This is not the first time my information has been thrown around. And yes I agree about the Chinese business practices.

Just think, Chinese do business over a crap loads of alcohol. Sign contracts and make deals while pissed drunk. They do business solely based on the notion that they have a relationship, not if the company is doing well (They are good at hiding their books too). Get drunk spill a few secrets and if all goes wrong, blackmail. Look at the banking system for example, loans are given out to friends in their "gianxi" and many can't repay them, hence the latest problem in the banking sector. Leaders taking from the people and then bailing to another country. You're not able to question your boss or authority even if they are wrong (even when the company is taking a nosedive).

There is no logical approach to business in China, it's all about make it look pretty from the outside as quick as possible, hide the fallacies and only trust the drunks. Why else to you think during business deals companies send their "best drinker" to negotiate? Not to mention many experienced business men have liver damage from drinking that nasty Bajio over the years.

The way they operate dates back thousands of years. It's based on Confucius principals. However just like modern religion, these principals have been skewered with time. In China when you get cheated, they see it as "I am smarter then you", they don't see it as a criminal act. If you have a bigger network of friends, you can get away with more. Sadly the west only sees dollars signs when investing with China instead of the real picture. But a hard lesson is to come to the west in due time.