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 on...