What relation means here is friendship, understanding and mutual trust. Western people may meet in a short time for business deal when mutual benefits can be perceived. Business is usually official rather than personal. On the contrary, Chinese people would like to make friends first before any business. They then learn each other well and find opportunities for cooperation.
Business is usually personal rather than official.
Business deal is based on mutual understanding and trust rather than law and contract. Furthermore, since referral is also a main source of business opportunities in Chinese communities, there is also a group pressure to keep promises. These different cultures of course have their pros and cons. However, in view of the legal environment in China, foreign businessmen are advised to cater more for the Chinese approach of business. In China's Free Market Reform Hong Kong has adopted the free market economy for a long time and it is also the hub of the eastern and western culture.