Guanxi is critical engaging business in China?

Guanxi in Chinese means personal social network relationships.

China has just opened its door to the outside world for only twenty-six years. It is evolving from a well-planned economy into captilasm market system. China does not have a good or quality judicial system. People who have good Guanxi, or personal relationship network usually have advantages when there is dispute between his partner and himself.

Among the relationships, one is most important to develop good relationship with the goverment officials. Chinese goverment officials or even staffs in the administration have much more power than their conterparts in the US. On the other hand, the lawyers or judges do have limited power. Even if you win a lawsuit, you will not eventually get what you demand, and you deserve to get.

Family relationship is another one. A family having members in the goverment and business section usually is in a good position to expand their bussiness. Most of Chinese firms are controlled by family members as it was developing in the 1800s or 1900s in the west.

to be continued......