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he cultural background is a pivotal factor that may affect negotiations, especially if such different cultures as Chinese and American ones are involved.

The lack of confidence in Chinese partner became one of the main reasons for the failure of negotiations. On the other hand, American negotiators were too direct that could be offensive for Chinese negotiators. Instead, the traditional way of conducting negotiations in China was perceived by the American part as cheating or attempt of it. The American part focused on specific business issues, including production facilities, costs, quality and other issues (Pudelko, 2005). On the contrary, Chinese put the corporate philosophy and culture prior to practical issues related to their business.

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Americans were disturbed that they have not started negotiations from the moment of their arrival to China. Instead, they have received warm welcome not only from the part of the company but also from the pa

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