Guan Xi in China

China is a land of opportunity with the Chinese Government actively encouraging foreign investment and welcoming foreign expertise.

However, in the world’s second largest economy, successfully arranging a meeting and knowing who to trust can be difficult for those without the right connections.
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Guan Xi
What is Guan Xi, and why is it so important?
Guan Xi is a part of life in China. It has been described as relationships, connections, networks of contacts, circles of influence, social currency, and even a form of corruption.
The truth is that it is all of the above and more – it boils down to being mutually beneficial relationships that enables things to get done. In business, it is a way to cut through red tape or solve inconvenient problems. Usually it is used to achieve successful partnerships and gain customers. In most cases, it is through Guan Xi that first meetings or introductions are even possible.
When a person has ‘good’ Guan Xi, the person has the right connections to deal with a particular problem. Using the person’s Guan Xi would generate a debt that would have to be repaid – however, the relationship would not end on repayment, but is expected to continue. The value of the relationship is evaluated constantly, and is taken in to consideration in every decision made.
If the value of the relationship is great enough, there are many things the person would do in order to maintain it. This is a powerful force to have on your side.

Can I have Guan Xi?
Some foreigners do not even try to achieve Guan Xi, as they perceive socialising and building relationships secondary to the business transaction at hand. Their Chinese counterparts, however, view the relationship potentially as more important than the transaction.
To build up the relationship, you should always accept invitations to attend any banquets, dinners, entertainments etc that the Chinese host throw at you. You will need to follow the Chinese protocols during meals and drinks. You will need to be prepared to return favours.
However, even after doing all this, it has been said that it is difficult for a foreigner to ever have Guan Xi. There are a number of reasons for this.
Firstly, there are many levels of relationships, the closest level being reserved for family, then school friends, to acquaintances and work friends being the least closest level. As the person is foreign, he is automatically assigned the furthest away level of relationship and thus the least powerful form of Guan Xi.
Secondly, for Guan Xi to work, the relationship must be mutually beneficial. Not only is the Chinese person supposed to be available to the foreigner, vice versa also applies. However, it may be viewed that the foreigner is in China for only a short period of time, so would not be able to reciprocate in terms of favours.
Thirdly, Guan Xi often takes on a financial dimension which unfortunately can be labelled as corruption conceptually. The avoidance of this part of the relationship out of principal or in compliance with company policies results in less effective Guan Xi. 
Does that mean that Guan Xi is simply not available for foreigners?
 
Guan Xi merchants
Like anywhere else in the world, when all else fails, cold hard cash is the best method to resolve problems. Companies in China are there to make money, so money is the easiest way to get any problems sorted. However, not everyone is blessed with a large bank balance.
Due to the growing number of foreign entities in China there is a growing market for ‘Guan Xi merchants’.  These merchants utilise their network of contacts for a fee. Therefore for a foreigner, Guan Xi is available by engaging with a merchant. This can be an easier and cheaper way to get introductions – and by using Guan Xi like everyone else in China.