Guanxi importance business planning

Just as how the Western legal system is a reflection of the Western ethical perspectives, it can be said that the Eastern legal system functions similarly so. If the ties fail between two businesses within an overall network built through guanxi, the other ties comprising the overall network have a chance of failing as well.

On the other hand, you do not want to insult your business partner with something too cheap. Good friends can typically rely on one another when times are tough. There is a fine line between "guanxi" and bribery.

However, because very few Chinese drink foreign teas, I suggest giving Chinese tea. So, you could say that the concept of Guanxi boils down to the exchange of favors, which should be done both voluntarily and regularly.

Wrap the gift in red or place it in a red bag as this is a lucky color in China. China business consultants recommend that you bring gifts cigars, wine, etc. Guanxi is also based in concepts like loyalty, dedication, reciprocity, and trust, which help to develop non-familial interpersonal relations, while mirroring the concept of filial piety, which is used to ground familial relations.

Items from China are also appropriate, but you want to choose a well known and pricey brand. As China is creating its own terms for capitalism and legal business transactions the distinction many not become any clearer. Specifically, in a business context, guanxi occurs through individual interactions first before being applied on a corporate level ex.

Guanxi also refers to the benefits gained from social connections and usually extends from extended family, school friends, workmates and members of common clubs or organizations. 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.

Being able to understand the culture of giving gifts in China will help ensure a long healthy relationship with your Chinese business partners.

China Business Guide | Gifts for China Business Partners

These products are overly taxed and expensive in China. Apart from gifts, taking your Chinese business partners out to a large meal, a nice bar, and even places like karaoke are additional ways to improve your business relationship. Staying in contact with members of your network is not necessary to bind reciprocal obligations.

With companies like GiftbasketsOverseasyou can easily send gifts for any occasion from outside of China. Whether you are looking to build a business relationship, hoping to close a deal, or trying to repair a shaky relationship, check out these useful tips on sending gifts to Chinese business partners.

While guanxi can bring benefits to people directly within the guanxi network, it also has the potential to bring harm to individuals, societies and nations when misused or abused. In places in China where institutions, like the structuring of local governments and government policies, may make business interactions less efficient to facilitate, guanxi can serve as a way for businesses to circumvent such institutions by having their members cultivate their interpersonal ties.

Watches — No matter what culture you are from, having an additional watch to add to your collection is always a plus.

Make informed decisions with the FT.

Members within a business may also start to more frequently discuss information that all members knew prior, rather than try and discuss information only known by select guanxi importance business planning. Therefore it is best to avoid offering up a large sum of cash in a hongbao for your Chinese business partners unless you are giving a wedding gift.

Being able to understand the culture of giving gifts in China will help ensure a long healthy relationship with your Chinese business partners. Login to post comments.

Similar concepts in other cultures[ edit ] Sociologists have linked guanxi with the concept of social capital it has been described as a Gemeinschaft value structureand it has been exhaustively described in Western studies of Chinese economic and political behavior. Good "guanxi" can minimize natural or guanxi importance business planning obstacles in doing business in China.

In the business world, those with strong guanxi are well connected to the top leaders in business and government. The line drawn between ethical and unethical reciprocal obligation is unclear, but the nation currently is looking into understanding the structural problems inherent in the guanxi system.

In doing so, such countries can avoid financial fallout caused by a lack of awareness regarding the way practices like guanxi operate. Remember that these people can indirectly lead to new resources and acquaintances, thus helping propel your business in the right direction.

For this reason, giving large cartons of cigarettes from your home country is another good gift option. In simple terms "guanxi" appears to carry an element of trust. " Guanxi “Guanxi” literally means "relationships", 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. Hence, by identifying issues that are likely to affect the strategic importance of guanxi we can help both parent company managers and those engaged in Chinese business practice.

In addition to holding major legislative power, the Chinese government owns vital resources including land, banks, and major media networks and wields major influence over other stakeholders.

Thus, it is important to maintain good relations with the central government. Guanxi or Guanshi describes the basic dynamic in personalized networks of influence (which can be best described as the relationships individuals cultivate with other individuals) and is a central idea in Chinese society.

In Western media, the pinyin romanization of this Chinese word is becoming more widely used instead of the two common translations of it—"connections" and "relationships.

In business etiquette guides it's typically equated to the Western concept of networking, but guanxi is far more pervasive in China than networking is in Western countries. Guanxiand the realities of career development: a Chinese perspective Ji Li Hong Kong Baptist University, Hong Kong Philip C.

Wright Hong Kong Baptist University, Hong Kong Introduction The importance of developing guanxi in order to conduct business in China (and elsewhere in Asia) has been well documented Guanxi and the realities of career.

Guanxi importance business planning
Rated 4/5 based on 38 review
Doing business in China - Understanding Guanxi is a must