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What is guanxi?

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The word guanxi has no precise English equivalent.It is literally translated as“relationship”or”connection,”and technically,it 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.The Chinese business mentality is very much“You scratch my back,I’11 scratch yours.”

Developing and nurturing guanxi requires time and resources.Chinese and Western cultures conduct business differently,even if,on the surface,transactions seem the same.Chinese prefer to work with persons they know and trust.This relationship extends between companies and also between individuals at an ongoing personal level.

With manners,diligence,courtesy and goodwill,one constructs his or her own web of supporting relationships.

Guanxi can take on many forms.It does not have to be based on money.It iscompletely legal in their culture and not regarded as bribery in any way.

Trustworthiness of both a company as a whole and individual is an important component,and following through on business promises is an essential indication.

Why does face have a great importance for Chinese?

Sociologists know that the concept of face is a universal concern of human beings,but it has particular social significance for Chinese.There is a Chinese proverb that says,”A person needs face as a tree needs bark.”There are several reasons.Over the centuries,many people in China have seldom moved away from thelocation of their birth.They spend their entire life in the company of the same

friends,neighbors and relatives.Face-saving behaviors are necessary to maintain harmony,avoid conflicts and protect the integrity of the group.

Confucius emphasized that human beings exist in interactive relationships with others.According to his thought,a senior party is assumed to have authority with respect to his or her juniors;the junior party,in turn,was bound to be respectful and obedient toward his or her seniors.These obligations are expressed in the Chinese virtue known as li,which means“right conduct in maintaining one’s place in the hierarchical order”and is currently used by the average Chinese to mean manners.One important way to be acceptable is to respect and accept each person’s need to maintain his or her face.Loss of face is not a matter of personal embarrassment;it also threatens to disrupt the integrity of the group and destroy long-established relationships.

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