How the Chinese really negotiate: observations from an Australian-Chinese trade negotiation

Abstract

PurposePrevious research suggests that negotiation style and conflict management strategies are influenced heavily by cultural factors. In the case of the Chinese, findings have largely produced stereotypical views about their behavior, but the authors argue that this position is becoming increasingly blurred in the global economy.Design/methodology/approachData were collected using participant observation during negotiations of a free-trade agreement between China and Australia followed by in-depth interviews with Chinese delegates.FindingsConsistent with Confucianism and a Taoism-based value system, there was evidence of strong cultural influence on conflict management approaches. Two a priori Chinese strategies were evident – avoidance and accommodating, with five tactics. However, contrary to previous research, the authors found use of two conflict management strategies normally associated with a western approach – competing and compromising, with five associated tactics.Practical implicationsChinese negotiators are knowledgeable and capable of adopting western negotiation strategies and tactics. The authors advise managers involved in international negotiations with Chinese managers to be cautious when relying on historical stereotypical assessments and to think differently about the emerging Chinese negotiator.Originality/valueFew published negotiation studies involve real negotiations based on actual observations, particularly in an international setting. Contrary to many published studies, we demonstrate that conflict management approaches used by Chinese negotiators have evolved into a blend of traditional Chinese and western styles.