International Correspondent, China
2009 was a tough year for most of the world: Familiar brands went under, economies collapsed and the job market was in freefall. Some countries fared better than others, China chief among them. While consumers in the west are still tightening their belts, many businesses are looking to China to find customers, outsource production or expand their marketing efforts. But how can you build a network of contacts to enter the Chinese market? And once you're there, how can you build relationships with the locals on the ground?
Networking in China can mean one of two things: Either traditional western networking with Chinese characteristics or Chinese-style guanxi. While you'll find the former in the more international cities like Beijing, Shanghai and Hong Kong, guanxi rules the roost nationwide, and even beyond.There's no direct translation for guanxi, but perhaps the best way to put it would be "relationships." Unlike western networking, in which you'll often see a large network with loose connections between members, guanxi networks are much tighter and generally smaller. Similarly, while reciprocation for mutual benefit is done in western-style networking, its very much more expected with guanxi and people will tend to go further to pay back the "debt" when people help them out -- it really is more of a "you scratch my back, I'll scratch yours" system. Said backscratching can include introducing business connections, teaching English to someone's kids or anything else for that matter. Guanxi stretches across all business and social boundaries.
China is a developing economy with many vestiges of its communism still in play. I've heard horror stories of red tape, bureaucracy and government indifference towards both local and foreign companies, and it really is a case of "who you know" rather than "what you know." Having good guanxi with the movers and shakers can really make or break your business in China.
For Chinese people it can take years to build up guanxi. For westerners it can be a little easier -- since we're new in town and not expected to have many relationships built up already, locals can be more willing to let you into their social circle whereas "just another Chinese person" might find it difficult. Likewise, westerners will often (be assumed to) know contacts overseas or have skills that may be useful for their Chinese contacts. Whether or not this is truly the case, it will help get you started building guanxi and your network in China.
In later articles we'll look at:
- How to build up your network in China, both with Chinese and other foreigners
- How to build your guanxi
- How to do western networking with Chinese characteristics
- Making small talk and building rapport in China
- Common mistakes and things to look out for when networking in China
About Alex
Alex Cureton-Griffiths is dedicated to helping expatriates and Chinese in Shanghai network and build business relationships more effectively.
Alex was born in Shropshire, England to a family of entrepreneurs. From the time he was young he was fascinated by Chinese culture, and after his family emigrated to New Zealand in 1996 he majored in Chinese and Asian Studies at the University of Otago. At the age of 19, he took a 6-month sabbatical to work in the underprivileged Jiayuguan in Gansu province and has since lived in New Zealand and Inner Mongolia before settling in Shanghai in 2004. In 2006 he started Shanghai Networking News, Shanghai's premier networking website and e-mail newsletter that has helped thousands of locals and expats network more effectively, and he is now actively involved in training professionals to expand and make the most of their business networks in Shanghai.
Alex has been featured on ICS (International Channel Shanghai), Shanghai Radio, The Shanghai Daily and BBC Radio for his skill in networking, business relationships and personal branding.
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