{"id":1327,"date":"2026-09-04T15:48:17","date_gmt":"2026-09-04T07:48:17","guid":{"rendered":"https:\/\/lyuandassociates.com\/shanghai\/trust-across-borders-chapter-4-when-trust-is-tested\/"},"modified":"2026-09-04T15:50:01","modified_gmt":"2026-09-04T07:50:01","slug":"trust-across-borders-chapter-4-when-trust-is-tested","status":"publish","type":"post","link":"https:\/\/lyuandassociates.com\/shanghai\/trust-across-borders-chapter-4-when-trust-is-tested\/","title":{"rendered":"Trust Across Borders Chapter 4 \u2014 When Trust Is Tested"},"content":{"rendered":"

Trust Across Borders<\/strong><\/p>\n

Chapter 4 \u2014 When Trust Is Tested<\/p>\n

Published as part of the Trust Across Borders series.<\/p>\n

\n

When Trust Breaks Down<\/h3>\n

Trust is easy to understand when everything goes well.<\/p>\n

A supplier delivers the goods.<\/p>\n

A buyer makes the payment.<\/p>\n

Both sides follow the contract.<\/p>\n

Everyone is satisfied.<\/p>\n

But international business becomes much more complicated when something goes wrong.<\/p>\n

A shipment is delayed.<\/p>\n

The quality is different from what was agreed.<\/p>\n

A payment is made but the goods never arrive.<\/p>\n

A company stops responding to emails.<\/p>\n

A supplier suddenly demands additional money.<\/p>\n

At that moment, something more important than the contract begins to change.<\/p>\n

Trust begins to disappear.<\/p>\n

\n

The Moment Everything Changes<\/h3>\n

Most commercial disputes do not begin with a lawsuit.<\/p>\n

They begin with a small change in communication.<\/p>\n

An email is no longer answered.<\/p>\n

A promised shipment date passes.<\/p>\n

A phone call is ignored.<\/p>\n

A new explanation appears.<\/p>\n

Then another.<\/p>\n

Eventually, the buyer begins to ask a simple question:<\/p>\n

“Can I still trust this company?”<\/p><\/blockquote>\n

This is often the turning point.<\/p>\n

Before that moment, the relationship is commercial.<\/p>\n

After it, the buyer begins thinking about risk.<\/p>\n

And once trust has been seriously damaged, every subsequent action is interpreted differently.<\/p>\n

A delay that might once have seemed normal suddenly looks suspicious.<\/p>\n

A request for additional payment may appear unreasonable.<\/p>\n

A vague explanation may be interpreted as an attempt to avoid responsibility.<\/p>\n

The commercial relationship has changed.<\/p>\n

\n

Trust Does Not Disappear All at Once<\/h3>\n

In many disputes, trust does not collapse because of one single event.<\/p>\n

It deteriorates gradually.<\/p>\n

First, communication becomes slower.<\/p>\n

Then explanations become less convincing.<\/p>\n

Then promises are repeatedly postponed.<\/p>\n

Then the parties begin arguing about what was originally agreed.<\/p>\n

Eventually, the buyer stops asking:<\/p>\n

“When will you deliver?”<\/p><\/blockquote>\n

and starts asking:<\/p>\n

“How do I get my money back?”<\/p><\/blockquote>\n

That change is extremely important.<\/p>\n

It means the commercial relationship may no longer be capable of being repaired through ordinary business communication.<\/p>\n

At that point, continuing to negotiate without a strategy can sometimes make the situation worse.<\/p>\n

\n

Distance Makes Problems Bigger<\/h3>\n

A commercial disagreement between two companies in the same city can sometimes be resolved over a meeting.<\/p>\n

The parties can sit down together.<\/p>\n

They can inspect the goods.<\/p>\n

They can visit the factory.<\/p>\n

They can speak directly with the decision-makers.<\/p>\n

International transactions are different.<\/p>\n

The buyer may be thousands of kilometers away.<\/p>\n

The supplier may be located in another legal system.<\/p>\n

The contract may be written in another language.<\/p>\n

The payment may have passed through several banks.<\/p>\n

The evidence may be scattered across emails, messaging applications, online platforms and documents.<\/p>\n

Every additional layer creates uncertainty.<\/p>\n

This is one reason trust is particularly important in international business.<\/p>\n

Research on interorganizational trust in international business has repeatedly identified cross-national communication challenges, uncertainty and differences between organizations and countries as factors that make trust especially important.<\/p>\n

\n

When a Business Problem Becomes a Legal Problem<\/h3>\n

Not every commercial disagreement is a legal dispute.<\/p>\n

A shipment can be delayed because of a genuine logistical problem.<\/p>\n

A product can be defective because of an honest manufacturing mistake.<\/p>\n

A payment can be delayed because of a banking issue.<\/p>\n

Good businesses understand this.<\/p>\n

They do not immediately treat every problem as fraud.<\/p>\n

The difficult question is determining when a normal commercial problem has become something more serious.<\/p>\n

Consider a simple example.<\/p>\n

A supplier says:<\/p>\n

“The shipment will be delayed for one week.”<\/p><\/blockquote>\n

That may be manageable.<\/p>\n

One week later, the supplier says:<\/p>\n

“There is another delay.”<\/p><\/blockquote>\n

That may still be manageable.<\/p>\n

But then the supplier asks for additional money, refuses to provide evidence, stops responding, and still does not deliver the goods.<\/p>\n

The situation has changed.<\/p>\n

The issue is no longer simply delivery.<\/p>\n

It may now involve breach of contract, recovery of payment, preservation of evidence, and potentially other legal issues.<\/p>\n

Recognizing that transition early can make a significant difference.<\/p>\n

\n

Do Not Confuse Anger with Strategy<\/h3>\n

When money is lost, anger is natural.<\/p>\n

A business owner may want to immediately accuse the other party of fraud.<\/p>\n

They may want to publish negative reviews.<\/p>\n

They may threaten criminal complaints.<\/p>\n

They may send dozens of angry messages.<\/p>\n

Sometimes these actions make the situation worse.<\/p>\n

The objective should not be to make the other side feel afraid.<\/p>\n

The objective should be to maximize the possibility of a successful resolution.<\/p>\n

That requires discipline.<\/p>\n

Preserve the evidence.<\/p>\n

Understand the contractual position.<\/p>\n

Identify the correct legal entity.<\/p>\n

Determine who received the money.<\/p>\n

Find out whether the company has assets.<\/p>\n

Assess the available legal remedies.<\/p>\n

Then decide what action is most likely to produce a result.<\/p>\n

Emotion may explain how we feel.<\/p>\n

It should not determine our legal strategy.<\/p>\n

\n

The Importance of Evidence<\/h3>\n

When trust breaks down, memory is not enough.<\/p>\n

People remember conversations differently.<\/p>\n

Business relationships evolve.<\/p>\n

Employees leave.<\/p>\n

Messaging accounts disappear.<\/p>\n

Websites change.<\/p>\n

Documents can become difficult to obtain.<\/p>\n

That is why evidence should be preserved before a dispute becomes serious.<\/p>\n

Contracts and purchase orders matter.<\/p>\n

Invoices matter.<\/p>\n

Bank records matter.<\/p>\n

Emails matter.<\/p>\n

Messages matter.<\/p>\n

Shipping documents matter.<\/p>\n

Photographs matter.<\/p>\n

Company records matter.<\/p>\n

Even apparently unimportant communications can become relevant later.<\/p>\n

A buyer may initially believe that the most important document is the contract.<\/p>\n

Sometimes it is.<\/p>\n

But sometimes the most important evidence is what happened after the contract was signed.<\/p>\n

What did the supplier promise?<\/p>\n

What did the buyer pay?<\/p>\n

What did the supplier acknowledge?<\/p>\n

What explanation was given for the delay?<\/p>\n

Did the supplier admit receiving the money?<\/p>\n

Did it later demand additional payment?<\/p>\n

Did it refuse to refund the buyer?<\/p>\n

The history of the relationship can become the foundation of the dispute.<\/p>\n

\n

The Other Side of the Border<\/h3>\n

There is another important principle.<\/p>\n

A foreign buyer should not assume that a Chinese company is automatically difficult to deal with simply because it is in China.<\/p>\n

Likewise, a Chinese company should not assume that a foreign buyer will simply give up because the buyer is overseas.<\/p>\n

Modern international commerce creates relationships that cross borders every day.<\/p>\n

The parties may have completely different expectations about communication, negotiation and dispute resolution.<\/p>\n

A buyer may expect a direct answer.<\/p>\n

A supplier may prefer indirect communication.<\/p>\n

One side may see a delay as unacceptable.<\/p>\n

The other may consider it commercially normal.<\/p>\n

These differences do not automatically mean that someone is dishonest.<\/p>\n

But they can create misunderstandings.<\/p>\n

Trust therefore requires not only verification.<\/p>\n

It also requires understanding.<\/p>\n

\n

The Lawyer’s Job Is Not to Restore Trust<\/h3>\n

When I become involved in a commercial dispute, my job is not necessarily to make the parties trust each other again.<\/p>\n

Sometimes that is no longer possible.<\/p>\n

My job is to determine what happened, what rights the client may have, what evidence exists, and what practical options are available.<\/p>\n

Sometimes the best solution is negotiation.<\/p>\n

Sometimes it is a formal demand letter.<\/p>\n

Sometimes litigation is necessary.<\/p>\n

Sometimes, after examining the evidence and the company’s financial position, the most responsible advice may be not to spend additional money pursuing an unlikely recovery.<\/p>\n

That last answer may be difficult for a client to hear.<\/p>\n

But professional advice should be based on the client’s interests, not on the desire to continue a case at any cost.<\/p>\n

\n

Trust Can Be Rebuilt<\/h3>\n

The breakdown of trust does not always mean the end of a business relationship.<\/p>\n

Sometimes a dispute is resolved.<\/p>\n

The supplier refunds the money.<\/p>\n

The goods are delivered.<\/p>\n

The parties agree on a new timetable.<\/p>\n

A mistake is acknowledged and corrected.<\/p>\n

In those situations, trust can sometimes be rebuilt.<\/p>\n

But rebuilt trust is different from the trust that existed before.<\/p>\n

It is usually based on new evidence.<\/p>\n

New procedures.<\/p>\n

New safeguards.<\/p>\n

Better contracts.<\/p>\n

More careful payment arrangements.<\/p>\n

And clearer communication.<\/p>\n

In other words, trust becomes stronger when it is supported by systems.<\/p>\n

\n

The Real Lesson<\/h3>\n

The lesson is not that international businesses should distrust everyone.<\/p>\n

That would make international commerce impossible.<\/p>\n

The lesson is that trust should have boundaries.<\/p>\n

You can trust a business partner while still verifying the company.<\/p>\n

You can respect a supplier while still using a carefully drafted contract.<\/p>\n

You can believe someone’s explanation while still preserving evidence.<\/p>\n

You can hope that a dispute will be resolved while still preparing for the possibility that it will not.<\/p>\n

Trust and caution are not opposites.<\/p>\n

They work together.<\/p>\n

The strongest international business relationships are not built on blind faith.<\/p>\n

They are built on confidence supported by evidence.<\/p>\n

And when trust eventually breaks down, the companies that prepared in advance are usually in a much stronger position to respond.<\/p>\n

\n

Continue Reading<\/p>\n

\u2190 Chapter 3: The Values That Shaped My Career<\/p>\n

\u2192 Chapter 5: [Next Chapter]<\/p>\n

To read the complete Trust Across Borders series, search:<\/p>\n

Trust Across Borders<\/p>\n","protected":false},"excerpt":{"rendered":"

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