If you live in China, you would have heard of a word that’s frequently used … guanxi.
Before you load your translator, guanxi simply means relationship. The heart of how a Chinese communicates and performs daily tasks all comes down to this simple word. As a foreigner who just stepped into China, this concept seems foreign but after a lot of discussion with people, they will begin to understand why guanxi is so important for things to work.
Historically, Chinese are famous traders who sail the open seas to trade or also within the large landscape of China itself. As the owner normally are hands on with all the trade, they would travel far and beyond by themselves to seal any deals leaving their staffs to work the finance and backend operations at their headquarters. You’ll probably know that most of the workers are probably relatives of the owner to maintain integrity and honesty of the entire business. In today’s world, we called that nepotism. During those times, most empire would rely heavily on family members to ensure all business are ran smoothly with no ill-effect.
While big families continue to run important positions, there are also friends introduced into less important positions if the one of this business gets larger. Now, you’re in the era of cronyism. The evaluation of people then purely based on blood and friendship over whether they can deliver the job.
Fast forward to China today, we still recognise that it’s important to have good relationship with the person before you’re given opportunity to partner them. The caveat today is besides being a good friend, the product you’re selling has to be of certain standard. After all, no friends want to continue to be your friend if you keep giving them bad quality stuffs.
And the heart of building this great relationship is through social networking. Before the Internet was created, social networking occurs in weddings, parties, conferences, speeches and any events where a rather large group congregates. Further to that, these group of people would introduce each other as who knows who and are friends of who. Immediately, it closes any gap of being a stranger. After all, the person who sits next to you might know your friend’s vet. While the communication continues, it will come upon a time where the conversation will be steered towards whether there are opportunities for both parties to work together on some initiatives.
This interesting cycle will continue to be harnessed and a good business can be concluded. They continue to drink good wine offered by the host while strengthening their relationship.
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