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The Chinese outbound tourism market has become one of the acknowledged emerging markets in Australia. This paper reviews the development of the Chinese outbound tourism market to Australia, with particular reference to issues emerging from the interaction between Chinese and Australian-based businesses. The paper begins with an overview of Chinese inbound tourism to Australia to provide some context to the discussion. This is followed by an examination of cultural factors, particularly guanri, in business transactions in the Australian-Chinese tourism sector. A theoretical model is introduced to conceptualize the strategies managing the Chinese business relationships. This is an ongoing research project; this paper reports Stage One of the research which has been conducted to explore the crucial factors which influence establishing, developing and maintaining the relationships between Chinese authorized travel agencies and Australian inbound tour operators. [ABSTRACT FROM AUTHOR]