by Bob Schmidt

Created on: April 22, 2008

Anyone interested in doing business in China would be well advised to study the Chinese culture before any overt efforts are made. The Chinese business world is quite different from western cultures. Business interactions in China are ruled by an important element which they refer to as guanxi.

Literally, guanxi means relationships. Relationships are all-important in Chinese culture. Within the business world, guanxi refers to the network of relationships that produce successful business. Businesses cooperate with one another in a supportive manner in China. It might seem somewhat like exchanging favors regularly with business associates, and voluntarily. In many cases, generating business profits might seem to be secondary to the relationship factor. Such is the practice of guanxi among the Chinese.

When doing business in China, familiarity is highly desirable, and is one aspect guanxi. For that reason, many business agreements are preceded by a trip that seems to be purely social. The honor that you bestow upon the Chinese businessman by visiting him before attempting to do business is considerable. Contact can foster friendship, and many Chinese feel obligated to do business with friends. They do ask the same in return.

There will be few business situations where courtesy is more important than will be found in China. Even though they are fierce warriors by tradition, common courtesy is highly regarded within Chinese culture. Tradition is the key word here. Western business people must honor the traditions of the very proud Chinese people. Courtesy will go a long way towards opening the business doors necessary.

Should a situation present itself where a business person might stand in defense of his Chinese business associate, the action of defending him creates the highest form of guanxi. It is viewed that the truest of friends do such things, and that should be rewarded. This is true in the western culture as well, but the loyalty of the eastern culture is probably more intense. Treating someone with courtesy when others are treating him unfairly can create a wonderful relationship.

Extensive study of Chinese cultural traditions can greatly increase the odds of success for anyone trying to do business in China. Many resources are available on the Internet, as well as through the Department of Commerce. The time and money spent will assure anyone of the best possible results of their business efforts in today's global economy.

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