Guan Xi

Guan Xi is probably the most important word for you to know when you're living or working in China. What does Guan Xi mean? You all know it if you're in business -- it is something we all do. For those of you who are on LinkedIn-- you do it. It translates into "networking" or "connections". The Chinese have a high regard for Guan Xi, as the basis of it's culture revolves around it. It is a little bit more then networking it is formed around relationships, consideration, honor, and respect.

Let me give you a scenario. Say: I have a Guan Xi with Jen and she is selling some low quality pens for $1 each and I have another supplier let's say Brad and he is selling better quality pens for 80 cents each. Since I have a Guan Xi with Jen, (even though the pens are of lower quality and more expensive) I will buy them from her because I know her and we have a connection with one another.

So when they teach you in business class that quality and price matter-- it's not always true.  To 1.3 billion people in the world, it's all about the relationship you have with the other person. So when you or your company decide to conduct business in China, it is very important to develop a strong Guan Xi with people you plan to conduct business with. Business is personal!

Next time you meet someone, try to build a relationship with them that is mutually beneficiary. Don't think to yourself "what can this person do for me" rather, build a relationship based off of affection, consideration, and respect. See where your Guan Xi takes you!