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Explores the nature and Confucian roots of selected conflicts identified by Chinese and Westerners when working together in China‐based business joint ventures. Highlights, in particular, that the passive and polite Chinese communication practices are in direct contrast to the Western tendency to be direct and articulate with co‐workers regarding business issues; the proactive, risk‐taking behaviour of the foreigners to identify and resolve problems early enters into conflict with the Chinese preference to maintain harmony and peace by avoiding initiative taking; and Chinese respect for authority and seniority conflicts with the Western preference for competency‐based business practices. Also assesses the different approaches to the treatment of information. Advocates that both Chinese and Westerners should work to understand one another’s behaviour from the other’s point of view, suggesting that a better understanding of the roots of these differences in behaviour can help to reduce avoidable conflicts in the operation of joint ventures.

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