China Leadership Dilemma Podcast

Every interaction in China can either improve a relationship or trigger a cloak of deception called goodwill extraction. While this might sound dramatic, it simply contrasts the possible outcomes of every engagement you'll encounter doing business in China. Once you understand your interactions in the proper cultural context, you will no longer be surprised by any response or development. In hindsight, it was entirely predictable when a trusted local partner in Nanjing began lying, cheating, and stealing from our company. When a deficit of goodwill reaches a tipping point, it is natural in Chinese psychology to seek substitutes in other parts of the local value chain. Westerners call it corruption, but in Chinese culture, this behavior is justified and socially acceptable. In my upcoming book, we will refer to any "bad" behavior as GOODWILL EXTRACTION because when your Guanxi engine isn't properly maintained and running smoothly, even good relationships will veer off course, and avoiding a