Description
At its most basic, guanxi describes a personal connection between two people in which one is able to prevail upon another to perform a favor or service, or be prevailed upon. The two people need not be of equal social status. Guanxi can also be used to describe a network of contacts, which an individual can call upon when something needs to be done, and through which he or she can exert influence on behalf of another. In addition, guanxi can describe a state of general understanding between two people: "he/she is aware of my wants/needs and will take them into account when deciding her/his course of future actions which concern or could concern me without any specific discussion or request".
Guanxi refers to the benefits gained from social connections and usually extends from extended family, school friends, workmates and members of common clubs or organizations. It is custom for Chinese people to cultivate an intricate web of guanxi relationships, which may expand in a huge number of directions, and includes lifelong relationships. Staying in contact with members of your network is not necessary to bind reciprocal obligations. Reciprocal favors are the key factor to maintaining one’s guanxi web, failure to reciprocate is considered an unforgivable offense. The more you ask of someone the more you owe them. Guanxi can perpetuate a never ending cycle of favors.
The term is not generally used to describe relationships within a family, although guanxi obligations can sometimes be described in terms of an extended family. The term is also not generally used to describe relationships that fall within other well-defined societal norms (e.g. boss–worker, teacher–student, friendship). The relationships formed by guanxi are personal and not transferable.
Douglas Guthrie distinguishes between guanxi and guanxixue (关系学, the 'art' or 'knowledge' of guanxi), as the former is considered in the modern Chinese society as common inter-personal ties that reflect the Chinese nature, while the latter represents the manipulation and corruption brought about by a selfish and sometimes illegal utilization of guanxi. Although many Chinese lament the strong importance of guanxi in their culture, they still consider guanxi as a Chinese element that should not be denied.
Some economists have warned that Western countries and others that trade regularly with China should improve their "cultural competency" in regards to practices such as guanxi, to avoid financial fallout due to lack of cultural awareness.
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