The Role of Guanxi in Negotiations in the Pacific Basin

In the Pacific Rim nations, it is imperative for Westerners to strive to establish close connections, guanxi, with ethnic Chinese if they want to develop firm alliances with them. With guanxi, one is an "insider," negotiations proceed smoothly, and much can be accomplished. Guanxi connotes more than being "old friends." It involves a commonality of share relationships and a reciprocal obligation to respond to requests for assistance. In the PRC, the art of guanxi is essential for obtaining scarce resources as well as dealing with the bureaucratic maze. As this cultural phenomenon is pervasive throughout the region, Westerners should be cognizant of how guanxi can be established, cultivated, and utilized as well as the measures for assessing its benefits. Without it, one is perceived as an "outsider" with little chance of success.