Guanxi- Chinese Business Relationships

Guanxi The delicate art of Chinese Business Relationships Pronunciation: /gwani/ noun (in China) the system of social networks and influential relationships which facilitate business and other dealings. Oxforddictionaries.com A Chinese term meaning networks or connections, understood to be a network of relationships designed to provide support and cooperation among the parties involved in doing business. According to the Los Angeles Chinese Learning Centre, by obtaining the right guanxi, organizations minimize the risks, frustrations, and disappointments when doing business in China. -Investopedia.com Not a simple picture Business in China is not simple. Anyone who tells you otherwise is lying. Websites that offer "post your product here, get a sale", those who ask you to "send us your information, sales guaranteed" are playing on the trust of Western business people who are serious about doing business in China. Export to the East So can a Westerner export to the East? Without doubt- without any question at all, yes. But- and this is the big but- they need help. "You need Chinese to deal with Chinese" says Candy Yu from YUAN Ltd, a company specializing in export to China. "China is not just a country, it is a way of thinking. You need someone on your side to really, really make the connections for serious business." Well Connected Guanxi. The Old Boy network. Who you know. Who do you know in China? Exactly. But even if you know the Vice Chairman, it doesn't mean a thing unless you share Guanxi. Which, as a foreigner, you simply dont. You might know about it, you possibly see it in action, but however much people may smile at you, you havent got it. This is where you need reliable, well-connected Chinese to act on your behalf. "Guanxi is in our culture, our blood. It goes beyond family relations, school friends, university colleagues. It can be rich to poor, poor to rich. It is word-of-mouth reputation, trust, built over years. It is about reliable delivery. "When I represent my customers, I am risking my reputation, my face, my family name for them," says Candy. "YUAN Ltd and I will only do business with companies that I sincerely believe have the product or service that can excel in China. Go-it-alone foreign business people will often find that they return home with pockets emptied and no long-term business prospects. guanxi is the missing key, allowing doors to open, opportunities to be presented. "You say, to call in the favours. Really, its not this. It is more Work together for a better life. Good guanxi comes from many years nurturing. This is what I bring to the table. When your business is successful, we all benefit." Six degrees of separation There is a theory that everyone knows everyone else through 6 other people- "Six degrees of separation refers to the idea that everyone is on average approximately six steps away, by way of introduction, from any other person on Earth, so that a chain of, "a friend of a friend" statements can be made, on average, to connect any two people in six steps or fewer. [Wikipedia]" Be honest Says Candy, "My company YUAN Ltd is based in England. I have dealt with Westerners for many years, whilst exporting from China. I understand that for you, its business first and then friendship may develop. But in China, your chances come from your network. I will use my relationships for my customers if I believe we can both succeed. "Some businesses can successfully export today- China is ready- others will succeed in a couple of years time. Some not at all. I have to be honest to the people who come to me. For their sake, my sake, for my good guanxi. But the potential for success is beyond imagination. I will do my best. Cant get a better offer than that.www.yuan.ltd.ukcandy [at]yuan.ltd.uk+441242 602875 07971 868686