Who has priority if you encounter another car at a narrow passage?

When approaching a narrow passage, depending on which side we approach from, we may find one of the two signs shown below. The first one, which is the one in this question, indicates that the oncoming direction has priority and prohibits us from entering the narrow passage unless it is possible to pass through without forcing vehicles travelling in the opposite direction to stop. The second one, on the other hand, would indicate that we have priority of passage over vehicles travelling in the opposite direction.