Thinking about doing business in China? Before you begin an understanding of "guanxi" is of paramount importance. One of the most crucial business decisions an organization has to make when it intends to make investments in china is getting the right advice. The right advice has a lot to do with "guanxi". It literally means "relationships" and it is an important concept to understand if one is to function effectively in Chinese society. In order …
showed first 75 words of 2475 total

showed last 75 words of 2475 total
…establishing personal relationships with Chinese counterparts. Quality relationships can take a long time to build, but are usually worth the effort. Another aspect of guanxi is "the informal connections that tie overseas Chinese to friends and relatives on the mainland". Though there is insecurity because of an unclear legal framework for investment, many overseas Chinese invest capital back into China. Because of the ties from guanxi, these investments by overseas Chinese are favored over others.