The Chinese Negotiation
Graham, J. L. & Lam, N. M. (2003 ), Harvard Business Review
Americans about Chinese: inefficient, indirect, dishonest
Chinese about Americans: aggressive, impersonal, excitable
The Roots of Chinese Culture
Threads:
1. Agrarianism
Traditional agriculture, most people live in rural areas
Loyalty and obedience to familial hierarchy
2. Morality
The writings of Confucius; strict hierarchical relationships
3. Pictographic language
Chinese thinking tends toward a more holistic processing of information > seeing the big
picture
4. The Chinese people’s wariness of foreigners
Learned the hard way > long and violent history of attacks from all directions
Chinese negotiations:
Chinese negotiators are more concerned with the means than the end, with the process more
than the goal
Best compromises are derived only through the ritual back-and-forth of haggling, cannot be
cut short and allows the two sides to hold equally valid positions
Chinese use silence and patience as formidable weapon against American impatience and
volubility
The Eight Elements
1. Personal Connections
Favours are almost always remembered and returned, but without hurry: long-term
reciprocity: enduring personal relationships
Bad manners are immoral
2. The Intermediary
Suspicion and distrust characterise all meetings with strangers
First step to trust is non-task sounding; personal links
Only a native Chinese speaker can fully understand the language
3. Social Status
Extremely formal
Advice: only send negotiators with the same social status or the Chinese will feel insulted
1
Graham, J. L. & Lam, N. M. (2003 ), Harvard Business Review
Americans about Chinese: inefficient, indirect, dishonest
Chinese about Americans: aggressive, impersonal, excitable
The Roots of Chinese Culture
Threads:
1. Agrarianism
Traditional agriculture, most people live in rural areas
Loyalty and obedience to familial hierarchy
2. Morality
The writings of Confucius; strict hierarchical relationships
3. Pictographic language
Chinese thinking tends toward a more holistic processing of information > seeing the big
picture
4. The Chinese people’s wariness of foreigners
Learned the hard way > long and violent history of attacks from all directions
Chinese negotiations:
Chinese negotiators are more concerned with the means than the end, with the process more
than the goal
Best compromises are derived only through the ritual back-and-forth of haggling, cannot be
cut short and allows the two sides to hold equally valid positions
Chinese use silence and patience as formidable weapon against American impatience and
volubility
The Eight Elements
1. Personal Connections
Favours are almost always remembered and returned, but without hurry: long-term
reciprocity: enduring personal relationships
Bad manners are immoral
2. The Intermediary
Suspicion and distrust characterise all meetings with strangers
First step to trust is non-task sounding; personal links
Only a native Chinese speaker can fully understand the language
3. Social Status
Extremely formal
Advice: only send negotiators with the same social status or the Chinese will feel insulted
1
