In the PRC, face has to do with the image or credibility of the person you are dealing with. You should never, insult, embarrass, shame, yell at or otherwise demean a person. In ancient times, the chinese warrior chief, after losing a battle, may commit suicide because he has lost face. In the business world, negotiations should be conducted to assure that the person at the other end of the table maintains face even if the deal should not successfully conclude. Face shows up in many ways and really begins early in life.
Chinese children learn it as they are growing up.
As the child grows face puts often severe pressure to excel. Failure to gain admittance to college, or even enter the better colleges, results in a higher rate of suicide as the child has lost face and sometimes cannot cope with the shame. In business, it may be difficult to solicit ideas or obtain survey results. This author has tried a few surveys, both written and verbal. You can always get positive responses, but obtaining critique where subject matter or content needs improvement produces blank pieces of paper and blank stares.