I am always reminded how guanxi has served a purpose and has often worked so successfully in my life and others around me, for example: How my uncle helped his friend’s son find a job; how my father got me into one of the most prestigious elementary schools and how my classmate got accepted into her dream university.
Surprisingly, different problems are all solved by the guanxi relationship – a connection between two independent individuals to enable a bilateral flow of personal or social transactions. Unlike in western culture where networked relationships mainly serve the purpose of self-interest, and agreements are governed in general by the rule of law, returning the favor in Chinese culture is a moral obligation and not reciprocating is seen as shameful.
In chapter 6, it’s said that guanxi relies less on institutional law, and more on personal power and authority. Therefore, someone abuses power and breaks the law either to help others or return others’ help, leading to corruption and legal penalty. The phenomenon is even serious in politics these years. In the tiresome game of developing and maintaining guanxi, people even get involved in excessive drinking and occasional visits to prostitutes.
However, maintaining a healthy guanxi make everyday life more convenient because in a country with huge population, resources are limited to people. Guanxi network creates harmony in society as well, especially in business. People constantly and persistently spend time, efforts and money to develop and maintain guanxi with authoritarians to operate smoothly, gain personal benefits or close deals. Sometimes who one knows is more important than what one knows.
In a word, guanxi is a rule of men rather than rule of law. It brings benefits to people directly and plays a pivotal role in business success in China. For western companies wanting to successfully do business in China, the need to have a firm understanding of guanxi and the cultural differences as well as the need to build relationships is vital.
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Source:
Y. M. Yeung and R. L. Tung, “Achieving Business Success in Confucian Societies: The Importance of Guanxi (Connections),” Organizational Dynamics, Special Report, 1998, p. 73.
Zhang, Lijia. “Author: In China, ‘everyone is guilty of corruption'” CNN. N.p., n.d. Web. <http://www.cnn.com/2013/10/23/opinion/china-corrution-lijia-zhang/>.
“Guanxi.” Wikipedia. N.p., n.d. Web. <https://en.wikipedia.org/wiki/Guanxi>.
