Guanxi-the Most Important Factor When Doing Business in Business - Wire & Cable India
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Guanxi-the Most Important Factor When Doing Business in Business

Before doing business in China, you should know something about the Chinese business culture. Chinese business is constructed on long-term partnership which can be called “Guanxi” which can also be applied to negotiation.

Firstly, you should pay more attention to the first meeting. If your Chinese counterpart speaks a little bit Russian, the touch point is going to be – when and where he studied Russian. If he studied Russian in Moscow, then, he can tell a lot of things about the capital, due to the fact respect and interest to the culture would be the first touch point.

The next stage could become children, talking about the children can be quite tactful. This is mainly because the demographic policy of China, the main thought of which can be a birth of one little one in a family. That’s why it will be impolitely to ask about a number of grandchildren.

Additionally it is crucial to keep in mind some particularities of Chinese culture, if you desire to give presents. When you want to give present to Chinese people, by no means give watch, simply because such present means the finish of company deal. Additionally, Chinese people like red color which indicates celebration.

Creating friendly relationships does not mean to neglect about business goal. For those who have some controversies in business, it’s important to be friendly and to gain wished price because of prolonged business negotiations. Negative reaction will make your efforts groundless and needless. Let me give you an example of broadening of net of McDonald’s restaurants in China. When the first restaurant was developed in China, Chinese request the firm to move it on a distance of 700-800 meters from the earlier place. The negotiations have been extremely long between the two parties, however the restaurant was moved with condition, that it will likely be paid a large compensation, what was made by Chinese without judicial settlement. Right after this Macdonald opened a large net of dining places in China. So you should bear in mind about the pleasant way of creating relationships just like relatives — “Guanxi”.

All in all, the seasoned manager should also know that “Guanxi” could be a key to build a harmonic connection with Chinese businessmen. It is attainable to create friendly family atmosphere, but at the same time to create an invisible border between business and frequent informal interests. Find touch factors in form of cultural interest, as was currently mentioned, could underline respect to culture and make Chinese more disposed to creating prolonged termed business relationship.

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