Agreement enforcement in Chinese practice works primarily through relational consequences rather than legal action. Breaking agreements damages the relationship within which the agreement exists — and that relationship damage is the primary consequence. Beyond immediate relationship, your reputation across networks affects future opportunities. Someone known for unreliability becomes undesirable as a partner across their entire network.
Legal enforcement mechanisms exist and matter, but using them represents relationship failure — a last resort when connection cannot be preserved. The preference for mediated resolution reflects priority on maintaining relationships where possible. Your incentive to honor agreements comes from protecting relationships and reputation, not primarily from fear of legal action. Courts are backstops, not primary enforcement.
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