Chinese companies often operate with a mindset very different from typical Western business culture. While the West emphasizes transparency, win-win negotiation, and and linear planning, Chinese strategy is deeply rooted in indirect competition, long-term setup, quiet positioning, and psychological tactics.

These principles come from ancient Chinese strategic classics — especially the Thirty-Six Stratagems (三十六计) — which continue to influence modern Chinese business, negotiation, marketing, and competitive behavior.

This guide breaks down all 36 stratagems, rewritten for today’s business world, with examples you can use immediately when dealing with Chinese partners, suppliers, competitors, or investors.

🌏 Why Chinese Business Thinking Feels Different

China’s business mentality is shaped by:

Thousands of years of strategic philosophy
Confucian relationship hierarchy
Daoist flexibility and non-direct conflict
Legalist power dynamics and control
Highly competitive market conditions
Fast-paced execution mindset

The result is a mindset that values:

Indirect victory
Strategic ambiguity
Testing before trusting
Attacking weaknesses instead of strengths
Using relationships (guanxi) as leverage
Long-term positioning over short-term wins

Understanding the 36 Stratagems gives you the tactical operating system behind Chinese decision-making.

🧠 The 36 Stratagems — Modern Business Version

Below is the full list, rewritten specifically for business, negotiation, startups, and competition.

1. 瞒天过海 — Hide your real intention behind something ordinary

Launch small, plan big. Move quietly.

2. 围魏救赵 — Shift the battlefield to attack indirectly

Target the area your competitor protects.

3. 借刀杀人 — Use external forces to weaken your competitor

Media, regulators, partners, alliances.

4. 以逸待劳 — Let others exhaust themselves before entering

Enter the market after others burn resources.

5. 趁火打劫 — Take advantage when competitors are weak

Act during their chaos or crisis.

6. 声东击西 — Fake one direction, strike in another

Confuse competitors with misdirection.

7. 无中生有 — Create momentum before product exists

Marketing first, product later.

8. 暗度陈仓 — Advance secretly

Make major moves quietly.

9. 隔岸观火 — Watch conflict and benefit from it

Do not intervene too early.

10. 笑里藏刀 — Hide competitive intent behind a friendly appearance

Be polite on the surface, strategic underneath.

11. 李代桃僵 — Sacrifice small to protect big

Give up minor opportunities for long-term gain.

12. 顺手牵羊 — Take opportunity when it appears

Exploit competitor mistakes instantly.

13. 打草惊蛇 — Test reactions before acting

Soft launch, small announcements, trial balloons.

14. 借尸还魂 — Reuse old ideas with new context

Old solutions, new markets.

15. 调虎离山 — Lure competitor away from strength

Divert attention with false signals.

16. 欲擒故纵 — Give freedom first, capture later

Free access → long-term commitment.

17. 抛砖引玉 — Give small value to attract big value

Use free tools, templates, or reports.

18. 擒贼擒王 — Target the key decision-maker

Secure the leader, win the group.

19. 釜底抽薪 — Cut competitor’s supply

Control supply chain, talent, or partners.

20. 混水摸鱼 — Gain advantage during uncertainty

Move fast when the market is confused.

21. 金蝉脱壳 — Retreat gracefully while preserving strength

Exit without losing reputation.

22. 关门捉贼 — Limit the options of your opponent

Exclusive partnerships, patents, lock-in systems.

23. 远交近攻 — Ally far away, compete locally

Use external alliances to pressure local rivals.

24. 假道伐虢 — Use one rival to weaken another

Indirect competition through third parties.

25. 偷梁换柱 — Change key elements quietly

Adjust pricing, policy, or product without noise.

26. 指桑骂槐 — Indirect criticism

Hint competitor weaknesses without naming them.

27. 假痴不癫 — Act harmless to lower defenses

Appear simple, observe deeply.

28. 上屋抽梯 — Remove the ladder after someone climbs

Gain advantage after support is given (use cautiously).

29. 树上开花 — Use borrowed resources to appear strong

Government support, partner branding, social proof.

30. 反客为主 — Turn passive position into dominant one

Supplier becomes ecosystem owner.

31. 美人计 — Win through attraction and emotional influence

Modern: brand appeal, charisma, UX excellence.

32. 空城计 — Appear strong when weak

Project confidence to deter competitors.

33. 反间计 — Create distrust within opponents

Talent poaching, narrative shaping.

34. 苦肉计 — Accept short-term pain for long-term trust

Heavy discounting, showing vulnerability.

35. 连环计 — Use multiple strategies in sequence

Layered moves win long-term battles.

36. 走为上计 — Retreat when necessary

Exit, reset, and re-enter stronger.

🎯 How to Apply These Stratagems in Modern Business (Generalized Guidance)

You can apply the 36 Stratagems in:

Negotiations
Market positioning
Competition and differentiation
Partnership building
Crisis management
Startup strategy
Investment and fund-raising

Examples of practical application:

Use #4: Let competitors burn cash first before entering a crowded market.
Use #17: Offer free value to attract larger opportunities.
Use #15: Distract competitors with signals while you build your true advantage.
Use #23: Form alliances with external partners to pressure local competitors.
Use #35: Combine promotions, partnerships, and supply-chain advantages in sequence.

The key is understanding that Chinese strategic thinking prioritizes:

Indirection
Timing
Layered tactics
Psychological leverage
Positioning before confrontation

This allows businesses to compete effectively without engaging in destructive head-on battles.

🏁 Conclusion

The 36 Chinese Stratagems provide a powerful lens for understanding how Chinese companies negotiate, compete, and grow. These strategies remain deeply embedded in modern business culture, shaping decisions in ways that outsiders may find subtle, unexpected, or counterintuitive.

By recognizing these patterns, entrepreneurs and professionals worldwide can:

Predict strategic moves
Negotiate more effectively
Avoid traps
Build stronger partnerships
Compete intelligently

The most successful companies combine Western structure with Eastern strategic thinking — and the Stratagems serve as a timeless strategic playbook.