ROSA

Chinese Business Relationship Culture
In Chinese relationship is the most important things they called it “Guanxi” it means The Strength of Relationship
What is Guanxi?
Guanxi is a personal connection between two people in which one is able to prevail upon another to perform a favour or service. It is a network of contacts, which an individual can call upon when something needs to be done and through which he or she can exert influence on behalf of another.
Concept of Guanxi
Extended Family :
 Most trusted
 Well and closely guarded
 Lifelong relationship
As such Chinese prefer to do business with those who they know and trust
Personal power and relationship or connections rather than rule of law are important in China. Reciprocal relationship networks can often mean doing favors or offering gifts. If the relationships is good then they do the business transaction.
Key Element of Guanxi
 Xinyong : Trustworthiness, integrity, credibility, reputation, character
(Matches with Uncertainty Avoidance in Hofstede’s Five Cultural Dimensions)
 Mianzi : prestige face, respect, save face, loss of face
(Matches with Power Distance in Hofstede’s Five Cultural Dimensions)
 Renqing : human sentiment, favour
(Matches with Individualism / Collectivism in Hofstede’s Five Cultural Dimensions)
 Bao : reciprocity, to guard, to insure, to protect, treat as precious
(Matches with Individualism / Collectivism in Hofstede’s Five Cultural Dimensions)
 Keqi : humility & modesty
(Matches with Masculinity / Femininity in Hofstede’s Five Cultural Dimensions)
A problem for Western companies in general is that they lack understanding of the implications of guanxi and how to run a company in a Chinese context. In Western countries, business relationships are viewed functionally and evaluated by both sides on a benefit basis. Managers from China base their relationship on moral and social norms of guanxi as a part of the Chinese culture, and relationships are highly