This study examines cultural differences in how negotiators reciprocate, complement, and transform their counterpart’s strategic approach as a result of their and (detection of) their counterparts’ interaction goals and how such strategic sequences predict joint gains. Sixty‐seven negotiation dyads (35 Chinese, 32 US Americans) simulated an employment contract negotiation. In response to counterparts’ competitive goals, Chinese increased distributive complementary sequences, whereas US Americans reduced distributive transformation. In response to counterparts’ cooperative goals, US Americans increased integrative reciprocity, whereas Chinese reduced integrative transformation. In addition, although Chinese used less integrative reciprocity and less integrative transformation, these sequences had a significant effect on their joint profit, whereas such effect was nonsignificant for US Americans. The study provides insights about the impact of culture as domain‐specific knowledge structures on micro‐level communication processes.