ABSTRACT
Cultural practices such as donations for all kinds of social affairs and the distribution of red pocket are used to establish such positive relationships. However, red pockets are used in a large variety of situations. The extent of voluntariness in the offering of red pockets varies a lot, from those given to show gratitude for a specific service to those directly requested by the receiver, to which the entrepreneur must agree if he wants to maintain his economic profit. In this last case, many red pockets are provided not to thank for an action already performed but as a prevention against potential interference and nuisances from the individuals and departments with power in the economic realm:
‘First of all, you have to consider red pockets as an insurance ... You should be safe from all kinds of risks due to the absence of clear rules. Secondly, you can save time, money and efforts because people will try to make life easier for you, and they will not abide by the existing rules... I had to change the air system in my factory for instance, and according to the legal dispositions, I should have closed my factory during three days to do so. But I just didn’t, and nobody came to say anything ...’ (Taishan, February 1998).
