ABSTRACT
This chapter examines what factors are facilitating establishing guanxi networks with local officials by using the data set of 2nd Wave of East Asian Businessman in China Survey 2010-2011, which covers Korean, Japanese, and Taiwanese expatriates working in local subsidiaries in the Chinese market. Some empirical researches support the idea that Hong Kong and Taiwan businessmen are still using the guanxi network both in their local societies and in the Chinese market though there are some differences of use of guanxi depending on company size and market competitiveness. As Lin and Keng point out, Taiwanese businessmen have more channels to mobilize resources in local communities, especially from their ethnic group, which makes it less necessary to make efforts to 'la [pull] guanxi' with local officials in comparison with Korean businessmen. A strong Guanxi network also can lead to a reliable supply of common production materials which is vital for a manufacturer's success.
