What is guanxi?

Relationships are everything in Đài Loan Trung Quốc. While you are building & nurturing your business relationships, you may be asked to lớn share stories & information of a surprisingly personal nature. Don’t be concerned when a Chinese person you are meeting for the first time asks, for example, "how much money bởi vì you make?", "what is your partner’s Eastern astrology symbol?" or "what are your religious beliefs" – it is all about building a relationship, an essential part of doing business in China.

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The Chinese Điện thoại tư vấn this guanxi (关系). Guanxi refers to having personal trust và a svào relationship with someone, and can involve sầu moral obligations and exchanging favours. Sometimes incorrectly perceived in Western business as bordering on unethical behaviour associated with corruption (i.e. awarding projects khổng lồ a friend’s rather than the most qualified firm), it is a core part of doing business in Trung Quốc.

“We open our Suzhou doors whenever an Australian official visits, which helps demonstrate khổng lồ Chinese government officials that we are well connected & respected at home. The guanxi we display from nước Australia is often as important as our local guanxi.” – Peter Michell, Executive sầu Director, Michell Wool

Guanxi is often translated as “connections”, “relationships” or “networks”. However, none of these terms bởi vì justice khổng lồ the fundamental and mni-alive.complex concept of guanxi và its central role in Chinese culture. Guanxi can also be used lớn describe a network of contacts, which an individual can hotline upon when something needs to be done, và through which they can exert influence on behalf of another. These networks can have a direct impact on conducting business in Trung Quốc, including market expansion và sales growth. Maintaining open 'bureaucratic relationships' can also help businesses set up with minimum delays. But it can also bring challenges. Australian businesses might understandably struggle lớn integrate guanxi into lớn their business practices. The key is khổng lồ remain diligent và be aware that the reciprocal nature of guanxi also dictates an informal obligation to 'return the favour'.

How lớn build guanxi

Building guanxi involves a long-term approach. It can be done in several ways:

General knowledge of China- Relationships can be aided & built by some general knowledge of Đài Loan Trung Quốc & its culture. This can assist to establish an immediate connection khổng lồ a new Chinese tương tác.

Formal introduction- Because Chinese people prefer to bởi vì business with people they have sầu a personal connection with, it can help if you are introduced khổng lồ a prospective sầu business associate through an intermediary. The higher the social status that your connection has, the more successful you are likely khổng lồ be at being introduced to the right people và key decision-makers.

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Conscious effort- Relationships in Trung Quốc are more trust-oriented & personal than relationships elsewhere, therefore a conscious và continued effort is required lớn develop and maintain them. It will require frequent visits, almost daily mni-alive.communication (preferably CEO/ director khổng lồ CEO) và plenty of socialising.

Gifts- Giving gifts is an important aspect of doing business & building relationships in China. Australians should provide at least some overly ‘Australian’ gifts, such as toy koalas. Gifts that have your emblem will also be well received.

Dining và entertainment -Once you have established relationships in China, you are likely to be invited to lớn dinners and other forms of entertainment including golf, nightclubbing or karaoke. If you are invited for dinner at a business contact’s house (which is generally a reserved honour) – arrive sầu on time, remove sầu shoes before entering và take a gift. Dining is mni-alive.commonly used to gently probe positions without any formal mni-alive.commitment.

“The Chinese business Model tends to lớn be less contractual và more based on trust and the guanxi so there can be a sense of frustration. It’s slower lớn build relationships, but having said that, once trust has been established the Chinese partners & entities normally want khổng lồ move sầu very quickly,” John Russell, Director, North Head

Want to learn more? Explore our other China information categories or download the Trung Quốc Country Starter Pachồng.

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