My experience with contracts in Taiwan and China is that most smaller companies want to avoid them at all costs as they're too troublesome. If they've just met you they'd rather take you to a KTV, have some drinks and talk bullshit, meet your family, etc. And build a personal relationship in order to build mutual trust.
In my last visit to China I got tangled up into a business deal with 5 parties. The Japanese customer, a Chinese manufacturer, a product designer, a industrial designer that I've found in Norway and myself. Now, the 3 first of these parties have done business with each other for more than 8 years, so they fully trust each other and because of this... believe that they need no contracts. They have everything transparent between them so they all know what the others are earning on projects they do together. I've known the product designer in that group for over 10 years, so when he stands up for me, I'm in the 'circle of trust' and also need no contracts when dealing with these people.
But when I brought in these Norwegian designers, whom I've never met before I brought them to China, everyone was cautious, as the weakest link was between myself and those designers. So we solved that by making a contract just between myself and those designers, while the rest of the business partnership is built on trust alone. We still went to KTV every bloody day in China though... to build trust.