Guanxi in China

The guanxi concept which is about favouring relationships and connections that have been built over time in matters that have an impact on business as well as economic and financial gain is deeply rooted in Chinese culture and traditions. Although the western concept of relationship marketing also accepts that economic activities should be seen as being embedded in ongoing structures of social relations, the Chinese concept of guanxi is about longer and more enduring relationships that provide benefits for everyone. Thus, Chinese business people are far more likely to turn to those that they already know in order to minimise risks then to deal with others, while extending favours to those that they consider to be members of their group.This dissertation examines the guanxi phenomenon in China and presents an analysis of the views expressed by western educated Chinese managers about the mixing of western and Chinese business paradigms.