How To Do Business in China

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    Guanxi — a Chinese term for "network of influence" – gets dissected in this excellent article by Constantine von Hoffman on CMO, a Web site for marketing executives.


    As the author explains, "The tight social networks that guanxi encourages are very different from those found in Western societies. In the United States, for instance, it’s common practice to meet someone once and then offer to put that individual in touch with a friend, colleague or business partner.


    "’In China it would be completely inconceivable that you would do that,’ says Rita Gunther McGrath, an associate professor at Columbia Business School who advises companies on doing business in China."


    Likewise, the article says, if you get into the "wrong network early," it’s hard to work your way out again.


    Worth reading if China is your destination for services.