If the Chinese side no longer wishes to pursue the deal, they may not tell you. To save their own face, they may become increasingly inflexible and hard-nosed, forcing you to break off negotiations. In this way, they may avoid blame for the failure. Dining and Entertainment Dining is used to probe positions without any formal commitment. Business is generally not discussed during meals.
Meals are a vehicle for indirect business references.
The Chinese are superb hosts. Twelve-course banquets with frequent toasts are a Chinese trademark. The Chinese sponsoring organization generally hosts a welcoming banquet. Foreign guests should reciprocate toward the end of their visits. Invite everyone with whom you have dealt.