
Wang Zheyi also put away his joking expression and said seriously: "What I learned is the same. Vale and BHP Billiton have reached a private agreement to jointly raise prices. Vale alone is not enough to control China's iron ore sources.
But with the addition of BHP Billiton, the situation is different. Last year, 70% of the iron ore imported into our country came from these two companies. They believe that we cannot bear the loss of 70% reduction in imports."
"We can't afford such losses, how can they afford to reduce exports?" Qin Hai said disdainfully, "We have learned about their debt situation. If exports to China are completely interrupted, they will immediately
If they fall into a state of total loss, the debt burden alone will be able to crush both of them."
"So, this is a game of who can blink first." Wang Zheyi said.
"Yes, but I believe they must be the ones who blinked first." Qin Hai said confidently. (To be continued.)