The twist here is that in China the stakes are raised to a level that at times approaches the absurd. One small-seeming cultural snafu here or there can cost an enormous amount of time, money and goodwill. One particularly painful example comes to mind.

A friend once told me of an American businessman she knew who had managed to secure a meeting with two top officials of a major Chinese province, in the hope that he could get them to throw their support behind his business. Obviously savvy in important ways, this man knew enough to make it happen. That already puts him further along than probably more than 99% of Americans doing business in China.

The problem for this man was that he lacked cultural savvy, and as a result unknowingly ended up playing fast and loose with resources he might not have even been thinking about as resources: the time and money he had already spent, and the goodwill he had built as a result.

Not having received any intercultural training, the man sauntered into the meeting as if he were in charge, his bearing oozing arrogance. (He should have been politely and firmly — though not fawningly — deferential and respectful, to give them face as gracious hosts.) As the meeting progressed, talk turned to specifics. When the man’s interpreter mentioned something that made the man uneasy, the man expressed some worry. Noticing this, one of the officials said the man should fàngxīn. In this context, the obvious translation into English would be: “Don’t worry,” or “Put your mind at rest.” Instead, the interpreter translated it as “Take it easy.” Feeling pooh-poohed, the man grew more and more angry — highly inappropriate in this setting. (Someone losing his cool loses face along with it.) Things went downhill from there. The meeting ended in disaster, and the American businessman ended up having wasted untold time, money and goodwill: because he lacked some nuts-and-bolts understanding of the Chinese cultural mindset, because he didn’t hire the right interpreter, and — most importantly — because he didn’t have the cultural savvy to realize how quickly his resources could vaporize.

The culture-savvy leader understands that “cultural” issues are business issues. Cultural misunderstandings cost real dollars and hours. In China, the Western leader must always be treating time, money and goodwill as the precious resources that they are, and be mindful of how quickly they can disappear in that environment.