Rio de Janeiro, Brazil.

Negotiations between Chinese steel companies and Vale over the price of iron ore began in earnest at the Landi Hotel. The Chinese negotiating team was headed by Qin Hai, with officials from other ministries including Mo Shaoxia and Huang Zhongliang, as well as representatives from several steel mills. Vale sent only three people to the talks, including a senior sales manager named Lapaz, two technical engineers and one legal specialist, none of whom played important roles.

When he heard about the composition of Vale's negotiators, Qin Hai knew that the other side did not pay much attention to this negotiation. In Vale's view, the negotiations are completely unnecessary, and the only thing they need to do is to inform the Chinese side of the magnitude of the iron ore price increase, and as for what the Chinese side has to say about this, they simply don't care, because they believe that the Chinese side has no other choice.

As soon as the negotiations began, Vale showed an aggressive attitude. Laparz read a statement to the Chinese negotiating team, saying that the price of iron ore in 2003 would rise by 70% from 2002 levels, from US$50 per tonne to US$85 per tonne. After reading this statement, he glanced at the people on the Chinese side and asked lightly, "Did you hear clearly?" Do I need to re-read it? ”

Qin Hai looked at his team members and found that everyone had a helpless look on their faces, only the little girl Guo Jiajia, who served as the translator, showed some anger, but she didn't have the right to speak after all, so she couldn't say anything if she was angry.

"Mr. Lapaz, 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 I'm here to negotiate." Lapaz replied coldly.

That is to say. The price you just proposed is a price that can be discussed, and we should discuss a reasonable price on the basis of a full exchange of views, right? Qin Hai asked again.

"No, I don't think we need to discuss it, this price is the last offer of our company," Lapatz said. ”

Qin Haidao: "What does the final offer mean?" ”

"It's easy," Lapaz said. If you can't accept the 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." Laparz shrugged his shoulders. A vague answer was given. 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. It is taboo to claim that you can represent the company.

"We protest." Huang Zhongliang spoke. "Your unilateral determination of prices is contrary to WTO trade rules. If you take advantage of your monopoly position in the iron ore market to arbitrarily raise the price of your supply without giving any explanation, we will file a complaint with the WTO and ask for an investigation into your trading practices. ”

"It's your right, and I don't object to it." Lapaz said indifferently.

"Mr. Lapaz, China and Brazil have been friends for many years, and Vale has a long-standing relationship with Chinese companies. I think we should sit down and negotiate a price that is appropriate for both parties so that we can continue to work together. Mo Shaoxia began to play the emotional card. Hopefully, it will make Lapaz tempted.

Lapartz still had a look of indifference, and he said, "Madam, you are very right, we have a deep affection for China. However, the price of iron ore is determined by the company after careful consideration, and we cannot change the price because of feelings, which is irresponsible to our shareholders. ”

"You are a bully clause, and this kind of behavior hurts the feelings of the Chinese people." Mo Shaoxia said sonorously.

"I'm very sorry for that." Lapaz bowed his head slightly to Mo Shaoxia, but there was a hint of mockery on his face.

"Team Leader Qin, look at it, they have such an attitude, how can we talk about this!" Mo Shaoxia turned her head to Qin Hai and said in annoyance.

"Sister Mo is angry, negotiation is like this, pay attention to taking the lead." Qin Hai comforted Mo Shaoxia, but he was very unimpressed. He knew that whether it was Huang Zhongliang or Mo Shaoxia, this performance was just fulfilling his obligations, and he would not be able to fall into the evaluation of not working hard enough to negotiate after going back. In fact, Huang Zhongliang and Mo Shaoxia had already muttered in private, saying that they had no hope for the outcome of the negotiations, and these words had already been relayed to Qin Hai. Whether the price of iron ore rises or falls, it does not have the slightest impact on government officials, how can they have a real enthusiasm to solve this problem.

Qin Hai and the others had a round of hands with Lapaz before they cleared their throats and said, "Mr. Lapaz, we have already understood what you said just now. We have also seen your company's determination about price. Since you don't have the right to change the price, then I hope you can bring back a sentence to your company. ”

"If Mr. Qin has anything to say, just say it, and we will definitely bring it back and report to the president." Laparz 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, and all Chinese steel companies will maintain the consistency of their actions. We can understand why you want the price of iron ore to rise, but we believe that the 70% increase is neither in line with the change in costs nor in line with the rules of business, and that your company is doing so in disregard of the interests of our partners and is unacceptable to us. ”

"Uh-huh, is that what you want us to bring back?" Lapadz asked contemptuously.

Qin Haidao: "I haven't finished yet. I would like to inform you, President of Callum, that we are very interested in forming a long-term and stable relationship with Vale, but this desire must be achieved by both parties. If your company is not willing to negotiate with us and adopt a unilateral policy despite our demands, then we will have to reconsider our cooperation with Vale. ”

"You're trying to tell me that you're going to refuse to work with Vale?" Lapaz asked.

"Yes." "From now on, we will give Vale 30 days to rethink its cooperation with China. If your company does not abandon the unilateral policy within 30 days, then all Chinese companies will stop cooperating with Vale and will not buy 1 kg of iron ore from Vale for five years. ”

"May I consider your words a threat?" Lapaz sneered.

The smile on Qin Hai's face was colder than that of Lapaz, and he said, "I can tell you unequivocally that this is indeed a threat. And I would also like to remind you that the threat of the Chinese should never be taken lightly. There were many people who ignored the threat of the Chinese, and in the end they were all swept into the dustbin of history. ”

"Well, I think I'll relay that to Mr. Callum." Laparz said.

The first negotiations between the two sides ended in vain. Lapaz returned to the company with two entourages, and the Chinese negotiating team also left for the airport to fly back to China.

"Mr. Qin, Director Mo, Director Huang, is the negotiation going well?"

In the airport hall, Wang Zheyi, dressed in casual attire, greeted the Chinese delegation, nodded to everyone, and then asked about the negotiations.

Mo Shaoxia and Huang Zhongliang have dealt with Wang Zheyi in the past, and they also know that she is the daughter of Wang Hongsheng, the former deputy director of the Planning Commission, and is now engaged in business activities in South America. Mo Shaoxia said to Wang Zheyi with a pretended bitter face: "Mr. Wang asked knowingly, how can this kind of negotiation go smoothly?" ”

"Hehe, with Mr. Qin's horse, can't he succeed?" Wang Zheyi joked with a smile.

Qin Hai also smiled: "Mr. Wang is making fun of me, knowing that I have planted a heel, and he still humiliates me with such words." ”

"Wronged." Wang Zheyi exclaimed exaggeratedly, "I obviously admire you very much, I always feel that things with Mr. Qin's participation have always been successful." ”

When this kind of thing is said in front of Mo Shaoxia and Huang Zhongliang, it is inevitable that there will be some hatred, and it will even make them resentful of the person who speaks. However, Wang Zheyi didn't care about the opinions of these two, and she was not afraid of attracting enemies to Qin Hai, she was originally a person in the system, knowing that there was no hope for Mo Shaoxia to count on this kind of thing, if it was possible to solve the problem in the end, it must be Qin Hai who was using his hands and feet.

"Vale thinks we can't do without their iron ore, so it doesn't give us room to negotiate at all. They bite to death to raise the price by 70%, Director Mo and Director Huang have done a lot of work, but the other party refuses to let go at all, this round of negotiations, we are indeed going to return in vain. Qin Hai reported to Wang Zheyitong, and by the way, he also calmed Mo Shaoxia and Huang Zhongliang's hearts.

Wang Zheyi also put away his joking expression and said seriously: "The same is true of what I have learned, Vale and BHP Billiton have reached a private agreement to jointly raise prices. Vale alone is not enough to cut off China's iron ore sources, but with BHP Billiton, the situation is different. Last year, 7% of the iron ore imported by our country came from these two companies. They believe that we cannot afford to lose 7 percent of our imports. ”

"We can't afford to lose like that, can they afford to reduce exports?" Qin Hai said disdainfully, "We have learned about their debt situation, and if exports to China are completely cut off, they will immediately fall into a state of total loss, and then the debt burden alone can crush the two of them." ”

"So, it's a game of blinking first." Wang Zheyi said.

"Yes, but I'm sure they'll be the ones who blink first." Qin Hai said confidently. (To be continued......)