China business culture: What part should ‘guanxi’ play in importing from China?

Much is made in some business circles about the importance of guanxi — usually translated as relationships or connections — in China business. However, while there was certainly a time when a company’s success depended almost solely on the quality and quantity of its guanxi, Shawn He Yuxun of MeetChinaBiz maintains those days have passed for industries that have been marketized. He traces the recent history of guanxi and cautions that only those who stand to benefit from a mystified China tout this as an indispensable component for doing business there.

By Shawn He Yuxun

You might have heard of the Chinese word guanxi (pronounced guan-shee, literally meaning “relationship” or “connection”) frequently hyped by many China consultants or “old China hands.”

But don’t relationships and connections play a role in business everywhere? Isn’t this what “networking” is about? Is guanxi different? If so, how? And to what degree is it a “guarantee” for success in China? Is it a pervasive part of the business culture in China or merely “chic” among China consultants?

Read more at Cultural Considerations