ABSTRACT
In this chapter, the authors examine how the 2008 financial crisis influenced levels of confidence and trust between Western and Chinese bankers. They explain the key cultural features of trust relationships in China before moving on to discuss the reputation of Western banks in China prior to the 2008 financial crisis. The authors discuss a variety of perspectives on whether Western investors could be trusted with the task of assisting reforms in Chinese banks. They turn to the interview data and analyze the views of Chinese managers on the perceived trustworthiness of their Western partners. The authors also draw on interviews with Western managers to describe the day-to-day practices they encountered when in low-trust relationships with Chinese partners. They examine the reputational damage suffered by Western banks following the sub-prime crisis and analyze the consequences of this for business relationships in China.
