The Sichuan basin is crisscrossed by rivers and covered with fertile land, resulting in a warm climate and an economy and history of self-reliance. Rich natural conditions have bestowed a relatively high level of wealth and stability on generation after generation of Sichuanese, while geographical isolation has fostered conservative attitudes and relative complacency. As an old Sichuan saying goes, "Business life lasts 60 years [one generation], but cultivating land can generate money over 10,000 years." As a result, the Sichuanese were traditionally uninterested in business and tended to lack commercial drive, at least compared with people in other parts of China.

After the opening and reform of China began, Sichuanese began to leave the basin for new opportunities, with some of them becoming businesspeople and entrepreneurs. Only a small minority wanted to take the risk of leaving their homeland, however. Most Sichuanese who left Sichuan have ended up as hired hands; relatively few are bosses.

Yet this is not to say that Sichuan's human capital is inferior to that found in other parts of China. Sichuan is home to many of the firms that make up China's military-industrial complex, because both the Nationalist and **** governments considered Sichuan a safe base, far from foreign threats. Sichuan ranked first in scientific and technological talent in several national statistical surveys conducted during the 1990s. For many years, Sichuan has been among the top regions in terms of scientific and technological innovation, but many of Sichuan's innovations have been capitalized on by rich companies from coastal regions. For example, a Sichuan technician invented a multipurpose wrench. The technician initially priced the wrench at ¥30,000 ($3,629), but nobody was interested. Later on, it was sold to a company from the coast, which produced it successfully for export.

Sichuanese, who believe that "one cannot be successful without credibility," (min wuxin buli) are known for their honesty and sincerity. Once they have made a promise, they will do all they can to realize it. Thus, borrowing and lending money among Sichuanese was traditionally done orally, without contracts. This emphasis on credibility spills over into business. Iin one 1995 national survey of counterfeited goods conducted by the China Association of Quality 10,000 Miles Promotion (Zhongguo Zhiliang Wanlixing Cujinhui), Sichuan was listed as the least-counterfeiting province.

Sichuan has long been a center of Taoism and has been subject to strong Confucian influence. Thus, Sichuanese tend to emphasize harmony and moderation in their daily interactions. They tend to believe in the tenet of forgiveness whenever possible. Even when they are right, they believe that they should not gloat. Sichuan's traditional tea houses were sites not only for relaxation and entertainment, but also for conflict mediation and resolution.

The Sichuanese are known to emphasize practicality and have little vanity. Sichuan native Deng Xiaoping's reform slogan that "A good cat, whether black or white, is one that can catch mice," came originally from a popular Sichuan saying. The Sichuanese are also known for their hard work and tenacity. A typical example is mountainous Chongqing's "pole army" (bangbang jun), porters who eke out a living by carrying heavy bags suspended from poles on their shoulders for little compensation. For foreign businesspeople, the Sichuanese work ethic means that as long as business terms are reasonable and negotiated in good faith, the Sichuanese are easy to work with.

Source: This is an excerpt from an article originally published in the Sept-Oct, 2004 .issue of the China Business Review. Reprinted with the permission of The US-China Business Council, Washington D.C.