Cutting in the Middleman: Learning from Ancient Chinese Contract Negotiation

Abstract

This article examines contract negotiations in ancient China and then addresses how they have changed in modern China. First, the broad societal contexts of these two eras are examined and compared, as well as their legal systems. This is followed by a discussion of the court system and how middlemen can be leveraged as a “golden bridge” in forming agreements. The analysis contends that despite a comprehensive legal system, the best approach to negotiate with Chinese counterparts nowadays is to leverage its tradition of using middlemen to insert personal relationships that connect private agreements to public adherence. The role of the middlemen has neglected benefits that warrant reconceptualization as Chinese negotiation practices seep into modern international systems.