Is Guanxi China’s Cultural System of Grass Roots Business and Justice?

November 17, 2015

In lieu of a Western style legal system for most of China’s history, Guanxi offered an alternative for thousands of years to foster innovation, develop trust and contribute to trade and commerce.

Sir Robert Hart (1835 – 1911), the godfather of China’s modernization and the main character in my historical fiction novel, discovered the importance of Guanxi soon after he left the employ of the British and went to work for the Emperor.  He quickly learned that a “supreme value of loyalty glued together China’s structure of personal relationships.” Source: Entering China’s Service

In addition, Hart wrote in a letter in 1891, “These people (referring to the Chinese) never act too soon, and, so far, I have not known of their losing anything by being late. To glide naturally, easily and seasonably into the safe position sequence as circumstances make, is probably a sounder though less heroic policy for a state than to be forever experimenting—”

To translate, it takes time to develop a relationship/friendship/trust (Guanxi) that all involved might benefit from.


Warning: This is a Promotional Video. However, it offers a perspective on Guanxi worth watching.

However, I did not learn about Guanxi from Robert Hart. I first learned of it from the China Law Blog, which quoted the Silicon Hutong Blog.

Then I did more research and watched a few videos on the subject. I learned that Guanxi is one of those complexities of Chinese culture that does not translate easily.

There are several elements and layers to Guanxi. First, Guanxi is based on a Confucian hierarchy of familial relationships, long-term friendships, classmates, and schoolmates and to those no stranger – Chinese or foreign – will ever have access.

Guanxi developed over millennia because China did not have a stable and effective legal system similar to the one that developed in western countries.

In fact, the legal system in China today is relatively new and made its appearance after the 1982 Chinese Constitution became the basis of the law.

Since 1982, there have been several amendments to the Constitution as China adapts its evolving legal system, which was modeled after the German legal system.

In time, this Western influenced legal system may replace Guanxi since business law modeled on Western law with Chinese characteristic has developed faster than civil law.

There are a several opinions about Guanxi. I learned that Guanxi is similar to a gate that opens to a network of human beings, but it isn’t that simple.

Maintaining Guanxi is different than how relationships are maintained in other cultures. The embedded videos with this post offer a more detailed explanation.

The China Law Blog copied the post from the Silicon Hutong Blog. The post on the China Law Blog had more than twenty comments and it was a lively discussion worth reading if you are interested in discovering more.

______________________________

Lloyd Lofthouse is the award-winning author of My Splendid Concubine [3rd edition]. When you love a Chinese woman, you marry her family and culture too. This is the lusty love story Sir Robert Hart did not want the world to discover.

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Discover the History of Guanxi

March 11, 2014

I first heard of Guanxi from the China Law Blog, which referred to the Silicon Hutong Blog.

After reading the China Law Blog’s post, I did more research and also watched a few videos on the subject.

I learned that Guanxi is an aspect of Chinese culture that does not translate easily.

There are several elements and layers to Guanxi. First, Guanxi is based on a Confucian hierarchy of familial relationships, long-term friendships, classmates, and schoolmates and to those no stranger—Chinese or foreign—will ever have access to. (Silicon Hutong)

Guanxi evolved over the millennia because China didn’t have a stable and effective legal system. In fact, the legal system in China today is relatively new and made its appearance after the 1982 Chinese Constitution was established.

Since 1982, there have been several amendments to the Constitution as China adapts its evolving legal system.

In time, this legal system may replace Guanxi since business law modeled on Western law with Chinese characteristic is developing faster than civil law.

Through the centuries, merchants in China needed a way to avoid disputes and problems in the absence of a well-developed legal system. To survive, this complex system called Guanxi developed with many components such as partnerships, trust, credibility, etc.

Guanxi developed organically in civil society due to the absence of a uniform, government mandated legal system, and maintaining Guanxi is different than how relationships are maintained in other cultures. The embedded video with this post offers a more detailed explanation.

The China Law Blog’s had more than twenty comments, and it was a lively discussion worth reading if you are interested in discovering more on this topic.

_______________

Lloyd Lofthouse is the award-winning author of My Splendid Concubine [3rd edition]. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.

His latest novel is the multiple-award winning Running with the Enemy.

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Sex is NOT Important

September 19, 2012

My wife, daughter and I saw “Chinglish“—a play by David Henry Hwan—on Sunday, September 16 at the Berkeley Rep Theater and we laughed-out-loud many times.

This is not a review of Hwan’s play as much as it is about how different cultures find common behaviors hard wired in our DNA to make connections.

Back to “Sex in NOT Important”, the title of this Post. Of course sex is important, but for thirty-two years, I kept telling myself it wasn’t. My reason for thinking this had nothing to do with sex but more to do with lust and how dangerous out-of-control lust might be.  For example, lust has led many a man and women into relationships that do not turn out well. Lust has led to priests/pastors to molest children. Lust is linked to rape. Lust has motivated a few teachers to have sexual affairs with students ruining lives.

Now, thanks to Hawn’s Chinglish, I have changed my mind about the importance of sex.

Before I continue the post, I want to thank Nina Egert, the author of Tracing Anza’s Trail: A Photographer’s Journey; A Place Where the Winds Blow: Men Women Plant New Roots at Oakland’s Original Rancho, and Noguchi’s California: Poetic Visions of a 19th Century Dharma Bum. Without an e-mail from Nina, I probably would have never heard of Chinglish.

After all, the Earth is still a big place and there is a lot going on 24/7.

To summarize Chinglish, this laugh-out-loud play was about Daniel, a former employee of Enron, who almost went to prison with the rest of the crooks. Daniel not only lost his high paying job with Enron but he’s broke due to the legal battle that kept him out of jail.

In a last desperate attempt at success, he goes to China to find customers for his American company (a business that’s been in his family since 1925), but Daniel does not speak a word of Mandarin. At the beginning of the play, he says, “If you are an American, it is safe to assume that you do not speak a single f*****g foreign language.”

That one line tells us how clueless most Americans are when it comes to other cultures.

Chinglish, through humor, teaches us a lesson about the minefield of misunderstanding and manipulation that happens when people of different cultures attempt to do business with each other.

Here’s the synopsis from the Website of the Broadway production of Chinglish: “An American businessman arrives in a bustling Chinese province looking to score a lucrative contract for his family’s sign-making firm. He soon discovers that the complexities of such a venture far outstrip the expected differences in language, customs and manners …”

However, there is another implied theme and that is why sex is important—something all cultures and races have in common that often transcends cultural differences. In the play, Daniel, an unhappily married man has an affair with an unhappily married mainland Chinese woman. Without spoiling the story, this affair provides the link that Daniel needs to succeed in China, and that link is Guanxi.

Early in the play, Daniel’s British interpreter, a man that has lived in China for years and speaks Mandarin fluently, tells him he must stay at least eight weeks to have a chance to develop Guanxi, a system of social networks and influential relationships that facilitate business and other dealings. The British interpreter says that for millennia China has survived without a Western legal system of laws, lawyers, courts and judges, and that Guanxi was crucial for China’s success as the longest surviving civilization and culture on the planet.

Hmm, is this a teachable moment? Do we learn something about the Western legal system compared to Guanxi?

Without understand how Guanxi works, Daniel struggles to cross the cultural divide but fails until he has the sexual affair with the wife of a Chinese judge. The sexual attraction and lust that led to the affair opens the door to the Guanxi network of his lover and her husband.

To discover what happens, you may want to see the play or wait for the movie, which I was told is in production and will stay faithful to the play. The last performance for Chinglish at the Berkeley Rep will be October 21, 2012.  Then it will appear at the South Coast Repertory January 25 – February 24, 2013 in Orange County, California before moving to Hong Kong March 1 – 6, 2013.

______________

Lloyd Lofthouse is the award-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.

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The Importance of Guanxi to Chinese Civilization

May 23, 2011

In lieu of a Western style legal system for most of China’s history, Guanxi offered an alternative to foster innovation, develop trust and contribute to trade and commerce for thousands of years.

Sir Robert Hart (1835 – 1911), the godfather of China’s modernization and the main character of my first two historical fiction novels, discovered the importance of Guanxi soon after he left the employ of the British and went to work for the Emperor.

He quickly learned that a “supreme value of loyalty glued together China’s structure of personal relationships.” Source: Entering China’s Service

In addition, Hart wrote in a letter in 1891, “These people (referring to the Chinese) never act too soon, and, so far, I have not known of their losing anything by being late. To glide naturally, easily and seasonably into the safe position sequence as circumstances make, is probably a sounder though less heroic policy for a state than to be forever experimenting—”

To translate, it takes time to develop a relationship/friendship/trust (Guanxi) that all invovled may benefit from.


Warning: This is a Promotional Video. However, it offers a perspective on Guanxi worth seeing.

However, I did not learn about Guanxi from Robert Hart. I first learned of it from the China Law Blog, which quoted the Silicon Hutong Blog.

Then I did more research and watched a few videos on the subject. I learned that Guanxi is one of those complexities of Chinese
culture that does not translate easily.

There are several elements and layers to Guanxi. First, Guanxi is based on a Confucian hierarchy of familial relationships, long-term friendships, classmates, and schoolmates and to those no stranger – Chinese or foreign – will ever have access. Source: Silicon Hutong

Guanxi developed over millennia because China did not have a stable and effective legal system as it developed in the West.

In fact, the legal system in China today is relatively new and made its appearance after the 1982 Chinese Constitution became the law of the land.

Since 1982, there have been several amendments to the Constitution as China adapts its evolving legal system, which was modeled after the German legal system.

In time, this Western influenced legal system may replace Guanxi since business law modeled on Western law with Chinese characteristic has developed faster than civil law.

There are a several opinions about Guanxi. I learned that Guanxi is similar to a gate that opens to a network of human beings but it isn’t that simple.

Maintaining Guanxi is different than how relationships are maintained in other cultures. The embedded videos with this post offer a more detailed explanation.

The China Law Blog copied the post from the Silicon Hutong Blog. The post on the China Law Blog had more than twenty comments and it was a lively discussion worth reading if you are interested in discovering more.

Learn more of Chinese Culture from The Mental and Emotional State of “Face”

______________

Lloyd Lofthouse is the award-winning author of the concubine saga, My Splendid Concubine & Our Hart. When you love a Chinese woman, you marry her family and culture too.

To subscribe to iLook China, use the “Subscribe” button at the top of the screen in the menu bar.

This revised and edited post first appeared here on October 18, 2010 as Guanxi in China


Changing China through its Youth – Part 3/5

February 1, 2011

The PBS Frontline narrator mentions how entrepreneurs that have been away from China must get used to doing business in China, which may include bribes.

In fact, to Chinese there is no clear definition of what is bribery — what the West calls corruption is deeply rooted in China’s culture (and has nothing to do with Communism) and is not seen the same way.

Lu Dong, going into the business of Internet tailoring, says, “If we use Western values to judge a Chinese company’s behavior, I think it is very hard to do business with them.”

Ben Wu, the Internet Cafe owner, says they (Chinese businessmen) have no interest in helping or not helping him, and he cannot figure out how to influence them.

To get help in China, one must make friends and since China is an eating culture that takes money. To learn more, discover the meaning of Guanxi in China.

Ben Wu, who was born in China but educated in the US, says he will not bribe anyone. However, he doesn’t think he can stop his Chinese partner.

One wise quote explains the choices. “There is nothing you can do. A fish has to live in water and if the water isn’t clean you must get used to it.”

Now, for a corruption reality check. Here is a comparison with the US. We know an engineer who stopped working in construction because of the difficulty in finding contractors that are honest.

We also had a bad experience with a contractor we signed on to build an addition to our house. Twenty-eight thousand dollars later without any construction starting, he was still asking for money.

An investigation on my part revealed he hadn’t taken out the construction permit even though he had collected the money months earlier to do so. We cancelled the contract and he filed a lien on our property for about $200,000 US.

Months later, we managed to get about half the 28 thousand back and California forced him to cancel the lien. However, we had to see and pay for a lawyer, file a complaint with a state agency in California and the process was stressful and frustrating.

The fact is that there is corruption in every culture and country. It just wears different clothing.

Return to Changing China through its Youth – Part 2

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Lloyd Lofthouse is the award-winning author of the concubine saga, My Splendid Concubine & Our Hart. When you love a Chinese woman, you marry her family and culture too.

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