Guanxi - The Chinese Connection

Building Guanxi (for business)...

You may ask, "How do I build Guanxi in China?" The simplest way that everybody can understand is to be true to your word. If you promise something, then do try to fulfill it. As a result, the Chinese people will look at you as more of a dependable and reliable figure (sometimes I think it is harder than it looks). Second, never leave a friend behind when he is in need.

Lastly, you should keep constant contact between one and another to build a friendly relationship. Also, everyone knows that everybody treats their friends better than any outsiders. To me, this is common sense and not just for the Chinese people.

But, then again, if you plan to do to build some Guanxi for your company, you should prepare some letters to your family because you are going to miss them for awhile.

The reason I said that is because Guanxi in China is a link from company to company, organization to organization, and not based solely on individuals. In addition, it should be created from generation to generation within an organization or a family. The relationship will carry on and look past the deal at hand. This is not how the West works.

Western companies mostly rely on individuals to connect to accomplish a common goal. Once the deal have been made, the majority of the time each person will hardly have a chance to work on it again. In turn Chinese people look at individual Guanxi (connection) as a fragile relationship.

Why not to create a Guanxi with Chinese officials?...

It is good that you want to create Guanxi with people that you are doing business with in China, however, one Guanxi that you should avoid putting a lot of energy into is a Guanxi with a government official.

Let look at a case scenario, shall we?

Many Western or foreign businessmen like to make connections with government officials. Now, that is a perfectly good idea. However, due to corruption the Chinese officials now are changing constantly. When you visit China this time it is this person, but next time when you come, there is no guarantee that you will see the same person in the same position. Just like that, you have lost your Guanxi.

So, Steven Dickinson, author of "Debunking the Guanxi Myth," advises foreigners to concentrate on your own business plan before coming to China rather than relying on Guanxi from Chinese officials. "Debunking the Guanxi Myth" is definitely a great article; you should read it when you have time (the link is right below this article).

Thank you for your time. Hope you are learning something new every time that you stop by. From where I am and wherever you are, good luck and good night everybody.

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