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Given the susceptibility of cross‐cultural interaction to misunderstandings and disagreements, conflict management may be especially useful for helping employees develop quality leader relationships with their foreign managers. One hundred and eleven Chinese employees from various industries in Shanghai were interviewed on specific incidents where they had a conflict, defined as incompatible actions, with their Japanese manager or American manager. A qualitative analysis of the incidents and statistical tests of the data supported the hypotheses that a cooperative approach to conflict, rather than competitive or avoidance approaches, help Chinese employees and their foreign managers strengthen their relationship and improve their productivity. Cooperative conflict management may be an important way to overcome obstacles and develop an effective leader relationship across cultural boundaries.

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