Got My Guanxi Working

Yesterday at work, we had a Q&A discussion on Chinese culture. Anyone who's even dipped their little toe in the business or governmental waters there knows that when it comes to getting anything done in China, it's all about the relationships (or guanxi). Guanxi is informally recognized as the third currency of the country, the first being RMB and the second the US dollar.

The importance of building relationships in China (and the reasons many US businesses struggle there) was vividly explained. According to a native-born Chinese businessman--who had studied and lived in the US for years before returning to China to manage several successful enterprises--the biggest difference between the US and China when it comes to business is the relative weight given to various considerations when deciding whether to undertake an action.

In the US, the individual would consider them in this order:

- Law: Is it legal?

- Reason: Does it make sense?

- Friendship: Will it help my friend?

If the answer to either of the first two is no, the individual in the US would likely decline to act.

In China, the order is this:

- Friendship

- Reason

- Law

It doesn't necessarily have to be legal or make sense from a business perspective if it helps my friend. That's how much importance is placed on relationships.

If you don't have your guanxi working in China, you're going to have a hard time getting anything done.