Author: Thomas Perez
China has a history of around 4,000 years with many different dynasties. The last one, the Qing, ended in 1911, the birth year of PRC. Exactly 100 years later, in 2011, China became the world’s factory and released its 12th Five-Year Plan. Almost every aspect of the economy will change except of one – guanxi.
“All business is personal”! The right network makes the difference between wealth and poverty, success and failure. There are two different levels of relationships in the Chinese culture. The first level is called “one of us”. This is a group formed around a big Chinese family, which includes relatives and friends. This netting of relationships is known as guanxi. The second level is called “strangers”. These are foreigners coming to China for various reasons.
Is it possible to move from “stranger” to “one of us”? Personally, I think yes. It certainly needs time to build up mutual trust, but a foreigner can gain access to the network by being introduced to the core of the guanxi and by offering favors or connections beneficial for the involved parties. It is a constant give and take, but after having experienced the magic of guanxi, it is very hard to imagine a life without it, because there is no better insurance for loyalty, respect and support.
What is your experience building guanxi?
I agree that the way we do business has changed over the years, it is much faster and globally oriented. However, the interpersonal relationship has still very much prevailed, so as to ensure a sustainable liaison between the parties involved. Social Media is a very good example to understand how “word-of-mouth” has taken the next big step to build relationship. That’s why it is more important than ever to have corporate ambassadors, who have the passion and determination to correctly represent their companies when doing business locally or globally.
I understand Guanxi within the Chinese community as a system of relationships with historical and cultural background. These relationships range from family to commercial based and signifies personal connections. Every Chinese participates in this system. For us foreigners it is very complex to understand the Guanxi system. So I think foreigners are not fully able to play the Guanxi game. BUT the practice of Guanxi should be acknowledged and accepted. The understanding of its nature and the expectations in that context is the key to change the relationship.