What is GOODWILL EXTRACTION in Chinese business culture?

China Myth 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 fatal crash should be the priority of anyone competing inside the Chinese arena.

UPCOMING BOOK

Strategic Pragmatism for De-Risking Post-COVID China: Circumnavigating Cultural and Psychological Landmines Inside the Chinese Arena is a timely and indispensable guide for Westerners seeking to understand how to collaborate with Chinese stakeholders in the post-pandemic era. Drawing upon an overview of China's historical relationship with the West and how perceptions and misperceptions evolve, this book helps readers develop a winning approach to managing the interpersonal relationships they will need to succeed—Guanxi. This book serves students, entrepreneurs, and business leaders curious about assembling a repertoire of tactics and strategies that better align with the emotional psychologies of Chinese players and the rigid national sentiments they exhibit inside the Chinese arena.

New Author Page: https://www.provocativechina.com/