The importance of 'guanxi' in doing business in China

Описание: 한-중 간 성공기업, 중국 비즈니스의 전통 관례

President Moon repeatedly called his China trip a monumental undertaking to mend soured ties... especially on economic cooperation.
Many experts point out however....instantly visible progress is unlikely as Beijing is more about slow, steadfast and steady.
Won Jung-hwan explains the core difference in building business relations.

we should first expect small steps taken in that direction.
Following a year-long standoff over the deployment of THAAD on the Korean peninsula, Seoul and Beijing are rapidly getting their relations back on track. Highlighted by President Moon jae-in's state visit to China this week, efforts to normalize ties are seen on all fronts, raising expectations that economic exchanges between the two sides will get a much needed boost.
However, many Korean companies stress that doing business in China takes not only time, but also understanding of the country's unique concept of trust.

NMC cosmetics first entered the Chinese market 5 years ago. The company has managed to gain popularity among Chinese customers, and it has expanded to several cities across China. However, it wasn't an easy road, according to its CEO, as the way of doing business in China is a learning experience of its own.

(KOREAN)

"It takes time to build mutual trust. In my experience, you need to interact with Chinese business partners for at least 5 years to gain their trust. I realized that the concept of relationships in China is very different from ours."

Chinese society has many unique traditions, and building sound networks and relationships is key in the business sector.

(STANDUP)

"It pays to put in the effort building and nurturing strong business networks in China as… 'Guanxi', or 'relationships', has a big impact on business in the country."

Guanxi is a concept that describes connection, networking, and the basic dynamics in relationships. Although Korea also regards human relationships as an important factor when doing businesses, China's concept of relationships or guanxi is slightly different than Korea's,… and many Korean business people fail to embrace the full meaning of guanxi

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