There have been a bunch of discussions and several web sites (LinkedIn, etc) about the importance of guanxi in China. ?All of a sudden there appears to be a big divide in the knowledgeable mass of people out there (yes, really, there are a lot of people now with real and valid experience from doing business in China) ? is GuanXi an relic or a valid aspect of living, working, doing business, in China.
So of course, after entering my opinion on several of the site, I had to post something here for the audience of this site.
Guanxi is well and still very important in China. Yes, all of us (in business) talk about the various aspects of our products and operations, we judge business cases by their merits but at the same time for those operating in China, guanxi remains a critical factor to consider, develop and leverage (using leverage in a positive context). In a way Guanxi is developing to become a factor similar to / like trust and credibility in the West?i.e. it is evolving and thus still very relevant.
You can develop a supplier ? customer relationship with business partners in China, but the ones you develop on a personal and deep level are the ones that will help you for a long time and also help you across industry and across projects. ? So, yes, you need to focus on building those relationships and a business network. ?In a way GuanXi is similar (NOT THE SAME) to Networking in the US. ?Except it is on a much more personal level. ? Therefore in order to get to the meaningful stage you really need to delve into Chinese culture, you need to learn about the country, its language, customs, and then you can think about how to elevate that in your personal relationships in your business dealings.
More on this in a future article?.
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