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China and Guanxi

In: Contemporary Strategic Chinese American Business Negotiations and Market Entry

Author

Listed:
  • Steve Clarke

    (School of Business and Management)

  • Saiful Alam Saiket

    (The Hong Kong Polytechnic University)

Abstract

Literally, Guanxi means connection and is made up by two words: guan and xi An artistic image of Chinese people. The term Guanxi is an indigenous concept and Chinese literally means relations or special personal relationships Within China, Guanxi suggests that when one ignores personal relationships or reciprocity, it is immoral. Guanxi is a vital concept to comprehend if one is to function successfully in Chinese society and business. Chinese culture is unlike other cultures and their variances bring wide-ranging outcomes or perceptions and interpretation of Guanxi in practice. The status of trust building that are principal for personal bonding within relationships results in indirect benefits in bond building as well as direct networking are emphasized. Finally, Guanxi empowers and solidifies the business relations while enhancing the negotiation skills as a way forward in mutual organizational performance.

Suggested Citation

  • Steve Clarke & Saiful Alam Saiket, 2023. "China and Guanxi," Springer Books, in: Steven J. Clarke (ed.), Contemporary Strategic Chinese American Business Negotiations and Market Entry, pages 301-310, Springer.
    • Handle: RePEc:spr:sprchp:978-981-19-6986-7_8
    DOI: 10.1007/978-981-19-6986-7_8
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