Why do you think the Chinese behaved the way they did? Read the case study and answer the questions below.

Pulling out all the stops A Canadian packaging company wished to extend its activities in the area of convenience foods. It had pinpointed one particular area where it could supply pizza boxes to half a dozen chains of pizza restaurants which operated home delivery services. These chains relied on local suppliers for their pizza boxes and were unhappy with the products supplied, the irregular delivery and, above all, the cost.

Through intensive online research and consultation with the commercial section of the embassy of the People’s Republic of China, the Canadians had managed to find a packaging manufacturer near Shanghai that could provide pizza boxes at a very reasonable price in line with the specifications and quantities required

– and deliver them within the deadlines set.

Negotiations by email and phone had taken place and a deal seemed imminent. Before contracts could be signed, however, it was agreed that both the Chinese and Canadians should visit each other’s headquarters and meet face-to-face to establish complete confidence in their venture and to settle final details. The Chinese were to visit Canada and the Canadians were to fly to China two weeks later.

The Canadian company decided to pull out all the stops to give their visitors a reception they would never forget. They arranged an elaborate welcome ceremony in a five-star hotel, to be followed by an authentic Chinese dinner. Considerable attention was paid to all the details involved – some of the ingredients for the meal had even been specially imported for the occasion.

Eventually the big day came and the Chinese guests were whisked by limousine to the hotel where they were greeted by the Canadian company’s president and management team. Despite the lavish words of praise from the Canadians in front of the hundred guests present, and the bonhomie everyone tried to engender, the Chinese remained reticent and very formal in their behaviour. During the meal the Chinese did not seem to appreciate the effort put into the food they were served. Moreover, they said very little and the attempts by the Canadians to keep the social conversation going eventually ended in silence on both sides.

Despite being promised an exotic Chinese floor-show after the dinner, the delegation made their excuses

(they were tired after their journey) and quietly retired to their rooms. The Canadians were surprised and disappointed. What had gone wrong?