Online dictionaries define ‘Guanxi’ as the basic dynamic in personalized networks of influence. Somehow this Chinese pinyin Romanization is far more complicated than “networking” or “relationships”. Although many Westerners find themselves confused by Guanxi and the role it plays in Chinese business, it has been widely acknowledged that one can hardly get things easily done without understanding this unique feature of the nation who have lived here for over five thousand years.

Selling to Chinese consumers is very different from selling to consumers in any other country. Unique local traditions and cultural values have a strong influence on the behaviour, thoughts, and buying habits of local consumers.

China is now a member nation of the World Trade Organization, and its regulatory standards have changed considerably in thirty years. These new regulations tend to favor, for the first time, Wholly Owned Foreign Enterprises over joint ventures.

China first opened its doors to foreign investment in the 1980s with the establishment of the first Special Economic Zones in Shenzhen, Zhuhai, Shantou and Xiamen. Since then many other SEZs have been opened, and a number of other designations have been created to encourage different types of investment.

“Ru xiang sui su” (入乡随俗) is an ancient Chinese saying that means, “When in a village follow the locals.” More appropriately, the equivalent saying in English might be “When in China, do as the Chinese.” This is just generally good advice for travellers, but it is particularly important for business travellers and international businessmen.

No one can predict what will happen during the operation of a business, so crisis preparation is quite important. Chinese business professionals use many of the same techniques Westerners do...