Reasons why 'they' like western honesty and a direct approach include:
We are transparent (they can read us like a book), and we tend not to be looking to cheat. Both can be seen as weaknesses, rather than strengths, if only one side plays by the rules. A bit like trying to apply the rules of the Geneva convention whey you are fighting the Taliban.

Thanks everyone for the information. Super helpful. With all of that said. There are still sales that take place in China and trade as well. Is it worth learning the language well enough to sell and market to the people? It's still a huge market, am I wrong? I am currently living in Kunming and my Chinese is like HSK 4 but I'm just wondering if it's worth it to pursue my Chinese or to just abandon ship and head back to America and start fresh there.

@englishbusiness
There are three elements of chinese military strategy, taught to every school child for generations, embedded in this response. Not all understand, but all know these strategies.

Just speaking a language fluently is insufficient to create, grow/sustain, and scale long-term relationships.

You'll need to understand your stakeholders, so you can lead them, influence, them, attract them, as opposed to following trends, which has its advantages and risks. Leaders enjoy the benefit of first kill, while the pack that follows compete amongst themselves for the scraps. This is one of tenets of entrance barriers. While your competitors are fighting over the carcass of last year's kill, you've moved on to the next market or market segment, within your chosen domain(s).

LANDSCAPE AKA BATTLEFIELD
China is not the China most westerners see. It is as diverse and as complicated as Europe in both locations and peoples - aside from the debatable and arguable advantage of centralized control.

HARD OR TECHNICAL SKILLS
2. If you have a business MODEL, it should be long term, difficult to copy, profitable (short term to longterm), sustainable, and scalable. These principles hold true regardless of where you set up shop - but even more so here - as a population density 4-5x that of the USA would logically dictate a competitive environment 4-5x as fierce.

Most successful 1 trick ponies - fail within 3 years. Typically, the first year is sunk cost building up your brand and business. The second year is spent trying to fend off copycats, and the third year is spent shutting down from ludicrously excessive competition, offering poorer cut-rate knockoff services, starving and strangling your baby to death.

That is the reality of competition and we haven't even delved into the force majeur realms of dirty tricks, corruption, and political risks.

Sales take place all over china - but can you survive on their profit margins or in their highly competitive environments until you can establish brand and distinctive differentiation?

Do you have multiple exit strategies, to include catastrophic failure?

SOFT SKILLS
This mostly addresses your short term plan to establish a beachhead, to the longer term organic and ultimately exponential growth. You'll need to have a strong executable technical plan, well trained and loyal staff and loyal stakeholders - but it will ultimately depend on your ability to influence and lead others as a leader and visionary, if you're ever to make it off the beach and push inland.

China is littered with the carcasses of local businesses inspired by brilliant ideas and native level Chinese language abilities.

There are plenty of highly rated international business schools in Europe and America with in-China programs. Unfortunately, book learning does not equate to experience and the nature of business varies completely between sectors - eg. publishing, manufacturing, and service-provision.

If you are serious, just jump in. In some ways, China is a forgiving market, in others, it is difficult.

You will find HR difficult (particularly sourcing highly skilled sector-specific professionals in Yunnan), accounting a pain (definitely hire someone), and legal/licensing irritating (but largely rational and transparent). Telecoms is less stable/reliable. You cannot get a decent international internet connection for love nor money.

You guys have been awesome. Some great information here. I really can't thank you enough. Wish you all well in your endeavors!