Law and regulations in China have a different tradition than in the West. Most of the laws in China have been stipulated over the last decades and continue to be changed according to reality. Implementing new regulations might sometimes be done overnight. Chinese lawyers are used to the flexibility needed to deal with this. For a Western company, it might not always be easy to understand.

China's economy, 'a Socialist economy with Chinese characteristics', is a hybrid between a planned economy and a free market economy. This implies a strong political control on the economy. As a consequence, working in China means you need to connect to the government. 

Governmental involvement in many aspects of Chinese life and business life, combined with insider-outsider ethics where information is only shared with insiders, makes it difficult for a Westerner to find out who is responsible for what and which parties have an impact on decision-making. At the negotiation table, the Chinese tend to speak with one voice, even if parties with contrasting interests are seated at the table.

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