Stephen Crabbe makes some astute observations on issues that will become increasingly important to Australia when dealing with any form of relationship with China. My own experience is more limited than Mr. Crabbe's, and consists mainly of commercial discussions and negotiations, but the impact of the cultural polarity was evident every time. The two main themes - the importance placed in the concept of trust between individuals, and the acceptance of obligations over rights - were critical issues that needed to be included in every discussion. And as I was working for a US company at the time, the contrast between the requirements of my management to "stitch up a deal" and my potential Chinese business partners' requirement to develop trust, carefully and thoroughly, was even more marked.

But I fail to see how changing labels will help. Where there is such a fundamental difference in the individual's definition of their role in society, the labels themselves are simply an accurate reflection of the antithetical nature of these perceptions. It would be like changing the label on a bottle of Scotch and calling it lemonade, because people get drunk on Scotch but not on soft drinks. Even if everyone agrees to call it lemonade, it will not change the effect of drinking the contents.

The choice is in fact made at a personal level. If we decide that it is in our best interests to continue with the "linear time model" that is the outward manifestation of our fixation with process at the expense of content, then we will continue to be "westerners", with all the baggage that label implies.

Pericles, glad to know u have encountered cultural difference and noted the importance of developing trust and obligation. I'm in the process of doing this with a client in Singapore. Its clear that far and above the business angle is the human trust and relationship angle.
Now you know me, I can't resist a little bit of biblical woffle each time I post, and if I may quote Paul, he gave us all a good example by becoming all things to all men, (yet not at the expense of Christian principle) that he might save some. (1 Cor 9:22)

One cultural difference I found in Borneo, was quite obscure, and I'd been there for around 8 yrs before I even knew this, which was that to the culture in which I was based, you never ask a person their name directly. I found this out when picked up by a driver on the road where I'd been jogging. As we are prone to do, I attempted to introduce myself "HI, my name is ...., Whats yours" ? at which point he almost choked ! After a few swallows and gathering his senses, he told me his name, but in the most muffled and mumbled tones imaginable.
This name reluctance went back to the days of head hunting, when groups of head hunters would be looking for slaves as well has heads, and would have particular people in mind. Persons of high social status were the more desirable slaves. So, the hunters, when they encountered people in the jungle would always ask 'what is your name'.

Why do we call ourselves a Western nation? Because our cultural roots as a society - our institutions, our basic values and so on - come from a bunch of islands off the western coast of Europe, where people were, for a good long time, aware of living at the western edge of the bit of the world that they knew about.

Brazilian society is fundamentally Latin; ours is fundamentally British. Both are derived from Europe, and another word for "derived from Europe" is "western". Where's the problem? Difference doesn't mean opposition.

Dear David,
your statement about "I can't resist a bit of biblical woffle (waffle?)" brought a smile to my lips. It is the understatement of the millenium.

Why do you cloud every issue with your theological fairytales? That you believe in unsubstantiated, religious mumbo jumbo is your business but boring everyone else with it is quite another.

Give us a break!

Many of the Chinese cultural antecedents Stephen mentions are well known to the academic literature and to a lesser extent known to the business world.

The loci of traditional Chinese thought are patrimonal and familial. traditional Chinese society is highly male dominated and the current generation of males exist on a timeline anchored in the past (ancestor worship) in preparation for the future (sire a son. A person is a (networked) conduit, not an individual.

Particularly, before 1912, women were not permanently part of the traditional family and under Chinese kinship arrangements could be exported as a biological necessity to facilitate the patriarchical lineage systems of other families. Some leagacies of traditional system remain today. Herein, in traditional China, the basic political, economic, legal and religious unit is the males-only family. That is, Mao's assertion "women hold up half the world" hasn't really caught-on.

Similarly, "other" families are intrinsically untrustworthy. Trust is earned over time and guanxi networks formed. However, the aforementioned web of connections are utilitarian, because one needs to go outside the family to live.

Lastly, the Middle Kingdom as the "ultimately" Chinese family, historically, has looked down on other nations as unequal supplicants. Herein, current relationships between the West and China are based on economic opportunism and technology transfer. China tolerates the West to re-establish and reassert herself. Meanwhile, the West is markets for its production and services.Who is playing the better hand? - Only time will tell.

(I have worked in China too.)

Pericles, I worked in Singapore for three years and have dealt directly with Chinese business people. Look out for smoke and mirrors no matter how good the relationship "feels". If you are dealing with a subsidiary make sure you have a GX guarantee or director's guarantee, if you or your company are to exposed financially.

Look at the overall corporate structure. If there are private companies AND public companies, beware. Make sure the latter are not being milked to feed the former. A dangerous tell-tale indication can be a family owned "Holding Company" at the apex of the oganisational chart. Also, be careful with SMEs about to go IPO, as the accounts can be set-up to ensure listing and help the owner cash in share options. A year or two down the track the company makes an accounting disclosure then folds.

If listed: Some Penny stocks are closely held. So, share price is not indicative value. Also, watch out for previously poorly run European companies forming JVs with Chinese companies to re-capitalise on the Singapore exchange after problems in their home environment.

Think serious about obtaining a mercantile agent's report (e.g., D&B).

Sorry, Stephen, the above has little to do with your topic. Just helping Pericles.