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CEO meeting of two partners

In summer of 2010, my company and the Chinese partner held a series of negotiations on major cooperation clauses. These discussions were crucial not just because of the huge investment they involved, also that we aim to leverage the state visit by President Zuma of South Africa with President Hu of China to accelerate collaborations of the two companies. This would be a milestone if we manage to make it.
As true with all negotiations, our dialogues lasted long and debated fiercely over sensitive issues. The one that I referred to in the image was the last round, attended by the Chief Executives of the two companies, prepared to sign off agreements. Things went well as expected. Just one inch from signature and shaking hands, the lawyer of my company pointed out that an article on product off-taking did not commit SHL to guarantee imported price parity of our products, which was the most arguable topic since cooperation. My CE insisted that without a guaranteed product price that’s aligned with international oil prices, he was not able to conclude the contract. The partner understood this but they were unable to help as the prices are regulated by government. A breakdown was approaching.
I gave my CE a slip of paper that we both have a break. During the 15 minutes, I explained to the lawyer that the partner was actually unable to change their position on the product prices due to government policy constraints. However, we can divide the issue into two scenarios. When domestic price is higher than international level, products will be sold to partner at domestic prices. When it is the opposite, partner will provide subsidy through incentivised utility, tax and land rental to offset the gap. If they fail to deliver, my company is entitled to engage a third party buyer.
This was agreed by my company. The partner, with their belief that domestic prices always outstrip international level plus the trend that the government will likely deregulate price controlling in 2-3 years’ time, agreed to this stipulation.
The night we concluded the agreements and opened champagne, my CE told me that I could approach him any time on any topic, even surpassing my direct lead. I was awarded the Panda Prize, the highest level for employees with outstanding contribution to the company.

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