This practice is rare in Japan but does occur occasionally in the West. In business terms, it’s referred to as “chicken.” The name comes from the “chicken game,” a contest in which two cars speed toward each other, and the first driver to swerve loses.
For example, after verbally informing a subcontractor of an order for manufacturing, the buyer might later say: “I couldn’t get approval from my boss after all, so please lower the price by 20%. If you can’t, I’ll have to go with another company.”
This puts the subcontractor in a difficult position. If they had already begun manufacturing based on the verbal order, stopping now would result in significant losses. At the same time, the buyer risks being in trouble with their boss if they can’t secure the deal. This creates a high-stakes negotiation where neither side wants to back down. Ultimately, the weaker party—in this case, the subcontractor—often ends up conceding.
This kind of behavior is rare among Japanese companies, which typically prioritize long-term business relationships, reputation, and trust above short-term gains. However, it’s more common in cultures or companies that view business purely as a matter of profit and loss.
When engaging in business in Japan, be cautious—what may be considered “internationally common” might not apply in Japan.
