Guanxi Networks in China： Its Importance and Future Trends

I. Introduction Guanxi is a Chinese word which is also recognized in Japan and Korea. In Chinese, Guan means a door, or “to close up” with those who are inside a group, and Xi can be interpreted to mean a joined chain. Thus, together, Guanxi can be translated as relationships and connections. In all the Chinese dominated societies in Asia, people use the word Guanxi to speak of someone who knows lots of people, who is well connected, and gets things done, not necessarily through formal …

Guanxi Networks in China: Its Importance and Future Trends

China's market potential is unparalleled, although many foreign business practitioners have commented that operating profitably in China is difficult, and more complex and time consuming than should be necessary. Given these facts, a lot of research on doing business in China gives recognition to the concept of Guanxi, a social and business relationship network, as the key to conducting successful business. By analyzing current research and collecting primary data from both the Chinese Mainland and Taiwan Province, this study aims to clarify the importance of Guanxi, and to study the future trend of Guanxi. By doing so, this paper intends to help business practitioners in China, especially those from the Western countries, to gain a deeper and more practical insight into the Chinese social network, and to help them make effective cross‐cultural adaptation and business decisions in the unfamiliar cultural environment of China. (Edited by Xiaoming Feng)