What do ancient Chinese martial strategies have to do with innovation?
- Dr. Babette Sonntag
- Apr 8
- 7 min read
This blog post is not about impulses from the Japanese universe, but about a strategic treasure made in China.
I was familiar with stratagems as ancient Chinese wisdom when I repeatedly encountered them while working on a German-Chinese M&A project. At first, it was just a feeling that certain behaviors or reactions of our Chinese partners seemed somehow familiar. But then I recognized clear parallels to the Chinese stratagems. From deception to relationship building—in my opinion, anyone who knows the 36 stratagems is well prepared to remain on equal footing in negotiations of all kinds, not just with Chinese business partners.
And what does ancient Chinese martial strategies have to do with innovation?
Ancient Chinese martial strategies: The 36 strategems and their purpose
The Chinese 36 Stratagems are one of the most fascinating collections of strategic wisdom developed in China over centuries. They range from simple deceptions to complex chess moves that have influenced politics, economics, and the military.
Their origins date back to the Warring States period (475–221 BC) and were first systematically described in an anonymous text from the Southern and Northern Dynasties (420–589 AD). The collection is based on even older wisdom from "Sun Tzu – The Art of War" and other strategic texts. Based on Daoist and Confucian principles, they describe skillful maneuvering in complex situations in warfare, politics, and business.
The stratagems are more than just a collection of lists—they are deeply rooted in Chinese culture and reflect a strategic mindset based on flexibility, adaptability, and long-term success. Their application extends far beyond military purposes and continues to influence economic and business decisions in China to this day.
Each of the 36 stratagems describes a clever method of gaining an advantage in a conflict situation – be it through cunning, deception, tactical retreat or the deliberate formation of alliances.
A well-known example here is Strategy No. 6: "Make noise in the East, attack in the West" – a principle that describes how to mislead the opponent with a distraction while striking elsewhere. In the modern business world, this can mean deceiving the market with a seemingly minor innovation while secretly working on a revolutionary technology. Applied to negotiations, the negotiating partner can be surprised with a larger demand and persuaded to make concessions after previously compromising or dismissing another, seemingly important issue.
Importance of stratagems for business success in general
From a Western perspective, strategic action in China is not always straightforward, but rather follows indirect paths and seemingly detours. This sometimes seems complicated or incomprehensible to us. Anyone negotiating with Chinese companies or seeking to gain a foothold in the Chinese market should understand that flexibility, the art of deception, and long-term planning are essential components of the business culture. It is obvious that a deeper understanding of Chinese strategies can be extremely helpful, especially for doing business with Chinese partners.
But even in our Western world of daily business, we have to negotiate compromises every day and find new ways to achieve our project goals. Therefore, I consider knowledge of stratagems to be an effective success factor for us as well.
Stratagems are formulated as parables that need to be translated into real life. Here, I'll apply four examples to "normal" everyday life. Please note that there might be variations in translation:
Stratagem 6: "Make noise in the East, attack in the West" – means: conduct deliberate diversionary maneuvers to surprise the other party with the real issue. Can be used in negotiations to gain agreement on crucial issues.
Stratagem 14: "Steal the stepping stones from the river" – means securing crucial resources, information, or positions before the competition can access them. Can be used to convince decision-makers with important exclusive information during project staffing or investment pitches.
Stratagem No. 27: “Break the beam and steal the supports” - means: A business partner could deliberately show weakness (on less important issues) only to regain negotiating power later.
Stratagem 33: "Burning the grass to catch the snakes" – means: Using clever market maneuvers, project decisions, or communication to force competitors to reveal their true intentions. For example, provocative communication can be used to uncover hidden opponents or recognise dangers through simulations.
Business, no matter where it's happening, is conducted strategically. Although Western companies often focus on transparency and quick deals, compromises—whether large or small—are often a long-term, recurring game. Insisting on a predetermined path to the goal is counterproductive. Startups and technology giants like Alibaba or Huawei, in particular, use flexible strategies to gain advantages. The ability to exploit situations for project or business success and to adapt to new situations is essential.
Helpful strategies for innovation management in particular
The 36 stratagems can be a source of inspiration for innovation management. Developing and positioning new ideas (in one's own field, within one's own company, in an investor pitch, etc.) requires the ability to surprise, react flexibly and quickly, and build an information and know-how advantage. Innovations arise not only from creativity, but also from skillful strategic action. This can be particularly crucial for companies operating in highly competitive markets or developing disruptive technologies.
Here I will give four more examples which, in my view, are excellent impulses for effective innovation management (note that again the translation form Chinese can vary):
Stratagem No. 1: “Deceive the sky to cross the sea”
Meaning: Changes are often difficult to implement, especially if they are perceived as too radical. Instead of abruptly introducing new processes or products, it may be wiser to initiate change gradually and seemingly "harmoniously," thus minimizing resistance.
A practical example: Apple introduced the iPhone in 2007 not as a revolutionary smartphone, but as a hybrid of an iPod, a phone, and a web browser. This smooth transition helped accustom the market to the idea of a multi-touch smartphone without existing mobile giants immediately recognizing the threat.
Application for innovation managers:
Introduce new technologies gradually rather than selling them as disruptive changes.
Communicate internal change processes in companies as an “expansion” rather than a “revolution”.
Turn early opponents of innovation into allies through soft introduction.
Stratagem No. 17: “Throw a brick to get jade”
Meaning: You give up a small investment or idea in exchange for a much more valuable response or innovation. This principle is particularly suitable for open innovation and co-creation - without the intention to deceive, of course.
A practical example: Google initially releases many of its technologies as open source (e.g., TensorFlow for AI development). This gives the company access to a huge developer community that voluntarily improves, expands, and tests new use cases. Google benefits without having to do all the development work itself.
Application for innovation managers:
Publish small, incomplete innovation approaches to encourage partners and customers to develop further.
Use open innovation platforms to incorporate external expertise.
Launch beta versions specifically to obtain feedback for final product development.
Stratagem No. 30: “Lure the tiger from the mountain to the plain”
Meaning: A strong opponent is difficult to defeat in their familiar environment—you have to put them in an unfamiliar position where they become vulnerable. In business, this often means pulling an established market leader out of their comfort zone.
Practical example: Netflix did not attack the film industry head-on, but first focused on niche markets (e.g. series lovers and international productions) before directly challenging the traditional Hollywood studios.
Application for innovation managers:
Test disruptive innovations first in small markets or niches.
Lure market leaders out of their core competencies and force them to operate in unfamiliar territory.
Use strategic partnerships to secure market share before major competitors can react.
Stratagem No. 36: “Sell retreat as progress”
Meaning: If a direct confrontation is not advisable, it can be strategically wise to appear to withdraw – only to come back stronger later.
A practical example: Microsoft realized that Windows Phone had no chance against Android and iOS. Instead of continuing to struggle with massive losses, Microsoft withdrew from the mobile operating system market – but simultaneously invested in cloud technology and AI. Years later, the company returned as the market leader in the cloud sector and now cooperates with Android.
Application for innovation managers:
If an innovation fails, do not necessarily continue with violence, but rather redirect resources in a targeted manner. It is never 100% the first idea that ends up being ready for the market.
Avoid markets that are not ready for innovation for the time being and reposition yourself at a later date.
Consciously communicate failures as a “strategic retreat” in order not to lose internal and external support.
Conclusion: Approaches from other cultures can be game changers for innovation management
Stratagems open up more flexible ways of thinking
Many German companies rely on structured innovation management, characterized by classic methods such as stage-gate processes or lean startup. The problem? These methods are often too linear and predictable. Chinese stratagems, on the other hand, are not dogmatic but offer situational, flexible solutions. They teach that innovation often arises not from clear rules, but from creative deception, adaptation, and tactical action. A fundamental change in innovation management doesn't have to take place right away: Classic methods can be excellent complements.
Stratagems help to overcome resistance to innovations
One of the biggest obstacles to innovation in Germany is internal inertia: Many employees and managers are skeptical of innovation. Change is often seen as a threat, not an opportunity. What innovation manager isn't familiar with this?
The stratagems offer psychological levers to skillfully circumvent resistance and introduce changes more gently.
Stratagems offer a change of perspective in dealing with crises
In times of crisis, the focus is generally on risk minimization. However, it is precisely crises that often offer the greatest opportunities for innovation – if they are used wisely. Instead of clinging desperately to a loss-making business model, a strategic withdrawal from a saturated market can help focus resources on new innovations. Stratagems offer many suggestions for changing perspectives when evaluating seemingly negative situations.
The 36 stratagems offer a new perspective on innovation management: away from rigid stage-gate processes and towards flexible, strategic innovation tactics and view points that enable smarter, faster, and more resilient action.
In a nutshell:
Multidimensional thinking instead of linear innovation processes
Clever handling of resistance
Strategic use of competitors and partners
Using crises as drivers of innovation
Some links with more background:
Please note: This text is translated into English by using Google Translate - I apologize for any mistakes in this text I may have overlooked.
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