The concept of Guanxi and its positive impacts on the Chinese business environment (Term Paper Sample)

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Introduction
The term Guanxi carries several different meanings. Guanxi, in the most general sense simply means relationship (Bian,1994). The second usage of the term refers to a subset of relationships that involve the reciprocity of norms. A third usage of the term depicts a pejorative connotation which refers to the use of the authority in an unethical way to obtain economic or political benefits . Guanxixue or Guanxie represents a way to bypass norms, laws or regulations through personal connections with those who have little control or authority of resources. This paper will concentrate majorly on the second meaning of the term. Thus, here the term refers to a special kind of relationship that connects the partners through reciprocal exchange of mutual obligations as well as favors (Alston,1989).The exchange that occurs between members of the Guanxi connections are not entirely commercial but also have social implications which involve the reciprocity of favors also called "renqing" and the saving of face "mianzi" or social status. Therefore if a Guanxi partner receives a favor, they are obligated to return it in future. The violation of this reciprocity norm will damage the reputation of the violator and lead to loss of face (Chung,& Hamilton, 2002).