Negotiating important contracts in China : shadow play from start to finish ?

• François BRUCKER
  Senior Advisor, Control and Command business unit, Areva NP
  
• Thierry ROLLAND
  Director, EPR (Enterprise Resource Planning), Taïshan, Areva NP
  

Summary

In order to cope with the marked increase in its energy needs, China is expanding its production of electricity from nuclear power. Having started to operate second-generation power stations which represent the dominant technologies, China has now equipped itself with the necessary know-how and adapted it to specific models. Areva NP is in the process of building two new third-generation reactors in Taïshan. Negotiation of these contracts highlighted certain special features, such as the cultural differences between the French company and the Chinese, the attitudes of Chinese clients which are sometimes disconcerting, and great lack of transparency in the decision-making process. These will be the last reactors constructed by Areva NP in China because the Chinese are ready to make these reactors themselves. They are currently clients but they will undoubtedly become partners in the future, bringing low-cost means of production for the construction of numerous reactors which Areva NP intends to build throughout the world.

Summary translated from French by Rachel MARLIN.

• The entire article was written by Jacques BERTHIER.

To obtain this article, you can :

• download it for free in French (PDF help) or contact ecopar@paris.ensmp.fr (Reference VA030709).

The entire article appears in French in the Journal de l'École de Paris du management N° 80.