GUANXI, POINTS ON AN IMPORTANT CHINESE
BUSINESS ELEMENT
“Guanxi” stands for any type of PR/ relationship and is an important concept to understand if you want to do business effectively in Chinese society.
In China it is the right "Guanxi" that makes all the difference in ensuring that business will be successful. By getting the right "Guanxi", you minimize the risks, frustrations, and disappointments. Often it is acquiring the right "Guanxi" with the relevant authorities that will determine the competitive standing of your business in the long run. Moreover, the inevitable risks, barriers, and set-ups you will encounter would be minimized. That is why correct "Guanxi" is so vital to any successful business strategy in China.
Although developing and nurturing the "Guanxi" is demanding on time and resources, the time and money necessary to establish a strong network is worthwhile. What you could get in return from the favors are often far more valuable than what you put in.
However, it may not be so easy for you to launch into building immediately a Chinese network and try to establish good "Guanxi" with them over night. A good “Guanxi” will take years to develop. Employing a professional and qualified PR consultant with the right connections could therefore be a short cut to success in business in China.
