Negotiating with China- I

Amrish Sahgal
June 14, 2007

After four decades of a political standoff, the recent thaw in Sino-Indian relations has seen a renewal of dialogue and the start of substantive negotiations between the two countries. But negotiating with the Chinese—the inscrutable Orientals, as the Europeans called them—requires a very different set of sensitivities and skills from what we Indians are accustomed to. Our negotiating skills have largely been limited to Americans, Europeans, and West Asians, who are distinctly more transparent, open, and non-contextual in their negotiations than the Chinese or the traditional Japanese. 

However, the fact of the matter is that the Chinese negotiation can easily be related to orthodox or traditional Indian cultural values and norms. The problem is that over the last couple of centuries, the Western mode of education has fairly effectively suppressed these conventional characteristics, and we perceive the negotiation process through a highly Westernised prism. Were we to look deep into our roots, we would find many values common with the Chinese, and realisation of these could eventually sensitise us and give us success in our negotiations with them. 

Let us examine where the average Chinese comes from and why he behaves the way he does at the negotiating table. It is imperative to understand the context of Chinese culture and values and compare these with our own reactions or biases on such matters so as to avoid the many pitfalls and misunderstandings that can occur.

Like India, China is a vast nation with many diverse people, dialects, cuisines, practices, and beliefs. What binds this nation together? There appear to be four major binding cords.

The first cord is the common agricultural background. Like in India, most Chinese still live in rural areas and have strong links to the land. As in India, most city dwellers continue to retain their rural links and regularly return to their villages to “renew their cultural energy.” As a result, merchants, middlemen, and officials of certain types are looked down upon.

The second cord is morality. Confucius's writings laid the foundations of Chinese education over 2,000 years ago. He maintained that a society organized under a benevolent moral code would be prosperous and politically stable. He taught reverence for scholarship and kinship. He defined the five cardinal relationships between ruler and ruled, husband and wife, parents and children, older and younger brothers, and friend and friend.

Except for the last, all relationships were strictly hierarchical. The ruled—wives, children, younger brothers—were counselled to be obedient and loyal to their elders, seniors, parents, or rulers. In return, they would be treated with benevolence, protected from harm, and allowed to live in social harmony.

The Chinese are extremely hierarchical. They revere authority, including the authority of age, seniority, position, designation, and intellectualism.

Another great philosopher who helped shape the Chinese psyche was Lao Tsu. He believed that two fundamental forces, Yin (the feminine, dark, and passive force) and Yang (the masculine, light, and active force), are always opposed and complementary to each other, and success lies in finding the Tao or the middle path between these forces. The Yin and Yang, always in collision and collusion, are all-pervading and affect all aspects of life, from medicine to economic cycles. 

The Chinese are known to be very practical people. The philosophy of Confucius and Lao Tsu is grounded in practicality. Not for them the search for some abstract, all-pervading “Truth”. They were and are more concerned with finding the path, the way, the Tao that would lead to success.

Naturally, this affects the Chinese negotiating style. They are more concerned with the manner in which the negotiation process is conducted than with quickly arriving at the end result. This means being important, and a lot of haggling and give-and-take is involved. The process cannot be cut short. A quick result would mean that the best middle path has not been searched for. At the same time, a compromise is a win-win situation and allows both parties to hold an equally valid position.

The third cord is the Chinese pictographic script. Chinese children have to learn to memorise thousands of pictorial characters. Michael Harris Bond, Professor of Psychology at the Chinese University of Hong Kong, feels that because of this, the Chinese are better at holistic information processing—at seeing the big picture—than other people who are trained in sequential alphabetic letters.

The fourth cord is the wariness with which the Chinese people view foreigners. Throughout history, interaction with foreigners has brought nothing but grief to the Chinese, whether the foreigners were European gwailos (literally: long noses) or other Asians like the Japanese. Combined with a great deal of internal squabbling, civil wars, dissensions and so on, the result has been considerable cynicism about the rule of law and rules in general. This cynicism is often reflected in their less-than-desirable commitment to observance of various rules concerning intellectual property rights, patents, missile non-proliferation regimes, and the like. They have learnt over the centuries that the powerful can and do spurn all commitments and understandings with impunity.

Author Note
Amrish Sahgal heads a New Delhi based consultancy firm, Unicorn International, which engages in Corporate and Business Strategy, Media Relations and Technology Transfers.