In contrast, in China, serious business relationships typically develop before any contract is signed or a formal agreement is reached.
How do you test a business relationship? In the US, many would say it comes down to who calls a lawyer first. Americans may have a reputation for taking things to extremes, but the point stands: Western business is built on written contracts.
This is partly due to access to a robust legal system, widely regarded for delivering independent arbitration and judgment. It enables strangers to transact even when trust is not yet established. In effect, the legal system acts as an independent guarantor of trust.
