Chinese And Americans Negotiations Style Cultural Studies Essay

China has been going a cardinal participant in the universe phase since last two decennaries for her rapid development of economyi??military force and so on. More and more states regard China as an emerging market for her immense possible market and large sum of possible mark clients ; hence, many states want to run concern in China. Harmonizing to the study, America is one of the biggest concern spouses of China ; it continuesA to maintainA China ‘s secondA largest trading spouse, A bilateral tradeA amounted toA 102.34 billion U.S. dollars, an addition ofA 11.4 % . Among them, A China’sA exports to the U.S.A $ 74,300,000,000, an addition ofA 6.9 % , more thanA aA one-fourth ofA acceleratingA 1.5 per centum pointsA over the same period accounted forA 17.5 % ofA the entire value ofA Chinese exports ; A importedA 28.04 billion U.S. dollarsA from the United States, an addition ofA 25.6 % , A trade excess ofA 46.26 billionA U.S. Dollars.

AsA tradeA additions, A more and more AmericanA companies have chosenA toA developA the ChineseA market. While the job besides appears, it is hard to negociate with the Chinese. With the 5,000 old ages Chinese traditional civilization, many transnational houses realized that China has her ain dialogue manner. This issue was mentioned by Lucian Pye ( 1992, p.74, cited by Tian, 2007 ) , “ the Chinese may be less developed in engineering and industrial organisation than we, but for centuries they have known few equals in the elusive art of negociating. When measured against the attempt and skill the Chinese bring to the bargaining tabular array, American executives fall short. ”

From the above background, we can see that if the foreign concern people want to make concern in China, larning Chinese dialogue manner is really of import. With unequal cognition and accomplishments of Chinese dialogue manner, it will be hard for Americans to win in striking a desirable trade with Chinese spouses and in developing concern in China. For this purpose, this essay will make a consistently analysis on how to negotiation with Chinese, peculiarly for the Americans.

This essay aims for set out how to understand Chinese dialogue manner and happen out the differences of dialogue manners between Chinese and Americans, to supply utile information on how to accomplish a win-win object. In this essay, the chief organic structure will be the analysis of Chinese dialogue manner. Section one will present some cardinal information of dialogue ; in subdivision two, the Chinese civilization roots will be illustrated ; in subdivision three, the comparing of dialogue manner between Chinese and Americans will be indicated ; in subdivision four, the decision will be given which is even though there are many differences among dialogue manners, the common regulations still existed among these states.


Based on Tian ( 2007 ) , there are two parts contribute to dialogue procedure, which are common involvements and conflicting involvements. However, many bookmans hold divergent positions from different positions. From the societal exchange theory, it defines dialogue as a procedure, which focus on problem-solving communicating for both parties aims for a ‘win-win ‘ understanding ( McCall and Warrington, 1984 ; Graham, 1986, cited by Tian, 2007 ) . Which means it focuses on how to maximise the benefits accruing to all parties. Therefore, it can be seen there is a positive relationship between two parties without aching each other, the struggles will besides be addressed in a manner that benefits all.

Specifically, societal exchange theory insists on a concerted scheme of dialogue. This implies that both parties need to join forces with each other and unify the involvements of all purpose for achieve common benefits. The concerted scheme is illustrated as ‘principled dialogue ‘ . As a principled dialogue, it focuses on: separate the homo from the job ; concentrate on benefits instead than places ; options for common benefits ; take a firm stand on nonsubjective standards and no fast ones and posing. In all, the dialogue parties can derive from dialogue in a nice and just mode. ( Tian, 2007 ) .

Another theory is the game theory. This theory emphasizes on a ‘win or lose ‘ understanding. It considers dialogue as a procedure that both parties communicate with each other in a competitory mode. ( Raiffa, 1982 ; Siebe, 1991, cited by Tian, 2007 ) . It defines dialogue as each party wants to maximise its ain benefits at the cost of the other side. During dialogue all the parties can contend with one another in order to maximise their ain involvements. Hence, we can see that game theory is based on a competitory scheme.

The 3rd theory is called “ cross-cultural ” theory. This theory focuses on a specific type of dialogue, which is the different civilization background. It indicates that different civilizations may take to different dialogue manners. Based on Tian ( 2007 ) , game theory and societal exchange theory have few deductions on dialogue procedure, while the most influential factor is negotiants from different civilization backgrounds need to hold a basic apprehension of each other ‘s cultural environments and dialogue manners ; this will really helpful on the success of dialogue. In this essay, we will concentrate on the cross-cultural dialogue manner to analysis the Chinese and Americans dialogue.

Cultural roots of the Chinese dialogue manner

Tonss of bookmans argued that Chinese civilization can be divided into two facets ; one is traditional Chinese civilization, the other one is modern-day Chinese political civilization ( Tian, 2007 ; Fang and Ghauri ) .

Traditional Chinese civilization

Confucianism is one of the most influential factors on Chinese dialogue manner. There are six basic Confucian values. First it emphasizes on moral cultivation. It regards trust and earnestness as the most of import qualities. Second, it thinks extremely of interpersonal relationships. Guanxi is a major mechanism in the Chinese societal psychological science. Third, Confucianism pays attending on household and group orientation. The 4th factor is the regard of the age and hierarchy. Bing a Chinese who needs to demo regard to the elderly people ; for hierarchy, people should does his responsibility to lend to societal harmoniousness and stableness. The 5th factor is harmony foremost. Confucianism highlighted the demand purpose for harmoniousness in the whole society by moral behavior in all sorts of relationships. The last factor is face, Confucianism educated the people they all should hold ‘a sense of shame ‘ in their heads. Face is a cardinal moral mechanism on Chinese manner of life. ( Fang and Ghauri ) .

Sun Tzu ‘s ploies: which known as “ Ji ” or Chinese ploies, has a immense impact on Chinese strategic concern behavior. Sun Tzu ‘s provides Chinese with assorted sorts of solutions when confronting different state of affairss ; how to derive psychological and material advantage to accomplish one ‘s intent. Chinese negotiant is frequently Sun-Tzu-like strategian, rarely wages a physical concern war but instead might be keen on a psychological wrestle of humor to make a favorable state of affairs to pull strings his/her opposite number into making concern his/her manner. ( Fang and Ghauri ; Chas.W, 1999 ) . The most popular portion of Sun Tzu ‘s ploy is the Thirty-six antediluvian Chinese ploies.

Agrarian outlooks: China has a big agricultural population fir over 4,000 old ages. Even during the Cultural Revolution during 1966-1976, 1000000s of pupils in urban countries were sent to the countryside by Mao Zedong to allow them re-educated by the provincials. Even though most of the pupils went back to the metropolis they still passed their re-educated values gained from countryside to their off springs ; which is wholly different with western states. Based on many bookmans research, ( Tian, 2007 ; Graham and Lam ; Pye, 1992 ) , thrift and endurance are the most outstanding features of the agricultural mentality when Chinese negotiating. So the agricultural outlooks continue to hold a large influence on the manner of thought of the Chinese.

Political Culture

Mao Zedong ‘s bureaucratic heritage and Deng Xiaoping ‘s pragmatism are the most of import political civilizations in China.

Mao Zedong ‘s bureaucratic heritage: this political civilization based on Orthodox Marxist-leninist political orientation with three chief characteristics. First, the leader of the party has the biggest power on political and forces. Second, fragmented and stratified bureaucratic bureaus. Different ministries, state authoritiess, authorities sections and bureaus deal and compete with each other over allotment of limited resources. Bureaucrats typically have good accomplishments of bargaining within the system. Third, the art of endurance in the bureaucratism was duty avoided. The ground for this is how the alone bureaucratic system works. In China, power agencies everything particularly in political, hence, everyone tried really difficult to avoid errors so they can remain at the office as usual. Some of them do everything based on Orthodox Marxist-leninist philosophies, some switching duties onto the others.

Deng Xiaoping ‘s pragmatism: Deng is the leader of China economic system reform which begun with market-oriented economic system reform. During the reform period, Deng had to get the better of the political barriers left from the old period. Therefore, Deng promoted a pragmatist ways of thought within the Party leading, which has fundamental changed the political beliefs, attitudes, values and feelings of Chinese society at larger of all time since. Deng ‘s theory emphasized on pattern instead than theory agencies. Furthermore, Deng besides promoted that “ white or black, it is a good cat every bit long as it catches nice ” , in his position, every bit long as China can accomplish economic development and modernisation, no affair what kinds of the steps are, the steps should be taken.

From the above analysis, we can state that China non merely has her ain traditional civilization, but besides has her complicated political civilization. All of the factors have large impact on Chinese dialogue manner.

The differences between Chinese dialogue and Americans dialogue

Politicss influencei?sLots of bookmans pointed that, China ever has a immense dialogue squad but with small power on decision-making. ( Adair, et Al, 2001 ; Ghauri and Fang ) . To be specific, this power refers to the dialogue squad power. The cardinal ground to this phenomenon is in China, it is barely to divide concern from political relations. In the Chinese Communist civilization, they think political relations is all-pervasive while on the contrast, Americans believe that concern and political relations should be separated ( Pye, 1992 ) . Ghauri and Fang besides pointed that, if you want to make concern in China, you should pay adequate attending to the Chinese authorities because the authorities is the “ biggest foreman ” and Chinese endeavors are merely their “ mills ” . Chinese economic construction is more centralised while Americans ‘ is more unfastened and free. They besides indicated foreign houses should be sensitive to the “ guiding rules of China ‘s societal and economic development set Forth by the Chinese Communist Party and the Chinese authorities, and besides, should do a careful survey of the Chinese authorities ‘s precedences and execution policies ” . In the contrast, Americans respect concern is concern and political relations is political relations, which are wholly different facets in the dialogue procedure.

Legal Influence: The Chinese see the interpersonal relationship is more of import than legal contract, which is wholly different from Americans. As Pye ( 1992 ) mentioned, “ Chinese civilization traditionally shuns legal considerations and alternatively emphasiss ethical and moralist rules, whereas Americans are thought to be extremely legalistic. ” So historically, Chinese and western civilizations has rather different positions about the importance of legal procedure. The Chinese seem to be bound by their tradition non-legalistic patterns. Tian ( 2007 ) besides indicated that, the Chinese negotiants do non pay much attending to legal understanding as western people do. They focus more on interpersonal trust, friendly relationship and guanxi. Some American business communities argued that they learned that among Chinese it was a traditional manner to seal understandings with merely the unwritten committedness, a nod of the caput, or a handshaking ( Pye, 1992 ) . This Chinese dialogue manner is closely related to the Confucianism that required people to appreciate interpersonal relationships instead than Torahs and legal ordinances ; and besides, it is a contemplation of emphasizes on the harmoniousness. In the contrast, Americans consider legal contract is much more persuasive than personal relationship. As Pye ( 1992 ) indicated that the bulk of American negotiants are attorneies, which means that the Americans consider the contract is the most of import portion of dialogue.

Holistic Thinking: Graham and Lam pointed that ; the Chinese ever see the inquiry from a whole image ; nevertheless, the Americans think consecutive and individualistically. Chinese negotiants ever start dialogues on the general rules foremost and go forth inside informations to the ulterior phases ( Tian, 2007 ) . Besides, Pye ( 1992 ) pointed “ the Chinese seek understanding on generalizations, brooding on overall considerations, and avoiding specific inside informations every bit much as possible, go forthing, as they like to state ‘concrete agreements ‘ to later dialogues. ” But the Americans are more in favor of solve jobs one by one. Why the Chinese like usage this dialogue manner? The ground can be considered consistent with Mao ‘s bureaucratic heritage ; the party leaders ever set the general rules and the followings had to hold upon before any inside informations can be discussed. Harmonizing to Pye ( 1992 ) and Tian ( 2007 ) , some western business communities argued this as a negotiating gambit. They argued that Chinese negotiants can take advantages of the signed general rules at the ulterior phase of dialogues. This gambit is rather obvious when it comes to the particular inside informations. Assume that both parties were reasoning approximately inside informations while at this minute, Chinese negotiants can assail the other side for non following with the general rules signed before. Therefore this can be called one of the 36 stratagems- ” shut the door to catch the stealer. ” Nevertheless, even the western business communities consider this as a gambit it still has its advantages. Pye ( 1992 ) said that “ Chinese can rapidly turn an understanding on rules into an understanding on ends and so take a firm stand that all treatment on concrete agreement must further those agree-upon ends. ” This step is utile during negotiation procedure approved by a American: “ by doing each understanding between us move from a more general to a more proficient degree, the Chinese can invariably reason that what they were take a firm standing upon in operating processs was logically consistent with all that had been agreed to before… .they certain taxed out forbearance and ever put us on the defensiveaˆ¦ ”

Information exchange ( emotional facet ) : the Americans pay more attending on the information exchange during dialogue procedure ; they can accept the treatment as chief method to work out the jobs, even the treatment is really intensive. In contrast, the Chinese are concentrating whether the counter party gives their “ face ” or non. In Chinese concern civilization, one ‘s repute and societal standing remainder on salvaging face. Assume that foreign business communities cause the Chinese embarrassment or lose face, even accidentally ; it can be black for dialogue procedure. Furthermore, Tian ( 2007 ) , Ghauri and Fang, found that face is highly of import for Chinese. They argued that if person gives adequate face to the Chinese negotiants, they will act as a “ Confucian gentlemen ” otherwise they will return you back or set block in the dialogue procedure. Therefore, from this position we can see that compared with the Americans, the Chinese are believing extremely of “ face ” .

Time issue: Americans in favor of fast meeting when dialogue, while the Chinese need much more clip to construct the trust with counter party before dialogue. The ground is influenced by Confucianism ; Chinese merely do concern with person they can swear ; while trust edifice is a time-consuming issue. As one Chinese negotiant said “ they [ western houses ] want to come and subscribe the contract rapidly and make non cognize that [ if ] we do non understand each otheraˆ¦there is no concern relationship foremost, we have to cognize and swear each other, and so we sign the contract! “ ( Ghauri and Fang ) .

Patience: Compared with the Chinese, Americans are more impatient. Equally long as an initial understanding has been reached, the American negotiants become more than of all time impatient for the consummation of a trade, for they tend to presume that the measure from general understanding to detailed substantial dialogues should be a short 1 ( Adair et al, 2001 ) . In many instances, the restlessness of the Americans is fuelled by the fact that it is non convenient, or economical, to maintain their full negotiating squad in China making nil ( Pye, 1992 ) . For the Chinese, nevertheless, this may be the clip for significant hold. The functionaries who have been speaking with the Americans may non hold the authorization to travel farther and must wait for the farther instructions. The Chinese are besides short of adept endowment and therefore lower functionaries may hold to expect the glade of constrictions in their ain hierarchies. Besides, Chinese cells frequently seem truly to experience that one time there has been an understanding in rule, praises are in order, and hence, they are in no haste to acquire into the potentially troublesome haggle over inside informations.

Negotiation squad: the Chinese dialogue squad tends to be a big one but indecisive compared with Americans ‘ . Harmonizing to Tian ( 2007 ) , a western man of affairs pointed that it is common that tonss of people from carious authorities sections and committees ( such like planning, economic and foreign trade committees and the similar ) get involved in the dialogue squad. Apart from authorities functionaries, some representatives from assorted sections of the Chinese company are frequently besides invited to take part in the negotiating squad, aims for avoid possible ” non-collaboration ” in the long term. The characteristic of the Chinese dialogue manner is related to Mao ‘s bureaucratic heritage. Economic planning has been playing a cardinal function even after reform since 1978 ; accordingly, fragmented bureaucratic establishments have to keep control over specific resource, which is even true at the endeavor degree. As a Chinese negotiant admitted “ when it comes to dialogue of a laager undertaking in which assorted sections are involved, if you do non inquire each of these sections to come, they will likely do ailments and wo n’t back up your work really much in the futureaˆ¦therefore, in order to organize our work, we asked every section to direct one representative to organize our negociating squad ” ( Fang, 1999, p.208, cited by Tian, 2007 ) .

Nothing is of all time concluding: Americans hold the position that one time the contract being signed, so all the parties should demo up the expected behavior in a fixed clip ; purposes for perform the contract in clip. The Chinese seem to hold less feeling for the play of understanding and small outlook that any formalized contract will stop the procedure of dialogues. Lots of western negotiants argued that the Chinese brought up proposals for revising what had been agreed upon, right on the heels of subscribing a contract. Thus although they are reportedly scrupulous in adhering to understandings, they have no suppressions in suggesting alterations. What is more, the Chinese functionaries do non look troubled by the idea of suddenly ending contracts ; or in other words, the Chinese do non lodge to the contracts as Americans do. As mentioned above, the Americans are more legalistic, but the Chinese think the sudden alteration or expiration of the contract do non hold influence on the relationship between the westerners while this is wholly different compared with the Americans. In Americans ‘ position, one time the understanding being signed, the dialogue procedure is over while the Chinese ever tend to go on the procedure with continuously new inquiries ( Pye, 1992 ) .

Chinese ploies: The Chinese more likely to utilize ploies during the dialogue procedure, while the Americans ever being honest and humourous. Tonss of bookmans pointed that the Chinese in favor of utilizing ploies ( Ji ) during dialogue, which is excessively difficult for them to place ( Tian, 2007 ; Fang, 2006 ; Miles, 2003 ) . For illustration, when Ericson entered China during pre-negotiation phase, the Chinese changed negotiants all of a sudden, was being regarded as “ steal the beams and alter the pillars ” , as mentioned above, the Chinese merely making concern with the people they can swear with, without solid trust it is barely for them to be genuinely honorable, therefore they will utilize ploies. As one negotiant admitted that they used the ploies unconsciously but the ploies occupied more than 10 % in the dialogue procedure. Using ploies, for the Chinese, is profoundly influenced by the traditional Chinese civilization.

Risk-taking: Americans are the risk-takers compared with the Chinese. They are frequently prepared to set frontward new and advanced thoughts, suggestions. This is frequently done without anterior blessing from central offices and represents the hazard the caput of deputation is prepared to take, in order to make consensus. This trait is widely recognized and extremely respected by other deputations. Compared with the Americans, the Chinese negotiants are more conservative during dialogue, without anyA backA guaranteeA or the higherA way from theA upper degree, the Chinese negotiants tend to be really careful, speak and act carefully ( Adler et al, 1992 ) .

Price-sensitive: the Chinese are sensitive to monetary value. Lots of alien negotiants said that the Chinese frequently maintain inquiring for lower monetary value during the whole dialogue procedure. This difference compared with Americans discussed in about all the influential surveies on Chinese dialogue manners. Such like Tian ( 2007 ) , Pye ( 1992 ) . This sensitiveness closely related to the Chinese agricultural outlooks, which emphasized thrift. It besides related to Deng ‘s pragmatism, based on the backward world of China, which is, the resource is really limited that the Chinese have to pay attending to the cost issue. Furthermore, the Chinese would believe that we have provided you with a immense market with immense possible net incomes ; you need to give us favor back.

The similarities between Chinese dialogue and Americans dialogue

Protectionism: some bookmans argue that the Chinese ever being protective to the local industries, particularly for the national key industries, such like IT, telecommunication industry. It is likely the common phenomenon in every state. Recently Huawei, the Chinese telecommunication endeavor wanted entered America but rejected by the national security section for the ground that the telecommunication is a cardinal industry and it besides consistent with the national security ( Xu, 2011 ) . From this we can see that, no affair China or America, both of them pay particular attending to the cardinal industries.

Matter-of-fact: The Americans tend to be really practical, matter-of-fact 1s. They do non involvement in high-sounding rhetoric or addresss in the dialogue procedure. As the Chinese, they are really practical people as good. They have the clear intent when dialogue, which is obtain the favor and make the win-win consequence.


In this essay we chiefly analyzed the differences and the similarities of the dialogue manner between Chinese and Americans. It is barely to give a definite decision which is better than the other 1. But for China, there are four points for them to amend compared with the Americans in the dialogue procedure in the hereafter. First, the Chinese should larn from the Americans they prefer the legal contract instead than the personal relationships. Since presents, China is acquiring more involved in the universe concern, confronting assorted sorts of antagonistic dialogue parties, different civilizations around the universe, the concern demand to establish on the legal contract. It should be seen as a secure for the concern. With the rapid development of economic and civilization, legal, is going a chief method to protect the rights and involvements between the people, the Chinese should acknowledge this. Second, the immense but indecisive dialogue squad should be improved. Due to the alone civilization of China bureaucratism, the Chinese dialogue squad ever bigger than its existent needed. This is a waste of human resource ; besides, each section of the authorities should be separate from each other, each performs its ain maps, if so, the efficiency of dialogue will be enhanced better. But to accomplish this mark, it will take a long clip and the joint attempts of all sections. Third, the Chinese ever behave “ nil is of all time concluding ” even the contract signed already. This is a public presentation of bad religion ; it is harmful for the Chinese to go on making concern with the alien spouses. In other words, the root cause ofA this phenomenonA is the indifference of ChineseA legal construct. For the Americans, they should larn from the Chinese being patient when negotiating, it is easy to do loss due to the determination made when lost restlessness.