While most discussions of cross-cultural management (or mismanagement) are more related to understanding (or misunderstanding) among different national groups that interact with each other under different systems of social norm/culture, this article focuses more on the negative side of misunderstanding between two national groups (i.e., Israeli vs. Chinese) in a given cultural environment (i.e., the Chinese one) by using some of the experiences of Israeli companies operating in the PRC as examples. The article has been written in a way to highlight some of the practical issues confronting business people dealing with day-to-day cross-cultural management. We have tried to draw out a number of pragmatic lessons to make it easier for the business community to relate to a different cultural environment, as well as a number of theoretical concerns of interest to organizational scholars. Finally, we offer a number of tenta tive conclusions emphasizing that doing business is not only about economic exchange but also mutual learning.