Material Empire

Rio de Janeiro, Brazil.

Negotiations between Chinese iron and steel companies and Vale on the price of iron ore officially started at Landy Hotel. The Chinese negotiating team was headed by Qin Hai, officials from ministries and commissions such as Mo Shaoxia and Huang Zhongliang, and representatives from several steel factories. Vale only sent three people to participate in the negotiations, the person in charge was a senior sales manager named La Paz, the other two were a technical engineer and the other was a legal commissioner, neither of whom played important roles.

When he heard the composition of Vale's negotiators, Qin Hai knew that the other party did not pay much attention to this negotiation. From Vale's point of view, negotiations are completely unnecessary. All they need to do is to inform the Chinese side of the extent of the iron ore price increase. As for what the Chinese side thinks about this, they don't care at all, because they believe that China has no other choice.

From the very beginning of the negotiations, Vale showed an aggressive attitude. La Paz read a statement to the Chinese negotiating team, saying that the supply price of iron ore in 2003 will rise by 70% from 2002, from $50 per ton to $85 per ton. After reading the statement, he glanced at the Chinese people and asked indifferently: "Did you hear clearly? Do you need me to read it again?"

Qin Hai looked at his team members and found that everyone had a helpless look on their faces. Only the little girl who served as the translator Guo Jiajia showed some anger, but she had no right to speak after all, so she couldn't say anything even if she got angry.

"Mr. La Paz, I would like to ask, did your company send the three of you here to negotiate or to make a statement?" Qin Hai asked calmly.

"Of course they came to negotiate." La Paz replied coldly.

"That is to say, the price you just proposed is a negotiable price. The two of us should discuss a reasonable price on the basis of a full exchange of opinions, isn't that right?" Qin Hai asked again.

La Paz 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 very simple. If you can't accept the price, then we can't cooperate."

Qin Hai smiled slightly and said, "Can Mr. La Paz make the final decision on behalf of Vale?"

"Hmm." La Paz 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 middle-level employee of the company after all, and it was very taboo to claim that he could represent the company.

"We protest." Huang Zhongliang said, "Your act of unilaterally determining the price is against the WTO trade rules. You use your monopoly position in the iron ore market to arbitrarily increase the supply price without giving any compensation. Any explanation, we will file a complaint with the WTO and demand an investigation into your trade practices."

"This is your right, I have no objection." La Paz said indifferently.

"Mr. La Paz, China and Brazil are old friends for many years, and Vale also has a long-term good cooperative relationship with Chinese companies. I think we should sit down and discuss a price that is suitable for both parties, so that the two sides can continue to maintain Cooperation." Mo Shaoxia began to play the emotional card, hoping to make La Paz fall in love.

La Paz still had an expression of reluctance, and he said: "Ma'am, you are very right, we have deep feelings for China. However, the price of iron ore is determined by the company after careful consideration." , we cannot change the price because of emotion, this is an irresponsible behavior to our shareholders."

"You are the overlord's clause. This kind of behavior hurts the feelings of the Chinese people." Mo Shaoxia said sonorously.

"I'm very sorry about that." La Paz lowered his head slightly to Mo Shaoxia, but there was a sneer on his face.

"Team Leader Qin, look, they have such an attitude, how can we go on talking about this!" Mo Shaoxia turned her head to Qin Hai and said angrily.

"Sister Mo, calm down. This is how negotiations are done. It's about being the first to win." Qin Hai comforted Mo Shaoxia, but he didn't think so. He knew that whether it was Huang Zhongliang or Mo Shaoxia, this performance was nothing more than fulfilling their obligations, so as not to be judged that they did not work hard enough to negotiate after returning home. In fact, Huang Zhongliang and Mo Shaoxia had already murmured in private that they had no hope for the outcome of the negotiation, and someone had already relayed these words to Qin Hai. No matter whether the price of iron ore rises or falls, it will not have the slightest influence on government officials. How can they have real enthusiasm to solve this problem.

Qin Hai and the others had played a round with La Paz before clearing their throats and saying, "Mr. La Paz, we have understood what you said just now. We have also seen your company's determination on the price." Here we go. Since you have no right to change the price, I hope you can bring a word back to your company."

"Mr. Qin, just say what you want, and we will definitely take it back and report to the president." La Paz said.

Qin Haidao: "We are negotiating with your company on behalf of 45 large iron and steel enterprises and 600 small and medium-sized enterprises in China. All Chinese iron and steel enterprises will maintain consistency in their actions. We can understand that your company hopes that the price of iron ore will rise. reasons, but we believe that the 70% increase is neither in line with cost changes nor in line with business rules, and your company’s behavior is an act of ignoring the interests of partners, which we cannot accept.”

"Hmm, is that what you want us to take back?" La Paz asked contemptuously.

Qin Haidao: "I haven't finished 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 , and even unwilling to discuss with us and adopt a unilateral policy, then we will have to reconsider the 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 the cooperation with China. If your company does not give up the unilateral policy within 30 days, then all Chinese companies will stop Cooperate with Vale and not buy 1kg of iron ore from Vale for five years."

"May I consider your words a threat?" La Paz 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 Ignore the threats of the Chinese, and in the end they are all swept into the dustbin of history."

"Well, I thought I'd pass those words on to Mr. Callum," La Paz said.

The first negotiation between the two sides ended without any result. 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 negotiation situation.

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 she was now engaged in business activities in South America. Mo Shaoxia pretended to have a bitter face and said to Wang Zheyi: "Mr. Wang asked the question knowingly, how could this kind of negotiation go smoothly?"

"Hee hee, with Mr. Qin on board, wouldn't it be possible to succeed?" Wang Zheyi teased with a smile.

Qin Hai also laughed and said, "Mr. Wang is mocking me. He knows that I have stumbled, but he still uses such words to humiliate me."

"I'm wronged." Wang Zheyi exclaimed exaggeratedly, "I clearly admire you very much, okay? I always feel that things that involve Mr. Qin are always successful."

Saying this kind of words in front of Mo Shaoxia and Huang Zhongliang inevitably caused some hatred, and even made them feel resentful towards the person who spoke. However, Wang Zheyi doesn't care about the opinions of these two, and she is not afraid of attracting enemies to Qin Hai. She is originally a member of the system, and 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 was showing his hands and feet.

"Vale believes that we cannot do without their iron ore, so they don't give us room for negotiation. They want to raise the price by 70% in one bite. Directors Mo and Director Huang have done a lot of work, but the other party This round of negotiations, we are indeed going to return without success." Qin Hai reported to Wang Zheyitong, and by the way, he also comforted Mo Shaoxia and Huang Zhongliang.

Wang Zheyi also put away his joking expression, and said seriously: "The situation I learned is also the same. Vale and BHP Billiton have reached a private agreement to jointly raise prices. Vale alone is not enough to divert China's iron ore sources. But with the addition of BHP Billiton, the situation is different. Last year, 70% of the iron ore imported by our country came from these two companies. They believe that we cannot afford to reduce the loss of 70% of imports.”

"We can't afford such a loss, can they afford to reduce the loss of exports?" Qin Hai said disdainfully, "We have learned about their debt situation, if exports to China are completely interrupted, they will immediately Falling into a state of total loss, the debt burden alone will be able to overwhelm both of them."

"So, this is a game of who blinks first." Wang Zheyi said.

"Yes, but I believe they must be the ones who blink first." Qin Hai said confidently.