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The Effect of Culture on International Negotiations 185
a guide to the way in which they should conduct their daily life. They also 
often use Taoist practitioners for ritual purification and employ Buddhist 
priest for funerals.
Chinese negotiations are formal, highly structured and often protracted, 
with frequent breaks in the proceedings. They usually begin with ‘small talk’ 
and put great value on including ‘shared experiences’ between themselves 
and the other nationalities involved in the negotiations. They begin the 
negotiating process by gathering information and assessing trustworthiness. 
They are anxious to obtain as much technical and commercial data about 
the company’s product as possible (Mead, 1998: 236).
The Chinese place an initial emphasis on detailed technical aspects 
before price and terms of the contract, and they prefer to receive detailed 
background information in advance. Chinese negotiators look for a commit-
ment to work together rather than a water- tight contract. The signing of a 
contract is often not the end of the negotiations, but simply a continuation 
of the negotiating process.
By nature, the Chinese seek to avoid confrontation in negotiations. They 
are pragmatists and, whenever possible, prefer to ‘bend with the wind’. They 
believe that patience is a virtue in negotiating and do not openly show 
frustration, anger or impatience. Patience is also considered a demonstra-
tion of superior inner strength and the preservation of dignity or ‘face’, that 
is, self- respect, particularly in the eyes of others. They are reluctant to say 
‘no’, but will hint at various difficulties. In this case, ‘yes’ may mean ‘I hear 
you’, but not necessarily ‘I agree’. They are likely to delegate only limited 
authority to their negotiators and may well require them to refer to higher 
authority for important decisions. Their tactics are often to extract as many 
concessions as possible from their counterparts before making any them-
selves. They dislike surprises and will insist on an agreed agenda before the 
start of negotiations.
The Chinese are basically monochronic, but do not like being rushed 
in negotiations. They value time for reflection and further consideration. 
However, they do appreciate the value of time and are punctual both for 
business and social occasions.
The Chinese place great store on the importance of ‘face’, as it is of signifi-
cance to a person’s image and status in the eyes of business associates. They 
use various communication strategies in order to save ‘face’ and to give ‘face’, 
including indirectness and the use of intermediaries. Counterparts should 
avoid wherever possible backing a Chinese negotiator into a situation which 
provides little room for manoeuvre. The Chinese conceptualization of ‘face’ 
is much more complex than that of Westerners and is viewed as an essential 
component of communication (Cardon and Scott, 2003).
Names are very important to the Chinese. They are seldom called by their 
given names except by close relatives or friends. Surnames come first. They 
place importance on titles and these should be used if known. The Chinese 

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186 Cross-Cultural Communication
are far more comfortable with silence than Westerners are. What is left 
unsaid can be as important as what is expressed directly. Silence can be a 
sign of politeness or a ploy to find out more information.
Chinese negotiations are often lengthy and a signed agreement is seen 
as only an important milestone on a long journey. Their negotiating team 
will include a number of specialists (for example, in finance or technology) 
and their input will often lead to long, drawn- out negotiations. One of the 
important ways of reaching agreement is the use of ‘guanxi’ (connections), 
the importance of knowing people in high places or simply in the right 
place and motivating them to help you by granting a favour. The Chinese 
will often deliberately cultivate such people in the anticipation that a favour 
might be needed in the future. The right connections do much to help lubri-
cate the Chinese system, providing access and clearing the path through 
bureaucracy.
‘Feng shui’ (literally ‘fire and water’) plays an important part in Chinese 
business and social life. It is concerned with the importance of preserving 
harmony between people and the environment. Good ‘feng shui’ is syno-
nymous with good luck and involves harnessing the natural energy of 
the environment to bring good fortune. This ancient philosophy is based 
on the benefits of the positive influences of life forces and is concerned, 
for example, with the correct positioning of buildings, office design and 
positioning of plants, favouring those with rounded rather than pointed 
leaves. All this is an attempt to enhance the chance of successful business. 
‘Feng shui’ experts, who have a combination of the skills of the geomancer, 
astrologer and soothsayer, are regularly consulted.