Another cultural aspect in Chinese society that is as major as our the “Face” concept indicated in our last CNY 2022 Special, is the “relationship” (关系, guanxi). In fact, the phrase guanxi is way beyond a cultural nuance now, but a concept commonly seen and acknowledge even on academic materials about international business, as China is one of the big players in modern commerce.
First, let’s break down the phrase by its two characters.
关系
Guān: to close (v) or barrier (n) and
Xi: to tie (v) or system (n)
Its role in Chinese culture needs no more emphasis. But the term actually can refer to two concepts with subtle differences, relationship and connection. Simply put, in order to do business in China, you have to have the right guanxi as well as the good guanxi. In the context here, amicable guanxi can be very beneficial to your product, and even your business. That includes better pricing, better product quality and better protection for your IP, as it secures more devotion to your order from your supplier. It may not align with your business values, but unfortunately it is a societal norm there.
Although young generations of Chinese people are looking to change this narrative, as in popular opinion guanxi actually doesn’t fit in the rules of modern business, it is unrealistic to eliminate it from the Chinese society overnight.
In this case, how does good guanxi come about?
Make Relationship Personal
Chinese culture praises hospitality. A good guanxi in a business context means warming up to you as if you’re a friend. Therefore, one big key here is to make your relationship with your supplier a bit more personal, even though you only want to make it about work. When you get a chance to visit China, accept invitations for dinner and entertainment. Offer a simple favor when you think he/she needs help. In most circumstances, that person will gladly decline, but this will bring the two of you closer. Having a good personal relationship will only mean good news for your business as they will feel closer to you and your project.
Bring A Gift on Your First Encounter
This may come off as inappropriate in western culture to bring gifts on business occasions, as it may be interpreted as a bribe. But it is the exactly the opposite in a Chinese context — that it is a perfectly normal business etiquette. That is to say, don’t get caught off guard when they bring you a gift too (most likely the gift will be very symbolically Chinese). You don’t have to bring anything fancy, but something enough to show a friendly gesture. Just like any good relationship, a good guanxi is always mutual and reciprocal.
Find A Chinese Partner
If you still find it challenging to navigate this part, one of your best options is to find a Chinese partner who knows the culture and has the right connections. They’ll be of great help to spare you from all a lot of culturally specific issues, bridging the gap between you and your Chinese supplier. C2W will be your perfect companion for this journey with our UK background and 16 years of experience in China, priding ourselves for our excellent and diverse international team fluent in both Chinese and English.
Please feel free to contact us if you are interested in getting to know more about our services. You may feel like a fish out of water when it comes to Chinese culture that seems mysterious and complicated to a lot of westerners, but we are here to make sure you can stay grounded.
Once again, C2W wishes you and all your loved ones a very happy year of the tiger!
