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The Chinese negotiation.

John L Graham1, N Mark Lam

  • 1Graduate School of Management, University of California, Irvine, USA.

Harvard Business Review
|October 3, 2003
PubMed
Summary
This summary is machine-generated.

Understanding deep-rooted Chinese cultural values, beyond superficial etiquette, is crucial for successful long-term business relationships. Neglecting cultural context leads to negotiation breakdowns and failed deals between Western and Chinese executives.

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Area of Science:

  • Cross-cultural communication
  • International business strategy
  • Sociology

Background:

  • Western business practices often fail to account for the deeper cultural context of Chinese businesspeople.
  • Superficial adherence to etiquette provides limited success in sustained international business collaborations.
  • Communication breakdowns are frequent due to a lack of understanding of Chinese cultural values.

Purpose of the Study:

  • To identify the core cultural differences impacting business negotiations between Westerners and Chinese.
  • To provide insights into the underlying cultural threads that shape Chinese business interactions.
  • To guide Western businesses in fostering successful, long-term partnerships in China.

Main Methods:

  • Analysis of 20 years of work with thousands of American and Chinese executives.

Related Experiment Videos

  • Observation of communication patterns and negotiation outcomes.
  • Identification of recurring cultural themes in business interactions.

    • Main Results:

    • Western negotiators often misinterpret Chinese businesspeople as inefficient or dishonest due to cultural differences.
    • Chinese businesspeople may perceive American negotiators as aggressive and impersonal.
    • Four key cultural threads—agrarianism, morality, pictographic language, and wariness of strangers—significantly influence Chinese negotiation styles.

    Conclusions:

    • A superficial understanding of etiquette is insufficient for successful long-term business in China.
    • Recognizing and navigating deep-rooted cultural values is essential for overcoming negotiation barriers.
    • Understanding these cultural nuances enables the development of profitable and satisfying business relationships.