Guanxi in China versus Western Countries

Guanxi in China versus Western Countries
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Introduction
In all parts of the world, relationships are critical in business. Without some form of relations, it would not be possible to undertake business. While personal relationships are important, in Western countries, doing business involves a less personal relationship with people. Rarely will people require to know personal details like religious beliefs and astrology symbol among others. However, in China, such personal information matters a lot in business transactions. Relationships mean everything in China and hence while nurturing business relationships sharing information of personal nature may arise. While personal relations remain important in the Chinese context, they do not apply much in Western countries.
How guanxi works in China
The Chinese refer to personal relations as “guanxi.” The term refers to having a personal relationship and trust with someone. Guanxi can be viewed as “connections” and “relationships” that people develop (Nolan). It can also be described as the network of contacts that individuals can utilize when they need something to be done. While such networks may not be important in the Western context, they play a critical role in conducting business in China. In any culture, personal relationships are important, since people work and live in these contexts. In Western nations, it is common for individuals to have close personal relations, while at the same time keeping social relations at a distance. On the contrary, social relations are not important unless they are personalized and included in a person’s guanxi network. In China, guanxi ties individuals in a dyadic relationship (Bian). In the most basic form, guanxi is an interpersonal phenomenon in personal spheres. However, as people socialize in broader social structures, guanxi goes beyond private spheres and affects other areas like economic, legal, and political arenas.
The emphasis on guanxi in public spheres has been created by the following two conditions. Firstly, China maintains a cultural repertoire that holds relational believes and values. People take personal relations to be important not only in private spheres but also in the public space. The culture promotes the need to maintain close personal ties with people. Secondly, institutional space has been formed for informal norms to prevail. Instead of focusing entirely on formal structures, the Chinese have allowed informal norms to be extended even in public life. Hence, personal relations, which would be considered in Western societies as private affairs, have encroached the public space in China.
Guanxi emphasizes the idea that who an individual knows is more important than what he/she knows. People form guanxi to benefit from what the network offers. For instance, guanxi can be a shortcut to getting things done easily, that would otherwise require long procedures. Individuals can utilize their guanxi with say a school principal that enables their child to get a good elementary school. Guanxi between a father and the manager of a company can secure a job opportunity for a son. In other words, guanxi operates on the premise that once an individual is assisted once, they will return the favor the next time someone needs it (Bien). Guanxi serves to assist people to demonstrate mutual assistance and benefit. Since society is interdependent, people need to assist one another in the hope that they will receive assistance in the coming days.
Why guanxi is not happening in Western society
Guanxi depends largely on dependence, which is not the case in Western society where individualism has taken root. China, unlike Western countries, encourages dependence and restraint. Such a collective society in China can be traced to the Qin dynasty, the first Chinese dynasty. The dependence on the collective allowed the emperors to rule over the people. Despite the changes in dynasties, the system of guanxi has remained. People have embraced guanxi such that it is challenging to get rid of it. In China, society consists of a high level of dependence on the collective (King). In a traditional society, the level of production is low. This means that people need one another to survive harsh times. People cannot survive independently without assistance from one another.
The advancement of capitalism since the Renaissance has broken dependence among individuals in Europe. The system of capitalism brought about by industrialization allowed people to gather wealth and become independent. During the Renaissance, the opportunities in the city prompted people to move from rural homes and start a new life in the city. These individuals gradually started industries in the city that began to do well. The need for people managing the city arose, hence leading to the formation of bodies like city councils among others. The ruling power controlled the affairs of the city dwellers. However, the merchant class continued accumulating wealth to the extent that they could challenge the ruling class (King). The dependence on feudal lords was with time broken. Since people had accumulated wealth, community dependence was unnecessary.
Guanxi in modern society
Despite the progress China has made over the years, guanxi is still prominent. Personal relations remain important when people are doing business. This can be illustrated by the experiences of Bill Gates in China on two occasions. In the first instance, Gates made a short visit to China in 1994, where he met President Jiang Zemin. The meeting was short according to Chinese standards. Gates and President Zemin discussed on how they could collaborate more. However, the visit was not as successful as expected because Gates made some mistakes. Firstly, Gates met President Zemin, he wore jeans and a pair of tennis shoes. It was expected that during such a visit where he was meeting the president he should have dressed officially. Secondly, Gates was in Chinas for only two days, which was a very short visit. He should have remained for some time so that he can build relations. Hence, at the end of the trip, it was clear that Gates and Microsoft had a lot to learn about doing business in China (Buderi and Huang 2). However, on the second trip to China, Gates had a different approach. This time around, he had only 10 people with him, including his wife, father, and Warren Buffet. Gates was not in a hurry like the first instance. He told President Zemin that he wanted to visit the western part of China. The President went ahead to suggest that he visits Three Gorges. Gates had more time to discuss business with President Zemin, which was not possible during the first short visit. The scenario of Bill Gate’s visit to China demonstrates that modern society still values guanxi. Gates got a better reception because he recognized the need to develop personal relations before talking about business.
Guanxi has kept Chinese society far behind in terms of the availability of information. According to Yadong, maintaining good relations with the elderly is an effective way of obtaining information in a traditional society. Because of guanxi, less knowledge is available because it can only be found within certain circles. Hence, to obtain knowledge, one has to be a member of a particular group. However, the information in China is becoming more open and transpar...