Wen-Szu Lin, the former the master franchisee for Auntie Anne’s Pretzels in
A telling example is the problem of corruption. Corruption, by an American standard, is rampant in Chinese business and goes unchecked. Payoffs and bribes can be factored into the cost of business in a country where it is endemic, but China it is difficult to predict who is going to require a payment — or if what's perceived as a 'bribe' by western standards is actually a display of respect in China.
Here's an excerpt an article Lin wrote for Shanghaiist:
How does that translate to an
Certain markets are open about corruption, where officials come right out and ask for payment for approvals. These markets are actually easy to navigate as it is simply a matter of costs built into all interactions with officials. For markets like China where only certain officials want something yet do not ask or accept directly, the onus is on the businessman to find common friends or relatives to the official to make the deal happen. Add in a layer of cultural sensitivity where a gift is often seen as show of respect rather than the underlying value itself, each case becomes circumstantial on the situation. It is definitely not black and white and must be treated as individual cases.
Read More: 10 things I learned about being an entrepreneur in China that I wasn't taught in business school >