ABSTRACT
The question of relationships is more important in China than in many other countries, however, for three reasons. First, government plays a much more direct role in the economy in China than it does in most Western countries or even in many developing economies. As we noted in Chapter 2, in China the economy is seen as being at the service of the state, and the state does not hesitate to intervene when it thinks the economy is going in undesirable directions. This applies to local as well as central government in the People’s Republic of China, and to a greater or lesser degree it applies to every government in the region. Cultivating good relationships with government is therefore often a critical factor in assuring the success of a venture.
