For Chinese business, the means is more valuable than the end

The building of trust through guanxi and renji hexie is linked to the structured societal relationships that are pivotal in Chinese society both at home and abroad. In what can seem to the Westerner at times to be a frustrating delaying tactic, a large amount of effort is invested in establishing personal relationships, often through intermediaries known to both parties, as a precursor to any commercial dealings.

This process grows trust between the parties, providing impetus to moving the relationship up the ladder of cardinal Chinese societal relationships beyond mere acquaintances towards something resembling family.

This approach is rooted in the concept of yin and yang, where finding the way (the Tao) is more important than finding the truth (the means is more valuable than the end). And they are prepared to work hard to find this compromise. The Chinese are famous for their work ethic, instilling it from childhood. The difference is they take this diligence one step further - to endurance (chiku nailao). To the Chinese, relentlessness and endurance are considered far more honourable in society than talent.

Unfortunately this has led to occasional accusations in relation to corruption and other nefarious attitudes, but these opinions tend to illustrate a lack of understanding that this is above all a very moral approach.

It is strange that this approach does not enjoy greater prevalence in the West. Given the increasing amount of opinion devoted to how careful business must be with shareholder funds, efforts to ensure that commercial dealings are conducted with trustworthy parties would seem intelligent to say the least. Perhaps the reason we do not adopt them is they are not expeditious enough. The Chinese are known for their patience - 2,000 years to build the Great Wall is one example. Another might be their leasing of two underdeveloped little islands (Hong Kong and Macau) for a few hundred years, to have them peaceably returned as economic powerhouses. Yet it seems in the West, most things cannot happen fast enough.

These trust-associated approaches are an excellent basis for controlled and flexible non-task sounding of counterparts prior to committing resources. The combination of the two (agrarian and Confucian approaches) is an effective means of risk minimisation in business negotiation.

Does this make the Chinese good long-term thinkers? Their agrarian roots and continuing reliance on the land make them patient, as all things take time to grow.

Their language may also contribute to their success. Just as Western children learn to read Roman letters and numbers at an early age, Chinese children learn to memorise thousands of pictorial characters. The idea of a pictographic language, where words are pictures rather than letters, lends credence to the concept that Chinese thinking tends towards a more holistic processing of information, making them better at seeing the big picture, while we in the West have an easier time focussing on details.

Examples abound where Western companies have not been able to see the forest for the trees. The volume of existing business conducted with China leads to a focus on the negotiation essentials needed to make the deal. Ultimate victory is the aim of Western business, whereas the Chinese are more concerned with the process than the goal. This can be illustrated in an interesting fashion.

One great Chinese pastime is the game of Go. Generally considered a Japanese game, it came to existence over 3,000 years ago in China where it was given the name, Wei-chi. The popularity of Go quickly spread to other countries like Japan and Korea, although in China it has had its good and bad times. Confucius considered it nothing better than a waste of time, but not all critics were as harsh. Chairman Mao required his generals to study and learn from it, and through the Cultural Revolution it was considered a pastime for intellectuals.

Asians play Go and Westerners play chess. Recently these games have been used as explanatory mediums for understanding the competitive positions and strategic thinking of both groups.

As descriptive metaphors for both Chinese and Western business, these two simple games are surprisingly informative. In chess, the objective is simple - capture of the opposing King by virtue of superior offensive strategy, analytical and tactical skill. Success is achieved by destruction of the opponent through movement in one overall direction, and tied games are not uncommon. Opening positions are predetermined, moving through what can be reasonably described as mutually assured destruction with the taking of pieces to arrive at the end game - the final decisive showdown. The victorious King remains, dominating the board. (Former CEO of General Electric, Jack Welch, demanded that GE businesses must be number one or two in their markets - if not they were divested.)