This essay explores the intricate relationship between perception and performance of intercultural communication in interaction involving USA and China participants. It identifies its key concepts, how these concepts lead to a positive or negative interpretation of intercultural events and critically addresses issues related to perception, stereotypes, prejudice and ethnocentrism. The increased movement of different worldwide populaces in the twenty-first century has become more complex than we may have imagined even five years ago. Study demonstrates that ‘developments in transportation and communication technology have been rapidly evacuating geographical boundaries’ and that people also move across cultural boundaries. As migrant populations seek employment, investment opportunities and new geographical spaces to enjoy better security and peaceful coexistence, the goal of building a global community that can work in harmony will remain a very significant phase of our lives this century. As global communities come together to live, to learn and to work in all regions of the world where they become active participants in public life, building global community values will remain a challenging task. Global community refers to people of national and international origin who form a community within and outside of a physical space and who subscribe to a diverse range of norms and values that inform their visions and perspectives about the world around them. The notion of building a global community refers to a willingness by individuals and groups to integrate acceptable cultural norms and values in a meaningful and respectful way into their everyday lives. Intercultural communication is a complex concept that has taken on a wide variety of meanings and interpretations. According to Klyukanov (2005, p. 45), intercultural communication is a ‘process that is inherently variable and subject to interpretation’. While communicating with people from other cultures, we fail to recognize various factors that affect our communication. One of the most predominant factor in nearly all intercultural communication experiences is the human one: people and the beliefs and values of their own cultures. Language, lifestyle, mass media, personal and professional environments are only few of the many factors that affect intercultural communication in some way. Whereas, factors such as stereotyping, prejudice, ethnocentrism and perception also have a massive impact on communication. A point to be considered is that all cultures have features that are both similar and different and because of this fact intercultural communication events can be altered positively or negatively at any given time.