Conflict Management in China

Conflict management in China

Mystische Landschaft, wo sich ein Fluss durchschlängelt, umgeben von landwirtschaftlich bewirtschafteten Feldern

4 field-tested de-escalation strategies

Disagreements in China are often kept beneath the surface for a long time before escalating into open conflict. It is therefore crucial for European executives to understand the subtle signals and have the right strategic tools for de-escalation.

Negative consequences for your company can be averted even in deadlocked situations. We show you four field-tested strategies – from proper conversation management to deploying the top management level.

Making confident decisions and actions in China

In collaboration between European and Chinese teams, unnoticed disagreements can build up over a long period, as Chinese culture often avoids direct confrontation. When the proverbial barrel overflows and a conflict comes to light, the first reaction is often a “shutdown”.

Here, a moderated, controlled escalation may be the only way: Bring the key people together and create a protected framework for ruthless honesty. Only when all accusations and misunderstandings are on the table can the rebuilding of trust begin. A joint, informal dinner can often effectively support this process.

Situation: In negotiations with the Chinese partner side, you face a “wall of silence” that makes any compromise impossible. Official communication is in stop mode.

Strategy: Act sensitively and seek informal conversation with the person in the opposing team whom you perceive as the most constructive and solution-oriented. This doesn’t have to be the highest-ranking person. Suggest a negotiation break and seek a one-on-one conversation. Show genuine interest in the core of the problem. If you speak Chinese in this context, it can create an enormous basis of trust and lead you more quickly to the actual cause of the conflict.

Situation: You are waiting for an overdue payment or the fulfillment of an important contractual agreement.

Strategy: When you need to remind about agreements, pay attention to two things: a) the person delivering the message and b) the wording of the message.

The right person: Deploy the person from your team who has the best personal relationship with the decisive executive on the opposite side, even if someone else would be technically responsible. The personal relationship (Guanxi) is the door opener.

The right message: The message itself, e.g., a payment reminder, should always be formulated in a friendly and benevolent manner. Let your partner know that you value the relationship, but must take consequences if not complied with. This must be communicated clearly, but in a face-saving way.

Situation: The business relationship is in a serious crisis, collaboration has stopped, and existential damage is threatening.

Strategy: Serious conflicts require intervention from the top management level. The personal presence of your CEO from Europe is an extremely strong signal of appreciation and respect. In such conversations, a gesture of humility, such as admitting one’s own share of mistakes, can often have a calming effect and pave the way for a solution. Considering the potential financial damage, such an emergency intervention is a comparatively simple and effective means. Preparing such delicate missions is a core component of our cultural consulting.

Managing conflicts confidently

Navigating conflict situations in China requires deep cultural understanding and strategic skill. If you face such a challenge, an external sparring partner who understands both worlds is often the decisive factor. Let’s discuss your situation confidentially.