Friendship is a privilege accorded insiders. Outsiders, or strangers, are held to arms-length relationships to which a distinct set of ethical standards applies. Chinese negotiators generally send an inviting signal by calling their newly-met foreign counterparts "old friend." If this flattering salutation does not resonate with the foreign party, the Chinese assume their counterparts to be unwilling to commit to an interdependent, reciprocal friendship, and thus feel no hesitation about pursuing tough, win-lose negotiations.
Chinese business has become increasingly integrated into the international business arena long dominated by the West, thanks to the country's two decades long open-door policy. Its transition to the rules of the game on the global stage has been hastened by an influx of foreign direct investment, adoption of cutting-edge technological and management know-how, and the return of overseas talent numbering in the tens of thousands of individuals. Chinese negotiators' exposure to increasing opportunities to learn international practices and sharpen their skills through cross-border deals has resulted in growing similarity in the business styles of western businesspeople and young, under-40 Chinese entrepreneurs. The central theme of Confucianism is relationships, in particular, interpersonal relationships. In the eyes of the Chinese people, any relationship between businesses is ultimately built upon relationships between individuals. As a Swedish businessman once observed: Business in China is not about doing business between organizations, but about doing business between people. . . . Your successor does not automatically inherit your friends and relationships. As I perceive, Chinese do business with you, not with your company. You can't be blue-eyed and believe that you have made friends through one or two deals. It takes a little more time. Westerners tend to view interpersonal relationships as important, but not prerequisite, to business relationships.
