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Foreigners when negotiating with the Chinese need to be aware of the fundamentals of face dynamics, a highly delicate process by which social interaction in China is regulated. Face behavior is pervasive in all social interactions, and is one of the major factors which enables one to gain a moral reputation as well as status and prestige. To the Chinese, "face" is their most precious possession, and care must be taken by foreigners when negotiating not to cause them to lose face; and foreigners should endeavor to give face when appropriate. The Chinese, while pragmatic when negotiating, nevertheless, still practice face behavior and are receptive to endeavors to give and maintain face.
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Brunner et al. (1988) studied this question.
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