Business Culture in China – "Guanxi"

With the intention of keeping our active blog, We will be adding new entries about China, that we believe may be of general interest.

In this way, we echo an article by Antonio Hernando Mesa, which explains the meaning of “Guanxi” and its importance for business in the Asian giant.

Guanxi (Relationship) is the Chinese word that defines mutually beneficial relationship, critical for success in the “Central United”, literal translation of China, call “Zhong guo” (China). In China there is something like “pure business relationship”, in return, to be successful must establish formal relationships with people. The term “Guanxi” refers to the delicate art of building and nurturing these personal ties.

Chinese idiosyncrasy is still rooted in traditional and ancient Confucian values, including, respect, the moral and personal commitment to the family and their ancestors, care of appearances and the importance of the network of personal relationships, inter alia. Thus the “Guanxi” It is based in turn on four different principles that are:

  • Trust (respect and understanding of others)
  • Favouring (loyalty and obligation)
  • Dependence (harmony, reciprocity and mutual benefit)
  • Adaptability (patience and attention)

The “Guanxi” between relatives by blood ties, among classmates or work experiences shared, between partners in business acquaintances assists made by. While Americans attach great importance to relations between institutions and the information they generate (networking), Chinese give the same importance to relations with people and capital from his friends, family and close associates.

Although the role of “Guanxi” It goes against the modern theory of business management and process “westernization” of some Chinese management practices, still has an important social force, so much so that the person with the best “Guanxi”, desire.

In conclusion, we could define the “Guanxi” with the following popular Chinese proverb:

“When I make things difficult, I make them difficult for me too. When I make things easy for you, I make them easy for me too”

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