Before I became an interpreter for a Chinese company in India, I had no idea of the dramatic differences between work culture in the two countries. This can be a big headache for Chinese businessmen who don't familiarize themselves with local customs.
Recently, I accompanied a subcontractor from a Chinese construction company in India to the work site. By the end of the day, he gave out a cash bonus to a local laborer who had worked especially hard. This is a common measure in China, and more laborers would work harder the next day in order to get the bonus.
However, to the subcontractor's surprise, the bonus he offered caused indignation among other Indian workers, because they felt they were being treated unfairly. The subcontractor was forced to give the bonus to all the other workers that day.
However, the next day, he had to give that same bonus to every worker, whatever their performance was like. Otherwise, they all threatened to strike.
Maybe they were just exploiting an opportunity to bully a boss out of his depth, but there were also fundamental differences in play. In China, many businessmen prioritize efficiency, and use carrot-and-stick measures to encourage it.
However, in India, workers care more about equality, which is ensured through fixed mechanisms. As the subcontractor later found out, the only solution is to inform workers of the standards and methods of performance evaluation in advance. Otherwise, they wouldn't work extra time even if a double bonus will be offered.
In May 2009, the Indian government dramatically changed their visa policy. Business visas are restricted to a month at most, and work visas require over six months to get. This greatly affected many Chinese companies in India, who previously relied on imported labor.