ABSTRACT

For "foreigners", engaging with Chinese people involves experiencing cultural differences that need to be understood. This chapter describes key characteristics of Chinese culture, and their implications for the way business is done in China. It outlines how Chinese culture differs from others and how that affects behaviour. The chapter explains the cultural phenomenon of guanxi and its consequences. Describing Chinese culture in terms of Confucian influences provides important keys to understanding. The narrative approach describes a set of Confucian beliefs built around the value of harmony in hierarchy, which can be achieved through virtuous behaviour involving deference to superiors, care for the family, modesty, thrift and learning. The meaning of the word guanxi is close to "connections". Guanxi is concerned with relationships between individual people – "personal" or "particularistic" ties. While guanxi is fundamentally about relationships amongst individuals, business in China is embedded within those relationships, which may be used on behalf of the organizations for whom the individuals work.