This study explores the dynamics of the managerial relationship in Sino-foreign joint ventures from the perspectives of both Western expatriates and local Chinese. It is based on observations of one joint venture and some formal and informal interviews of a few other joint ventures. Through examining cross-cultural trust, communication, decision making and conflict management, this study has presented some of the problems which have appeared, shed light on their origins and suggests possible resolution strategies. The author argues that mutual understanding between Westerners and Chinese is needed to form a basis for successful managerial relationships. Furthermore, understanding must be based on equality, respect and a knowledge and appreciation of the other people's different customs and forms of self-expression. This study also cautions against the use of Western concepts in pursuing cross-cultural studies of managerial relationships in the Sino-foreign joint venture context.

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