The importance of Guanxi (关系)

The relationship which underlay and mutual support based in China is guanxi (关系).

What exactly guanxi is? When we use this term we are referring to social relations based on mutual benefit.

When doing business in China, you should really understand the importance of guanxi (social connections), and the terms and renqing (人情) (reciprocity) and Xinren (信任) (trust).

Once introduced or introduced in the reciprocal lattice, based on trust, you have to keep in mind that you can ask for favors and as well as that, it is your obligation to return them when someone in your guanxi request you .

What is it good for?

If we get a good guanxi, our company will minimize the risks and frustrations when doing business in China.

How to create guanxi? It is recommend to be into through a partner, a company or a Chinese friend. There will be greater confidence if the person or the foreign company are introduced by Chinese people or by a foreign person with extensive experience and contacts in this country. You should choose people with good guanxi ( ie a network of extensive and important influences).

It should be noted that several strategies can be used when creating a good guanxi: promote long-term mutual benefits, create and maintain personal relationships (through gifts and banquets in restaurants), and care trust and performing favors.
Why is this knowledge necessary concept for Spanish or Italian companies?

Guanxi is an important part of Chinese business culture, and there are a large number of business people from all over the world coming to China since its opening up and reform policies.