China opened up their markets to the rest of the world 30 years ago. Since then country has gone through a major transformation. International corporations are now exploring this opportunity by establishing businesses all over the country. Supply chain management and purchasing are two fields where international firms are experiencing the most difficulties. Another issue is the effect cultural differences have on these companies' ability to perform.This study investigates the cultural differences observed at ATR, a joint venture between Åkers Rolls and TISCO. Interviews and observations were conducted at the company in China, followed by an extensive literature study. The purpose was to find problems purchasing organizations may encounter in China, to identify the causes, and finally to come up with ways to prevent and to deal with these issues.The identified difficulties could all be related to the national culture, organizations, the employees, and the purchasing operations. Culture differences affect each one of these topics. The findings suggest that international firms today often overlook cultural dimensions and the impact they have on business conduct in China. Arrogance by the foreign firms often leads to failures in exploiting possibilities offered by the Chinese market.