China is a powerful test of the universalistic aspirations of Deutsch’s (1949, 1973) theory of cooperation and competition and, in particular, its utility for understanding the conditions and dynamics through which conflict becomes constructive.

As part of a collectivist culture, Chinese people are expected to be particularly wary of conflict and its open discussion (Leung, 1997). Many social scientists consider the application of Western-developed the­ories to Asia unwarranted, even “imperialistic.” Since 1994, we have conducted cooperation and competition research in China and East Asia by using experi­mental, survey, and interview methods to understand interdependence and con­flict and their manifestations in areas such as organizational teamwork, quality of service, and leadership.

Deutsch’s (1949) original theory aims to explain the development of rela­tionships and values; actors were thought to have motives and goals, without assuming particular values and preconditions. China provides an opportunity to understand how values and other preconditions impact the cooperative and competitive management of conflict. Chinese people are, for example, expected to be particularly oriented toward the projection and protection of social face

The research findings and evidence about mediation mentioned in this chapter are presented in greater detail in Tjosvold and Su (2006). and to rely on high-context, nonverbal communication. Studies have focused on how Chinese values impact cooperative conflict.

Westerners, believing they are open and responsive, conclude that Chinese people avoid conflict and are closed to dealing with differences. They see themselves as democratic and Chinese as autocratic. Our studies explore and explode these generalizations about China.

The chapter first outlines the North American research base for our research and summarizes arguments against generalizing Deutsch’s theory to China and East Asia. It then describes our experimental, interview, and survey research approaches. Our studies show that Chinese people have been found to use open discussions productively, especially within a cooperative context, and to value relationship-oriented, democratic leadership. Research in China is just begin­ning to challenge and extend the theory. The last sections outline research and practical major implications, including how to manage conflict in Sino-American joint ventures.