“All warfare is based on deception” - A short note on why Sun Tzu's statement remains widely practiced in China today

Deception may be morally wrong to some, but it can be used as a tool to be successful even in today’s way of doing business. This can be particularly important when it comes to doing business negotiations and deals. When dealing with a potential business partner or client, many tend to exaggerate/stress only the benefits that they are going to offer their client. For instance, the Chinese emphasizes how China is a booming economy, provide potentially lower costs, and offer a huge domestic market. Although these statements have truth to them, they are usually not fully explained in detail (the devil is in the details!). Disadvantages, meanwhile, are often shunned during these discussions (for obvious reasons). Their foreign partners or counterparts, meanwhile, are more transparent on what they can offer. Although there are formal contracts after negotiations, these are normally not followed. More often than not, unwritten laws do surface later on. There even are cases in which Chinese companies simply learn and "steal" the technology of their foreign partner, and after that, will separately set-up a business with similar technology.

However, in modern business, these may seem unethical and immoral. As a consequence, there are some conservative companies that refuse to enter China, despite knowing that there are opportunities present.

China's evolution to a market-oriented economy will gradually make business negotiations more transparent and less deceptive. The reputation of the “deceptive” company will surely be ruined when it presents ambiguous facts and dubious agreements. Previously, domestic Chinese companies view that stakes are high in a competitive environment so many would rather go for the deceptive way of doing business, in hopes of accelerating deals and partnerships. However, many would soon realize that the key to long-term success is to adopt ethical business practices.