Guanxi
Sometimes you will hear us talk about guanxi as we conduct our field study. Our group might be overweight a small amount on our luggage limit for in China air travel. Technically, we would have to pay extra but because our luggage courier has good guanxi with the luggage handler at the airport, it is overlooked. To express some measure of our appreciation, I will make sure our luggage courier has a good tip.
Gift giving is also a part of guanxi. I will go over gifting in a later post. Chinese officials may walk with us to the bus. Our delegation leadership will give them a final farewell before boarding the bus. As the bus leaves we will wave to them and they will wave back. So, if you see me doing some things not normally done in the United States, it is probably related to guanxi. Guanxi is probably the most important concept in how we relate to our friends in China. The people we meet in Beijing and Shandong Province are all a part of the guanxi process. Because you are a member of the Connecticut delegation, you automatically become involved in guanxi.
Defining guanxi it is not easy. In fact, it probably can't really be translated. Relationship, connection and networking are concepts we are familiar with used to explain guanxi. These terms are really not adequate to explain guanxi. Feeling is also involved in guanxi. Guanxi is where our cultures connect and collide at the same time. For us to relate to Chinese culture both sides have to meet somewhere in the middle. Guanxi is often at the center of international trade issues between the United States and China. Without some measure of guanxi our group cannot access China at the level we are operating. One begins to understand guanxi through experience. You will begin to know it when you begin to "practice and feel it." Below is an explanation of business guanxi I have taken off the internet. I have also included "definitions" for guanxi and other related terms.
Understanding the Chinese Business Networking Concept: "Guanxi"In order to make your products presence in China last, and ensure your business expansion successful in the long run, you must understand one of the most important elements of running your business operations in China - the concept of “guanxi”. Understand this is more important than all the work researching, establishing foreign offices, and making initial contacts with freight forwarders. Even after completing your first successful move into this vast market of opportunity, you will find all your efforts pointless and fail terribly in China without this practice. Technically, “Guanxi” stands for any type of relationship. In the Chinese business world, however, it is also understood as the network of relationships among various parties that cooperate together and support one another. The Chinese businessmen mentality is very much one of "You scratch my back, I’ll scratch yours." In essence, this boils down to exchanging favors, which are expected to be done regularly and voluntarily. No matter how much experience you have in American business management, the right “Guanxi” in China will make all the difference in ensuring success.
The inevitable risks, barriers, and set-ups you’ll encounter in China will be minimized when you have the right “Guanxi” network working for you. It takes time and experience in order to be able to observe and identify who will be most beneficial to you. Developing and nurturing “Guanxi” requires time and resources. Your immediate Chinese network can indirectly link you to new acquaintances and information resources. The Chinese and Western cultures conduct business differently, even if, on the surface, transactions seem to be the same. The Chinese prefer to work with people they know and trust, so are less inclined to simply close a deal. With a strong relationship, however, you can be trusted and even favored. This relationship extends between companies and also between individuals at a personal level on an ongoing basis.
"Guanxi" can take on many forms. It does not have to be based on money. It is completely legal in their culture and not regarded as bribery in any way. So, there is no need to feel uncomfortable about it. Trustworthiness of both the company and individual is an important component. Following through on promises is a good indication of this. Treating someone with courtesy while others treat him or her unfairly is another aspect. Frequent contact fosters friendship as well. Chinese feel obligated to do business with their friends first. There are risks with this system, as well. When something goes wrong, the relationships are challenged, and friendships quickly disappear.
Establishing “Guanxi” with high rank officials is also helpful. Although Chinese companies are increasing having to survive without government subsidiaries, many foreign companies still need strong relations with government officials. For example, the process of obtaining a new license to market your products in a new region of China is greatly accelerated and much less expensive with the right connections. The time and money necessary to establish a strong network is well worth the investment. What your business could get in return from the favors for your partners are often more much more valuable, especially in the long run, and when you’re in need. Even domestic businesses in China establish wide networks with their suppliers, retailers, banks, and local government officials. It is very common for individuals of an organization to visit the residence of their acquaintances from other organizations, bringing gifts (such as wine, cigarettes, etc.). While this practice may seem intrusive, as you spend more time learning the Chinese culture, it will become easier to understand and take part in this practice that is so central to successful Chinese commercial activity.
"Gănqíng" (感情) is an important concept in Chinese social relations which is loosely translated as "feeling" and is related to the concept of guanxi. Gănqíng reflects the tenor of a social relationship between two people or two organizations. One can speak of having good gănqíng meaning that two people have a good rapport or deep ganqing meaning that there is considerable feeling within a social relationship. The term 'gănqíng' is often seen in Chinese government comments, and is often mistranslated when used in this context. Often one will see a statement that an action "hurts the feelings of the Chinese people." This statement is better translated as an action "disturbs the relationship with the Chinese people." When used in this context the statement is actually mildly threatening implying that should the action continue, that cooperation would not be forthcoming in the future. Retrieved from "http://en.wikipedia.org/wiki/Ganqíng"
Gūanxì (关系 or 關係), literally translated as "relationship", has been a central concept in Chinese society and describes a personal connection between two people in which one is able to prevail upon another to perform a favor or service. The two people need not be of equal social status. The term is generally not used to describe relationships within a family, and is also generally not used to describe relationships which are defined by bureaucratic norms (i.e. a boss and an office worker or a teacher and a student). The relationships formed by guanxi are personal and not transferable. It has been extensively studied and described in studies of Chinese economic and political behavior, and sociologists have linked it with the concept of social capital. When a guanxi network violates bureaucratic norms, it can lead to corruption. Guanxi can also form the basis of patron-client relations. A closely related concept is that of ganqing or feeling which reflects the depth of feeling within an interpersonal relationship. See also: Chinese social relations
Face refers to two separate but related concepts in Chinese social relations. One is mianzi (面子 in pinyin: mian4 zi0). The other is lianzi (臉子 lian3 zi0). Lian is the confidence of society in a person's moral character, while mianzi represents social perceptions of a person's prestige. For a person to maintain face is important with Chinese social relations because face translates into power and influence. A loss of lian would result in a loss of trust within a social network, while a loss of mianzi would likely result in a loss of authority. To illustrate the difference, gossiping about someone stealing from a cash register would cause a loss of lian but not mianzi. Repeatingly interrupting one's boss as he is trying to speak may cause a loss of mianzi but not lian. When trying to avoid conflict, Chinese in general will avoid causing another person to lose mianzi by bringing up embarrassing facts in public. Conversely, when challenging authority and another person's standing within a community, Chinese will often attempt to cause a loss of lian or mianzi. A very public example of this occurred during the Tiananmen protests of 1989 when Wu'er Kaixi scolded Premier Li Peng for being late to a meeting with the demonstrators. See guanxi and ganqing. Retrieved from "http://en.wikipedia.org/wiki/Face_(social_custom)"
Gift giving is also a part of guanxi. I will go over gifting in a later post. Chinese officials may walk with us to the bus. Our delegation leadership will give them a final farewell before boarding the bus. As the bus leaves we will wave to them and they will wave back. So, if you see me doing some things not normally done in the United States, it is probably related to guanxi. Guanxi is probably the most important concept in how we relate to our friends in China. The people we meet in Beijing and Shandong Province are all a part of the guanxi process. Because you are a member of the Connecticut delegation, you automatically become involved in guanxi.
Defining guanxi it is not easy. In fact, it probably can't really be translated. Relationship, connection and networking are concepts we are familiar with used to explain guanxi. These terms are really not adequate to explain guanxi. Feeling is also involved in guanxi. Guanxi is where our cultures connect and collide at the same time. For us to relate to Chinese culture both sides have to meet somewhere in the middle. Guanxi is often at the center of international trade issues between the United States and China. Without some measure of guanxi our group cannot access China at the level we are operating. One begins to understand guanxi through experience. You will begin to know it when you begin to "practice and feel it." Below is an explanation of business guanxi I have taken off the internet. I have also included "definitions" for guanxi and other related terms.
Understanding the Chinese Business Networking Concept: "Guanxi"In order to make your products presence in China last, and ensure your business expansion successful in the long run, you must understand one of the most important elements of running your business operations in China - the concept of “guanxi”. Understand this is more important than all the work researching, establishing foreign offices, and making initial contacts with freight forwarders. Even after completing your first successful move into this vast market of opportunity, you will find all your efforts pointless and fail terribly in China without this practice. Technically, “Guanxi” stands for any type of relationship. In the Chinese business world, however, it is also understood as the network of relationships among various parties that cooperate together and support one another. The Chinese businessmen mentality is very much one of "You scratch my back, I’ll scratch yours." In essence, this boils down to exchanging favors, which are expected to be done regularly and voluntarily. No matter how much experience you have in American business management, the right “Guanxi” in China will make all the difference in ensuring success.
The inevitable risks, barriers, and set-ups you’ll encounter in China will be minimized when you have the right “Guanxi” network working for you. It takes time and experience in order to be able to observe and identify who will be most beneficial to you. Developing and nurturing “Guanxi” requires time and resources. Your immediate Chinese network can indirectly link you to new acquaintances and information resources. The Chinese and Western cultures conduct business differently, even if, on the surface, transactions seem to be the same. The Chinese prefer to work with people they know and trust, so are less inclined to simply close a deal. With a strong relationship, however, you can be trusted and even favored. This relationship extends between companies and also between individuals at a personal level on an ongoing basis.
"Guanxi" can take on many forms. It does not have to be based on money. It is completely legal in their culture and not regarded as bribery in any way. So, there is no need to feel uncomfortable about it. Trustworthiness of both the company and individual is an important component. Following through on promises is a good indication of this. Treating someone with courtesy while others treat him or her unfairly is another aspect. Frequent contact fosters friendship as well. Chinese feel obligated to do business with their friends first. There are risks with this system, as well. When something goes wrong, the relationships are challenged, and friendships quickly disappear.
Establishing “Guanxi” with high rank officials is also helpful. Although Chinese companies are increasing having to survive without government subsidiaries, many foreign companies still need strong relations with government officials. For example, the process of obtaining a new license to market your products in a new region of China is greatly accelerated and much less expensive with the right connections. The time and money necessary to establish a strong network is well worth the investment. What your business could get in return from the favors for your partners are often more much more valuable, especially in the long run, and when you’re in need. Even domestic businesses in China establish wide networks with their suppliers, retailers, banks, and local government officials. It is very common for individuals of an organization to visit the residence of their acquaintances from other organizations, bringing gifts (such as wine, cigarettes, etc.). While this practice may seem intrusive, as you spend more time learning the Chinese culture, it will become easier to understand and take part in this practice that is so central to successful Chinese commercial activity.
"Gănqíng" (感情) is an important concept in Chinese social relations which is loosely translated as "feeling" and is related to the concept of guanxi. Gănqíng reflects the tenor of a social relationship between two people or two organizations. One can speak of having good gănqíng meaning that two people have a good rapport or deep ganqing meaning that there is considerable feeling within a social relationship. The term 'gănqíng' is often seen in Chinese government comments, and is often mistranslated when used in this context. Often one will see a statement that an action "hurts the feelings of the Chinese people." This statement is better translated as an action "disturbs the relationship with the Chinese people." When used in this context the statement is actually mildly threatening implying that should the action continue, that cooperation would not be forthcoming in the future. Retrieved from "http://en.wikipedia.org/wiki/Ganqíng"
Gūanxì (关系 or 關係), literally translated as "relationship", has been a central concept in Chinese society and describes a personal connection between two people in which one is able to prevail upon another to perform a favor or service. The two people need not be of equal social status. The term is generally not used to describe relationships within a family, and is also generally not used to describe relationships which are defined by bureaucratic norms (i.e. a boss and an office worker or a teacher and a student). The relationships formed by guanxi are personal and not transferable. It has been extensively studied and described in studies of Chinese economic and political behavior, and sociologists have linked it with the concept of social capital. When a guanxi network violates bureaucratic norms, it can lead to corruption. Guanxi can also form the basis of patron-client relations. A closely related concept is that of ganqing or feeling which reflects the depth of feeling within an interpersonal relationship. See also: Chinese social relations
Face refers to two separate but related concepts in Chinese social relations. One is mianzi (面子 in pinyin: mian4 zi0). The other is lianzi (臉子 lian3 zi0). Lian is the confidence of society in a person's moral character, while mianzi represents social perceptions of a person's prestige. For a person to maintain face is important with Chinese social relations because face translates into power and influence. A loss of lian would result in a loss of trust within a social network, while a loss of mianzi would likely result in a loss of authority. To illustrate the difference, gossiping about someone stealing from a cash register would cause a loss of lian but not mianzi. Repeatingly interrupting one's boss as he is trying to speak may cause a loss of mianzi but not lian. When trying to avoid conflict, Chinese in general will avoid causing another person to lose mianzi by bringing up embarrassing facts in public. Conversely, when challenging authority and another person's standing within a community, Chinese will often attempt to cause a loss of lian or mianzi. A very public example of this occurred during the Tiananmen protests of 1989 when Wu'er Kaixi scolded Premier Li Peng for being late to a meeting with the demonstrators. See guanxi and ganqing. Retrieved from "http://en.wikipedia.org/wiki/Face_(social_custom)"
posted by Daniel at
9:33 AM
