How to Communicate with Chinese People in China

Visiting China? Speak Chinese? (!) This advice is written for English users who are assumed to have a different, probably "Western" culture, and who are unfamiliar with communicating in China.
Hopefully this will be a useful introductory guide informing you what to expect from communication in China, and perhaps what tensions and misunderstandings may arise, how to prepare in advance, and how to act accordingly and effectively.
Do Many People Speak English in China?
Despite a nationwide English program of some years standing, the levels of spoken English in China are still widely variable and this will often depend on where you are, obviously with more English spoken in larger, more cosmopolitan cities.
Having said this, even in a major tourist city such as Guilin or Guangzhou for example, there's no guarantee you'll encounter another English speaker during the course of a day outside of your hotel reception or tour operators' staff!
(It's worth noting that many Chinese who can speak a little basic English are often very shy of doing so for fear of making a mistake and appearing stupid.)
Is There English Signage/Information in China?
Chinese products often have funny English.
In large cities and tourist areas there has been a movement to put road names etc. in letters as well as Chinese characters. This, while helpful, is by no means everywhere, and most written information in China is just in Chinese characters.
Poor (sometimes unfathomable) English and spelling mistakes on signs, clothes, food packaging, adverts, in fact, everywhere, are a common source of amusement, confusion, and criticism for the non-Chinese in China.
Generally, absolute correctness is not taken too seriously as far as English goes. The English letters are seen by many as decoration and more of a token effort at being international than any genuine form of communication.
This can be frustrating when reading restaurant menus sometimes, but before you judge this attitude as ignorant and careless, consider how Chinese characters have been (mis)used in the West.
"Hello China" - Your First Communication Problems
If you are a first-time visitor to China the primary advice is to practice tolerance and patience - you are, after all, a visitor to a foreign culture and should carry a corresponding respect with you in China!
"Street" Chinese can be brusque, blunt and (seemingly) rude to the point of aggressive. It's not! They're not! Really. Read on to understand…
Chinese Communication - Culture Shock!
The Chinese communicate very directly and abruptly in most day-to-day terms, and it's not uncommon to hear and see Chinese people apparently at the point of coming to blows - so vociferous can be the nature of their exchanges! Don't worry or be alarmed, this is perfectly normal!
The Chinese themselves are pretty tolerant of each other. They don't take things too personally, and are not easily offended. Having a thick skin is an advantage when you live among 1.3 billion people!
Many Chinese people live their lives in overcrowded and hectic proximity with a relatively low level of stress. Tolerance, one of the great virtues of the Chinese, is precisely why this is possible
Remembering and employing this "thick-skin-tolerance" thing will be an advantage for you in China, the greater percentage of which people speak very little or no English! To quote a western phrase let it all be "water off a duck's back"!
Why do Chinese speak so LOUDLY?
Rural or working class Chinese may talk (shout) like they're calling up a mountain or across a construction site for everyday conversation. It's mainly force of habit, ironically from having to communicate over dozens of other similar voices most of the time!
As more of China's population are becoming urbanized and au fait with more facets of urban culture the noise problem is lessening. But the Chinese still like a noisy atmosphere in more settings than in the West.
Chinese interaction can appear chaotic, but Chinese seem not to mind a greater level of noise and fewer restrictions in the flow of communication (take in the scene in any well-frequented restaurant for example).
When in China - Do as the Chinese Do!
There are simple ways to make your time in China easier and more fruitful, and communication is a key!
Don't view China as a backward culture - different than yours most probably - but there are certainly many refined people, and cultural and technological aspects of life in China that are to be envied and adopted!
Foreigners are usually viewed with curiosity. There's always warm welcome and a smile - when in China, do as the Chinese do! Patience, tolerance, a ready smile, and a good sense of humor go a long way to making life less stressful and more enjoyable.
Being an obvious foreigner (Caucasian in particular) on the streets of China can test your patience, mainly because you'll be quite unused to the cultural differences.
Hello! Or Hello?
There will be instances when some Chinese, being generally affable in nature, cannot resist the urge to try to communicate with a non-Chinese. Unfortunately, their attempts can often come across as ill-timed and ever-so-slightly cheeky.
You will hear shouts of "hello" (English version) which are usually simply a friendly gesture, and in some cases have no purpose other than to try out the single word of familiar English the speaker has, and to elicit some reaction from a foreigner. These "hello"s, (often uttered in a quizzical tone), can come from behind, or in passing.
Sometimes the shouts of "hello" are from someone who wants to sell something or someone who wants to warn of a danger or let you know you've dropped something, and this is the only way they know to get the "foreigner's" attention.
The 'Foreigner' Label
The Chinese "waiguoren" (/why-gwor-rnn/), meaning 'foreigner', or laowai (/laow-why/), literally 'old foreigner', apparently have no particularly negative connotations in China.
Though the word "foreigner" is used by prejudiced people i