Guangxiis a Chinese word, which literary refers to “relationships.” Itis used to refer to any kind of relationship, be it relationshipbetween friends, family, or couples. gives a basic dynamics inpersonalized influencing networks, which is a central conceptualissue in the Chinese society. The culture is based on school,workplace, family, and social networks. Langenberg (2007) defined as a personal relationship considered to be unique and specialwhereby long term special benefits are considered important thanshort term benefits meant for individual gains. No matter how“” is defined, it still remains a huge part and plays a bigrole in the Chinese culture, and how the Chinese citizens conducttheir businesses.

Thereare examples of that shows how the Chinese people used them toconduct their business. For example, they first preferred to dealwith trustworthy people. As much as it does not have many differencesto the western world, the Chinese heavy reliance meant that companiesin the world had to sell their reputation to the Chinese peoplebefore they could transact any business (In Tong, 2014). Furthermore,it meant that the relationship does not simply exist between the twocompanies but also at individual’s level. usage examplesinclude a good particular network of influence, which is oftenly usedin the media, the time when the western interpersonal duties overcomecivic duties, which leads to cronyism and nepotism.

Importanceof in Chinese Culture and Differences

plays an integral part of the Chinese business culture with a largenumber of business individuals all over the world traveling to Chinasince it has been opening and implementing policy reforms. The factthat China, with approximated one fifth of the all the consumersacross the world, has since obtained impressive improvement and rapidgrowth on the living standards of its citizens, the country isprojected to create a potentially huge market, globally (So &ampWalker, 2007). Luo (2007) predicts that China’s GDP will catch upand possibly overtake the United States in the next few decades. Thishas since attracts large population of businesspersons to China.However, carrying out businesses in China, especially largecorporates originating from the west, means that it could prove achallenge since they have to first learn and understand the Chineseculture and the .

Networksbetween China’s firms and those around the world play an integralpart in their success. However, the presents its uniquecultural features that compares with the networks to the West asreciprocating, personal, and long-term oriented. representsChina’s culture that is more personal since it is perceived toinvolve two cultural states. Again, there are nocorporation-to-corporation relationships that can be cited as far as is concerned.

Additionally, business culture is long-term oriented than the culturalnetworks to the west. Luo (2007) argues that individuals that areinvolved in appear to be patient for purposes of futureeconomic gains than the parties that are associated in westerncultures’ networks. Langenberg (2007) noted that people might nothave a particular reason for instant gain when cultivating however, they may have the expectation for benefits in the future.Again, culture is a kind of continual building network.

The runs across culture with regard to business opportunities.This means that the stronger the cultural network in anenterprise, the more opportunities is available. Again, playsa major role in acquisition of businesses in China. For instance, thetime when KFC opened the largest chain stores in Tiananmen, inBeijing in 1987, Gianni came through with the government of China toassist them in building permissions. is also perceived to be asignificant culture that keeps organizations updates with currentrelationship between them and the government in influencing policydecision-making (In Tong, 2014). also develops a goodrelationship with senior authorities in the government to necessitateconditions for successful business ventures.

Thereare other advantages and benefits that can be achieved from the, which can be used to build corporate reputation, motivateemployees, and enlarge market base. has cultural importancesince it is used to build corporate reputation since by using ,the organization could be promoted and its products are effective andsuccessful (Gold et al., 2002). For instance, an organization’spositive programs are likely to enhance its corporate image and it islikely to influence its reputation by using a more effective way ifthere is a relationship between the people and . That is, is used to extend the corporate market is alsobelieved that advantageous relationships between the company and theemployees can be motivated to work.

Inconclusion, from cultural perspective, plays a very importantrole in China’s business world and it still remains a differencewith the advanced reform police and opening-up. Since isrooted deeply in the Chinese Culture, it remains vital tomultinational China companies. The culture and differences exist alsois influenced by individuals and Confucianism by emphasizinglong-term personal relationship and group identity. Chineseculture is described as long-term time and collectivism orientation.It further highlight the differences that involves collectivistculture whereby close relationships is preferred and people takegreat care of their relatives and members of social group.


Gold,T., Guthrie, D., &amp Wank, D. L. (2002). Social connections inChina: Institutions, culture, and the changing nature of guanxi.Cambridge, U.K: Cambridge University Press.

InTong, C. K. (2014). Chinese business: Rethinking guanxi and trust inChinese business networks

Langenberg,E. A. (2007). and business strategy: Theory and implicationsfor multinational companies in China. Heidelberg: Physica-Verlag.

Luo,Y. (2007). and business. New Jersey: World Scientific.

So,Y. L., &amp Walker, A. (2006). Explaining guanxi: The Chinesebusiness network. London: Routledge.