Many western advisors will tell you to expect deception in China, but it's often just a different vision of what's legitimate and honourable in the competitive arena. It's only deception if the other party expects something different. That doesn't help you much. If you don't know the culture well, it's going to be deceptive in your eyes. So it's safer to follow the rule: expect deception. But don't express disrespect unless you catch them blatantly cheating or lying – and give them the benefit of the moral doubt if they're just backtracking because they got into trouble. It's a delicate game. Protect yourself without being offensive.

It's important not to automatically accept any claims at face value, without good reason. Are they really an old established company with a healthy market valuation, a strong market share, exclusive rights and patents, all the proper certifications, and plenty of orders from Europe? Better check these things out, since their definitions may be different from yours. Is the new plant they're preparing to build really going to bring dramatic improvement in quality and costs? You're putting up the money, so you should be allowed to see the books, though sometimes their claims of inadequate bookkeeping may be valid. You may need help here, since legitimate Chinese accounting practices are different from ours, and in some ways hard to fathom. And finally, don't accept the claim that they have the powerful connections that will make everything work out just fine in the end, because you have no way whatsoever of checking that out. Perhaps at this point they will throw the trust argument at you, claiming that your doubts are undermining a valued relationship. Don't fall for it.

If you're not picky, you'll leave holes they can drive a truck through. "Best effort" sales agreements are not enough. Get the details on their marketing network. Cash in advance is dangerous, no matter how much they throw the trust argument at you. Present it as a strict matter of policy, and point out safer payment vehicles which are readily available. If they can't get a bank to cooperate on a letter of credit, run for the hills. If you're a buyer, insist on a test order. They will talk about not doing test orders because they're building long-term relationships, but don't buy that argument. Chinese firms will do test orders when pressed. Look behind the facade to see if there's real brick and mortar and infrastructure in place. And remember that, if a firm is not very cooperative before the money has been transferred, they'll probably be even less cooperative afterwards. So get everything you can firmed up in advance, even if it threatens to sour the deal. The politeness and respect that you demonstrated from the beginning of the process will serve you well when you have to hold the line at the end.

Even when you reach an agreement, you'll find that many more things than you thought were unclear, or interpreted differently. Be prepared to renegotiate often, and get their agreement on a renegotiation process before you sign.

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