Not too long ago, the world had its eyes on China as one of the fastest growing countries in the globe. Now its economy has been slowing down, and the future doesn’t look quite as bright any more. One of the bright spots in China’s economy was its e-commerce sector, where players like Alibaba were breaking new ground with their humungous sales figures. A new report, however, takes the sheen off these numbers.
Anyone doing business in China must become familiar with Guanxi. Commonly described as the system of social networks and influential relationships which facilitate business and other dealings, Guanxi is a crucial part of business life in China. Leadership expert Steve Tappin says it’s simply part of the “social fabric” in China. “It’s very difficult to get things done without it,”